That position will solely proceed to develop because the remote-working pattern turns into a long-term answer for a lot of corporations. Shifting to a hybrid work setting presents ongoing challenges – however challenges that should be addressed whereas companies proceed to search for methods to revive development. That’s why expertise might be important to assist corporations work smarter within the yr forward, whether or not it’s to handle a dispersed workforce, onboard new purchasers or pace up processes.
There’s excellent news as 2020 attracts to shut: In accordance with our latest survey of 500 executives, most corporations seem poised to rebound in 2021. Practically 70 p.c of respondents shared that their companies are well-positioned for development, regardless of some key hurdles.
Amongst these key hurdles is the necessity to combine new expertise options into geographically distributed workforces. That is the place digital transformation is available in.
The promise of going digital
Digital transformation – when corporations put money into new applied sciences like automation or machine studying – is considered one of many traits which were accelerated by the pandemic. Forty-four p.c of these in our survey have pursued digital transformation to enhance their effectivity, money circulation visibility and safety.
Contactless funds and banking, real-time funds and accounts payable / account receivable automation signify an important and promising areas of fintech innovation subsequent yr, which can have a direct influence on digital transformation for finance and accounting groups in 2021.
This fintech innovation is with good purpose: Because the pandemic started, greater than half of executives report delays in processing the invoices they obtained from distributors, which poses vital ramifications for corporations no matter their trade.
Implications for finance professionals
A number of elements may cause the processing of vendor funds to stall. The primary purpose cited for bill processing delays in our survey was issue securing approvals whereas working remotely (32 p.c), adopted by corporations’ must depend on courier companies such because the U.S. Postal Service, UPS and FedEx (29 p.c). Sudden money circulation challenges and a scarcity of visibility into the bill or fee standing also can complicate bill processing efforts.
Nevertheless, the delays don’t finish there. Thirty-one p.c stated that lower than half of their clients pay them on time. Maybe a part of that may be defined by the truth that many corporations represented within the survey don’t use totally digital fee processes, and practically 39 p.c nonetheless have somebody dealing with their bodily mail within the workplace every single day.
Whereas this actuality gives many alternatives for enchancment and optimization, there are additionally penalties. Bill processing delays may end up in late funds and elevated prices, which can negatively have an effect on the underside line. And firms want the power to rapidly perceive the standing of their invoices to supply one of the best companies to their clients.
Digitizing for development
Essentially the most closely impacted corporations through the pandemic are these whose operations have been considerably disrupted as a result of they depend on handbook processes that require staff to be within the workplace. A few of that’s inevitable relying on the character of the enterprise. However a lot of it may be achieved extra effectively, and just about, with expertise.
Firms appear to acknowledge the stakes and the alternatives. Forty-six p.c of executives in our survey predict that greater than half of their accounts payable and fee processes will go digital subsequent yr. Most leaders additionally stated that almost all of their total operations could be totally digital in 2021.
By effectively automating handbook processes, staff – an organization’s most essential asset – can focus extra of their time and a spotlight on increased worth work that basically drives enterprise development. That permits companies to raised serve one other essential asset for development: their clients.
Denise Leleux is senior vice chairman of provider community of AvidXchange.