Digital Transformation

What is Digital Transformation?

Digital transformation, at it's core, is a fundamental shift to digitize a company’s business processes, its culture, and the customer experiences. For the Accounting and Finance departments AP automation solutions are transforming how they do business.

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Accounting Digital Transformation

When it comes to the need for businesses to implement accounting digital transformation there is no turning back! Cloud-based Accounts Payable automation systems have already proven their value. From that perspective, digital transformation is ushering in a lasting change in work and company culture as well, giving us more flexibility and a flavor of what it’s like to experiment with powerful tools.

PwC states that, people in the most efficient Finance departments are already spending 75% of their time analyzing data. Data remains at the heart of the Accounts Payable and invoice processing and payment function of a business and there is no sign of that changing or going away in the near future.

Beyond the increased need and demand for analytics and data visualization solutions, investing in new technologies and digitally transforming the Accounts Payable process has two main objectives: to make data more reliable and to eliminate as many low added value tasks as possible. Document digitalization and process automation have emerged as the tools of choice to address those points. Best-of-breed, complete end-to-end Accounts Payable automation solutions include technology and solutions for both of these needs and many more.

Finance and Digital Transformation are Providing Significant Opportunities in Accounts Payable

Finance and digital transformation are the gateways for new opportunities for many businesses. Automating Finance and Accounting workflows is synergistic with digital transformation. Incorporating tools and software that utilize advance technologies like AI and smart data extraction into the Accounts Payable process enables Accounts Payable staff to enable focus on creative and strategic work, adding more value to the organization.

Digital transformation of the Finance department affects all aspects of a businesses’ financial services which makes the change, and it’s benefits hard to miss once implemented.

How is Accounts Payable automation is changing, and is expected to continue to change in the future?

“It will be unrecognizable! Digital, data driven, and strategic. Stakeholders will unlock the value of AP automation and leverage it in more ways than ever. CFOs will believe that if they optimize the AP process, they can better manage cash, control spend, and mitigate risk. All helping drive larger corporate objectives.”

– Mark Brousseau, Institute of Finance Management (IOFM) Spokesperson, Consultant, and AP Automation Subject Matter Expert

What Accounts Payable Digital Transformation Means for CFOs

Technologies like Accounts Payable (AP) Automation, artificial intelligence, predictive analysis, blockchain, data visualization, and machine learning enable a very pragmatic approach to accounts payable digital transformation.

As Finance departments are beginning to incorporate digitalization in their invoice processing and payment workflow they are indeed driving digital transformation, for two main reasons:

Finance departments’ operation is central to the organization's processes.
The CFO’s responsibilities are changing as we progress through the digital age for business.

"Progress brought by digital technologies today is different from changes induced previously by mechanical and electrical revolutions. Digital technologies change the entire value chain for companies, as well as business models and even exchanges between players."

- François Lacas, deputy COO at Yooz in the article "The CFO's Crucial Role in Digital Transformation : François Lacas Interview"

Finance Leaders and AP Managers Key to Digital Transformation Strategy

Although digital transformation is unavoidable, has plenty of benefits, and many companies are onboard to start the implementation process, most think the best way to achieve success with digital transformation is by diving in headfirst without a digital transformation strategy. In reality, having a strategy is just as important as picking the right Accounts Payable automation tool and the benefits you gain will not only affect your profitability, but your company culture too.

"Digital success isn't all about technology."

Key components to digitally transform your Accounts Payable department the right way:

A shift in mindset of the whole business needs to be a priority. This starts with a consistent vision, strong values, and passion for the business and ends with the daily implementation by employees.
Experimentation often and early on in the transformation efforts. Encourage trial and error, learn from failures, and keep an open mind for new ideas to make your business more agile.
Accounts Payable automation drives changes for your business. Automating your invoice and payment process with complete and advanced software becomes a catalyst for digital transformation because it gives the Accounts Payable staff freedom for more value-added tasks.

Make no mistake even with the right mindset and buy-in from the entire organization digital transformation is still not an easy task. But that is why it’s so important to create a strategy in advance to transform the way your company does business.

Digital Transformation Means More Than Going Paperless

Many organizations realize that knowing the answer to “what is digital transformation” is the foundation to developing a successful business. However, thanks to financial leaders, they also realize that automating and streamlining the accounts payable process is key to their success.

Digitally transforming the way that your business handles the entire AP process from procurement to payment with automation will at the very least:

Save significant time and money
Provide valuable insights about cash flow and cash management throughout the entire company
Provide actionable intelligence about the overall health of your supply chain
Become the driver for cultural change, encouraging employees and entire teams to create new business value that benefits both them and the business as a whole

Better, Faster, Stronger: The Nine Secrets of AP Transformation

Digital transformation is not just for R&D and strategic planners. It reaches in to every aspect of your business particularly the back office functions like Accounts Payable.

No matter what size a company is, AP transformation is possible, desirable and affordable.

Successful AP transformation can be broken down into nine main factors of the invoice and payment process that are improved by going digital:

Cost
Time
Exceptions
Hands-Free
e-Payments
e-Invoices
Automated Matching
End-to-End
Financial Intelligence

Ultimately you should be asking yourself: "How can I use digital transformation to get the best possible ROI for our AP operations?"

Digitalization in Finance: How Purchase-to-Pay Automation Future-proofs Your Business

It’s becoming clear that the business implications of the global pandemic will be felt for years. But crises also have a flipside. They are a shock to the system that force a reset and trigger changes with positive outcomes for the future. That’s certainly the case for finance departments and the financial services they rely on.

Accounting teams have been forced to deal with work-from-home mandates, skeleton staff, and a backlog of purchase orders, invoices and delayed payments. In many cases, they even had to deal with serious cash-flow issues. The flipside is this: digitalization in finance is finally in full swing as a viable strategy to improve performance.

The Six Benefits of Electronic Invoicing

Digital transformation is a long-time relevant topic. However, with the increase in remote working and greater demand for temporary short-term workers, companies of all sizes in every industry are rapidly becoming more aware of the importance – and necessity – of an efficient back-office function.

Electronic invoicing (e-invoicing) is a key component of AP departments becoming an efficient and strategic operational engine. The benefits of electronic invoicing – for everyone - go far beyond speed, productivity, cost savings, and even deep financial intelligence that can be leveraged across the entire organization

Do Better with Bots: Digital Solutions for Financial Services

Robots are everywhere but they don’t have to replace humans; they can actually create jobs by making business more efficient. Putting into place a digital transformation will supercharge financial services, whether it be in banking or the accounts payable department of a small business. Read more about how digital solutions for financial services will help speed up operations, create cost savings, drive profit, and make the work environment altogether more appealing.

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