93% of companies digitizing AP / AR functions
The roles and responsibilities of ‘C-suite’ executives change on a basis that seems to be daily amid the big digital changes that businesses large and small must go through as they modernize their back office operations.
These digitization efforts extend in particular to the accounts receivable (AR) and accounts payable (AP) functions, which are critical to managing cash flow and, in turn, maintaining the long-term health of the company. the company itself.
In the latest PYMNTS study, The Strategic Role Of The CFO: How AP And AR Digitization Are Transforming Customer Relationships, conducted in conjunction with Versapay, data shows that 93% of US-based companies have overhauled their accounting operations. Break it down a bit, and 57% of those executives who invest in new technologies and processes say the goal is not only to automate certain functions, but also to transform those operations in order to bring new capabilities to their businesses. – including transparent payment capabilities.
The reasons for digitization are varied. Almost 96% of the companies surveyed stated that they had taken these initiatives with the aim of benefiting customers or suppliers. And 37% said they did so to be able to process transactions faster; nearly 15 percent said their goal was to make transactions cheaper.
As they digitized their operations, these same executives said they relied less on paper check payments (as 40% noted). Up to 55% of those surveyed said they used ePayables with virtual cards more frequently.
The redesign and technology investments are being made to serve larger goals, CFOs said. Main of them: increase the overall value of the life of customers.