Pandemic has made digital payments embracing and insightful. The number of corporate evolution and the back-end processes was possible due to the same.
Though, there are still pockets of operation and APs that need improvement. It brings concerns in extension, visibility into cash flows. It is more like peeling back the onion. The companies may not be as digital-savvy they appear to be.
21% of CEOs at the largest company refrain from usage of digital payment. They already have a robust system in place. The word digital holds a different meaning for a different person.
Matt Clark, who is the CEO and President of Corcentric, said, “it’s possible to get to at least some level of scale, doing things the old-fashioned way by relying on manual activities and even paper-based purchase orders, invoices and checks. In some cases, there can be some exaggeration in the mix, where executives might claim they are more forward-thinking along the tech curve than they are.”
Small firms are the ones that take enjoy digital payments. 70% of smaller companies look for those benefits. The resource-constrained outfits are not the reason for the issue. No firm is too small to evolve digital payments.
The size, volume, complexity, and market waves hold zero or no importance. The firms are responsible for grappling. The pain points exist in their day-to-day operation. The digital initiative came up short.
The recognition is high compared to the time before. There are inefficiencies in digital payment. CFO surveys addressed that working capital is an important factor. It is for the healthy balance of sheets.
The cash flow impact on the firm’s back end is also the reason. We can say what digital payment needs are the right procurement strategy. Digitization will bring better visibility. It is about the day sales outstanding.
The inefficiencies are inherent in the traditional process. It is time to bring advance changes in digital payments.