2022 was a tumultuous year, and the risk indicators of a continuing economic downturn are now worldwide.
In Europe, energy shortages and economic sanctions threaten to drive the continent’s inflation higher and increase the risk of a recession. In Asia, lockdowns continue to disrupt economies, leaving countries struggling to sustain positive growth. In North America, consumer prices are increasing at a rate not seen in 40 years. And although the labor market is still strong, elevated inflation, supply chain disruptions, and interest rate hikes have increased concern among economists.
As high-growth businesses wait with bated breath to see if the National Bureau of Economic Research (NBER) confirms that our current economic state is truly significant and sustained, they are turning their attention to their own businesses to find ways to future-proof operations for any potential disruptions.
Economic Uncertainty Increases Technology Adoption
As companies prepare for a deeper economic downturn, technology allows businesses to respond quickly to changing marketplace dynamics.
In tandem with economic disruptions, industry leaders found their own disruptions internally, including budget cuts, hiring freezes, and tough operational decisions. To combat rising uncertainty, many of these leaders have been tasked by the C-Suite to build efficiency, reduce headcount, and retain top talent.
Although many industries feel the brunt of the economy’s fluctuations, automation is seen as a space that is protected from some of the macroeconomic conditions affecting other areas. Industry leaders know this, and in their effort to build efficiency and gain control, they’re reducing manual work and reallocating resources by implementing the right technology now.
Why Leading Businesses Prioritize Payables Automation
Preparing for economic uncertainty relies heavily on your business’s finance function, which is why payables automation is so critical.
From onboarding suppliers to complex global payments, today’s agile businesses are scaling quickly with fewer resources. By evaluating their current workflows and processes, companies have found that automating payables increases the visibility and control needed to save time, cut costs, and prepare for what’s next.
With payables automation, businesses can:
- Automate invoice approvals and cut invoice processing time by 50%.
- Eliminate global operational complexity by automating end-to-end payables and reducing their manual workload by 80%.
- Reduce rogue spending or faulty budget planning and close their books 2x faster.
- Eliminate compliance mistakes by increasing financial controls and reducing payment risk.
- Automate tax form collection with added compliance checks and guaranteed payment security.
- Remove week-long global payment cycles and scale efficiently in 120 currencies across 196 countries.
- Automate partner onboarding and maximize performance with self-service onboarding while reducing manual requests by up to 90%.
While risks and disruptions might be a normal part of doing business, elevating the finance function with payables automation puts your company in a much better position to respond to any changing dynamics.
How One Company Scaled Efficiently to Make the World a Healthier Place
Noom, a science-based app that tracks individual food intake and exercise habits, helps people worldwide adopt better habits through diet, fitness, and lifestyle.
With its unique blend of psychology and technology, Noom was determined to adopt the right automation to future-proof its operations. But as more people benefited from Noom’s unique take on behavior change and mental wellness, the company was growing at an unprecedented rate.
Marc Balcke, Noom’s Corporate Controller, knew that as the company scaled globally, only automation could manage the increase in operational complexity—they needed a solution that would support their passionate user base.
By adopting the right payables technology, Noom was able to:
- Automate invoice approvals and better manage an increase in supplier invoices while eliminating the need for outsourced accounting help.
- Eliminate rogue spending and faulty budget planning by centralizing all payables data and removing unwieldy systems like Google Drive, Excel, and personal email.
- Eliminate compliance mistakes by implementing Optical Character Recognition technology, which streamlined data entry and allowed them to achieve compliance with international supplier requirements.
- Remove week-long global payment cycles and deploy quick and efficient payouts to hundreds of individual partners globally.
- Automate partner onboarding and eliminate the need to hire at least two more employees to handle the increase in partner data.
With payables automation, Noom was able to save two days on their accounting close, add visibility and transparency to their financial reporting, and refocus the existing team on mission-critical work.
With the right technology, I believe finance can support the success of a global organization in a very cost-effective and efficient way.
Marc Balcke | Corporate Controller, Noom
Today’s Industry Leaders are Investing in Automation
As Noom continues to help millions of people meet their personal health and wellness goals, other companies are also defining their industries and leading the charge toward global success through technology.
With 180 countries, 15 million people, and 200,000 locations, Zumba provides an awesome workout for everybody and every body worldwide.
Discord is where the world hangs out, and with 150 million monthly active users, they’re creating a space for everyone to find belonging.
Reimagining the way people come together, Roblox is empowering its 4 million global developers to create new ways for people to connect every day.
And what do each of these leading companies have in common? Payables automation. All of these businesses have been able to scale globally and future-proof their operations with the help of finance technology.
Although the current economic outlook is still in flux, business goals are not changing. High-growth companies like Noom, Zumba, Discord, and Roblox are just becoming more efficient to sustain their growth—they know that the right technology will allow them to withstand any uncertainty that comes their way.
