But the prospect of faster business growth creates new challenges for CFOs, particularly those at mid-sized businesses with between $50 million and $500 million in annual revenues. CFOs must develop strategies to support growth while managing finance complexity and keeping costs in check.
More CFOs are meeting these demands by automating payments to suppliers to increase profit margins, capture more early-payment discounts, earn cash-back rebates on supplier payments made via card, and gain real-time visibility into outbound cash flows and corporate spend.
The Necessity of Accounts Payable Process Automation
Payments automation is moving from a “nice-to-have” to a “must-have” in the eyes of CFOs.
- eliminating the cost of paper checks from Day 1
- earning an average 18 percent annual return from early payment discounts
- capturing tens of thousands of dollars annually – and in some cases, hundreds of thousands of dollars annually – from cash-back rebates on card transactions
- reducing their borrowing costs by standardizing their payment terms
- improving their budgeting and forecasting with real-time payables visibility
As evidence of the rising importance of accounts payable, consider that 58% of CFOs rate accounts payable as having “high value” and being a “critical component of their business,” per the Institute of Finance and Management’s (IOFM’s) Senior Finance Executive Survey. This is a sea change from the traditional perception of accounts payable as a tactical, back-offline function.
This white paper provides CFOs with a guide for transforming accounts payable into a profit center.