As the World Economic Forum has noted[1], the mid-market enterprises (turnover of between $50-$500 million) that constitute 60% of North America’s GDP urgently need to re-tool for growth in the digital era. This means, among other factors, that they should transform their accounting operations to drive efficiencies and accelerate cash flow by adopting a new, collaborative approach to accounts receivable (AR) .
Seize the digitization opportunity in accounts receivable for optimum performance
Versapay CEO Craig O’Neill argues that North American mid-market enterprises should move beyond automating accounts receivable (AR) processes to viewing digitization as a transformative exercise that creates new and better capabilities and delivers improved performance.
Doing so will deliver a quantum difference in terms of productivity, ease of payments, enhanced transparency and collaboration with customers, and other benefits.
What’s more, mid-market enterprises will also free up existing AR personnel to perform work that’s more strategic and has greater impact, improving employee retention and offering better career prospects.
We argue that —while 90% of North American companies are now on the road to full digitization—the nature and extent of that digitization is crucial.
At one level, digitization is happening because it allows mid-market firms to automate many inefficient processes and realize significant gains.
The more exciting opportunity, however, lies in transforming AR processes to improve collaboration and communication with customers and suppliers.
By creating new opportunities to work together and share information, mid-market enterprises will establish better customer relationships, create more efficient processes, and improve the growth potential of their business.
In our new white paper, “Transform accounts receivable for massive efficiency gains”, digitization has proven benefits in terms of reducing the time, labour and expense associated with the accounts receivable function.
It can lower error rates, accelerate time to payment and decrease the volume of late payments. Digital transformation also delivers a step-change in back-office performance, and much improved customer service.
Fully digitized AR management
That said, companies opting for a next-level, cloud-enabled, fully digitized AR management system can go beyond these obvious benefits.
For example, it’s possible to ensure that all parties have access to the same information—invoices and supporting documentation, disputes and ongoing conversations, payment histories, and more—through the cloud.
This leads to massive gains in efficiency, accelerated cash flow, and exceptional customer experiences.
Advanced, full-scale digitization also allows companies to assess customer payment patterns on a case-by-case basis to reduce chargebacks and lower the risk of late, inaccurate or unpaid invoices.
By harvesting rich data from fully digital AR systems, companies can improve their resource planning. They can identify seasonal and cyclical patterns in revenue, average payment times and delinquency rates.
With the IMF signalling 1950s levels of economic expansion in the US and Canada for 2022 and 2023, now is the time for North America’s mid-market enterprises to think boldly about the future direction of their back-office systems. Those companies choosing to transform accounts receivable with a fully automated, cloud-based approach will reap incremental gains and position their business for a step-change in current performance and future potential.
To find out how your company can transform accounts receivable for massive efficiency gains, click HERE.
[1] See: https://ustr.gov/trade-agreements/free-trade-agreements/trans-pacific-partnership/tpp-chapter-chapter-negotiating-8
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