Finance Transformation Can Accelerate Business Growth
Back-office functions may too often be overlooked as a path to greater revenue and strategic planning.
It’s anybody’s guess what the economy holds for businesses but the trajectory is still on an uphill climb, business confidence is still running high, and companies, especially SMBs, are looking to increase hiring. There are some signs for concern, but regardless of what direction the economy takes, every business is under increasing pressure to maximize efficiencies, optimize business processes and reduce costs. The problem is companies aren’t always looking in the right places to accomplish these goals.
This week, PYMNTS.com posted an article featuring Corcentric’s President and COO, Matt Clark, in which he discusses how companies can find their growth stalled by not focusing on the automation and digitization of their back-office functions, like AP and AR. According to Matt, “Businesses very much focus on their core competence activity, and focus on making sure they keep production levels where they need to be. Usually, the back office, where payments come in or go out [is the] last to be addressed.”
Once companies decide to take a look at transforming their back-office financial functions, they need to find a solution that best suits their needs, not a one-size-fits-all solution. That’s why Matt indicates that companies need to partner with a provider who will delve into the data, provide analytics, and identify trends that will inform the company where opportunities for increased revenue may lie or where the greatest amount of financial friction is occurring.
Digital solutions for procurement, payables, and receivables have been around for quite a while and companies may find it difficult to ascertain which one is right for them. Up to now, many companies have implemented solutions for these varying functions in a piecemeal way. As Matt notes, “Companies might implement a procure-to-pay solution separate from a payments solution separate from a procurement tool.” These siloed platforms may address the major issues and concerns of each individual department; however, in order to achieve their overall goals, companies need to take a holistic view of financial processes. Doing this will enable them to identify those areas throughout the procure-to-pay process that, once improved, may have the greatest impact on efficiencies, costs, and supplier relationships.
What is clear from this article is that businesses do not have the luxury of simply relying on the status quo when it comes to transforming their financial functions. For those that do, Matt has a warning, “The one step that companies cannot afford to take is to do nothing.”
Read the full article for more details.