The economy may be on a roll, but CFOs are anticipating a slowdown by the end of next year.
And that means CFOs and other senior finance executives will be counting on accounts payable to provide the reporting that they need to effectively manage the business’ cash and spending.
CFOs overwhelmingly expect a downturn in the U.S. economy by the end of 2020, per Deloitte’s latest quarterly survey of CFOs representing many of North America’s largest and most influential companies. U.S. trade policy, business and credit cycles and the impacts of slowing growth in China and Europe are the top reasons that CFOs believe that an economic slowdown is in the cards.
While most CFOs believe that an economic downturn is more likely than a recession, they will need ways to closely track key financial metrics to help them navigate the economic downturn – things like Days Payable Outstanding (DPO), percentage of invoices paid to terms, early payment discounts offered, percentage of early payment discounts captured, spend by supplier or category and accruals. There is no question that poor visibility into financial data exacerbated the 2008 credit crisis for most businesses in the United States. It took years for these businesses to regain their financial footing.
The CFO’s Guide to Transforming Accounts Payable into a Profit Center
Learn how automating supplier payments can lead to lower cost, faster cycle times, and enhanced cash flow visibility.
Automating Payments to Suppliers Provides Visibility and Control
Automating payments to suppliers provides CFOs and other senior finance executives with the visibility and control over accounts payable data they need to navigate any economic waters.
Leading electronic payment solutions provide reporting and control features such as:
- Aggregation of data on approved invoices from any office or business unit
- Intuitive real-time disbursement dashboards for managing cash better
- Linking of multiple bank accounts for funding supplier payments
- Automatic reconciliation of supplier payments for improved cash reporting
- Automatic review of suspicious payments for mitigated risk
If you are struggling to win CFO or senior management approval for your electronic payment initiative, these are the types of visibility and control features that are sure to pique their interest – particularly if they are among the CFOs that anticipate choppier economic waters ahead.