Digitizing Account Payable and Account Receivable Reduces Business Costs

Economy post lockdown is encouraging businesses to digitize their Accounts Payable (AP) and Accounts Receivable (AR). 90% of the Chief Financial Officers that participated in a survey claimed digitizing their AP and AR made business operations more effective. Further, 62% said digitizing payments helps them cut costs, and improve data security. On the other hand, 60% of respondents said digital payments helped them in building relationships with suppliers. 

A Closer Look at Businesses Supporting Digitizing AR and AP 

Digitization of AP and AR benefits small and big companies alike. Here’s what small, medium, and large scale businesses have to say: 

• PYMNTS data states that 62% of large-scale businesses said digitization in payments helps in cutting costs.
• Similarly, 60% of medium-scale industries said digitizing payments helps lower operational costs.
• Furthermore, 57% of small-sized businesses promote digitizing payments for smooth operations. 

Key Benefits of Digitizing Payments Processes

“Optimized B2B (Business to Business) digitization serves as a growth booster- and it secures your ecosystem” Chief Operating Officer Mark Clark and Corcentric President told PYMNTS. 

Most respondents said digitizing payments help their businesses in the following ways: 

• Medium to small scale businesses ease their administrative burdens by adopting digitizing payments 
• Digital payments come with high-level security that stores payment data in encrypted form. 
• Digitizing payments improve cash visibility and flow, companies get payments to their bank accounts directly without any delay in payments. 

Conclusion 

The decision to digitize AP and AR during the last two years has set many businesses to profit from the pandemic-driven economy. Many companies are hoping to move forward with more effective and low operation costs that also offer them to raise the level of interaction with suppliers and clients. Among too much uncertainty about the upcoming economic conditions, one thing is certain- companies will continue to practice new trends and will be powered by a much greater share in digital payments.