But First, an Anecdote
In the 2000 recession, an online bookseller sold $672 million of convertible bonds to boost its financial strength. Only one month later, the dot-com industry fell victim to the economic downturn, and over half of all startups went under within the following few years. But that bookseller stayed put and is now the global eCommerce juggernaut we all know today: Amazon.
Twenty-two years later, we’re facing economic uncertainty again. COVID-19 produced unprecedented disturbances in supply and demand, which created financial ramifications. Many challenges lie ahead as companies navigate beyond this difficult period. According to recent evidence, we should expect significant changes in the global economy soon, affecting Europe, China, and the United States.
These changes include an inevitable recession in Europe, U.S. prices increasing at the fastest rate in forty years, and China struggling to sustain positive growth after more than two years of COVID-19 lockdowns. On a global scale, finance leaders are buckling up for these immense challenges by modernizing their finance functions.
The Heavy Currents of Building an Empire
Finance leaders are seen as valued partners within their organization and serve a critical role in stabilizing operations and building efficiencies through unpredictability. To achieve a recession-proof environment, these leaders reevaluate their priorities and embrace challenges—instead of running away from them. They’re pushing their efforts towards improving efficiency and strengthening cost controls to shore up business strength.
To help balance short-term and long-term needs, finance leaders are expected to go beyond traditional accounting responsibilities, being a driving force for the company’s strategic vision. These actions include ensuring the budget is managed and supported via global operational decision-making. They enhance finance operations by providing real-time cash flow and crystal-clear visibility.
Businesses want to gain insight into their payables workflow. They know that by implementing the right technology, they will effectively streamline payment reconciliation across entities, payment methods, currencies, geographies, and workflows.
Fragmented processes and manual operations inhibit finance teams because they burn through critical time and resources while weakening visibility and controls. Traditional growth is riddled with challenges, such as adding resources and systems. These manual workflow processes can prevent companies from satisfying their partners.
According to PricewaterhouseCoopers, â…” of CFOs want to decrease production times for financial data. Therefore, the financial close is one of the most vital processes for a business, especially in the finance department. To effectively scale, businesses handle reconciliation processes to support monthly closes and be prepared for yearly audits.
The New World
Staying calm under pressure is the best mode of defense amidst financial insecurity. Nothing is guaranteed in business, but by keeping processes simple and syncing workflow complexities into one central hub, your company can prevail in unpredictable times.
By streamlining manual processes, companies can gain an advantage over the competition. An end-to-end payables solution allows companies to stay economically bountiful and attract and retain partners. The right solution ensures partners are paid quickly and effectively, reduces fraud, eliminates non-compliance penalties, and accelerates the reconciliation process.
Advocating for Success
By embracing a complete digital transformation in their workflows, finance teams are increasing business visibility, adapting to changing global changes, instating nimble cash controls, and improving the partner experience.
With payables automation, today’s finance leaders can build operational efficiency and stabilize their companies for sustainable success. With the right technology, they can reduce resource requirements needed to run the finance function, stabilize operations, and rapidly adapt to changing market conditions and business needs. Even with economic insecurity, your business can be the next Amazon.
With a smart strategy—and optimism—thriving in a recession is possible.
