If the COVID-19 pandemic has taught us anything, it’s that business operations needs to be early adopters of technology to overcome digital transformation challenges. Traditionally, finance and operation teams tend to be more conservative when adopting platforms, so that controls and bugs are properly vetted, however – in our new remote world, we need to be as connected as ever. “An AvidXchange survey of 500 businesses found that since the pandemic began nearly three out of four businesses (74 percent) have added new technology to enhance work, reducing pressures and creating agility as they navigate a rapidly changing work environment.”
Marcus Wagner, AcctTwo’s Founder & CEO, talked about this on a recent webinar: Bolster Business Resilience with a Proactive Plan. On the webinar he spoke about Geoffrey Moore and Crossing the Chasm. In the book, Geoffrey said that new technologies are adopted by the innovators and early adopters and those are the people that are willing to adopt a technology that might be in the early phases and not fully baked. They like to take risks with innovation and new technologies. As the technology is commercialized and further along, you cross the chasm into the early majority/the bulk of the market. The late majority and the laggards follow after all the bugs and the system are perfected. For a long time, the best risk management strategy was to be a late majority or laggard. As it turns out, the COVID pandemic has proven that strategy ineffective. Digital transformation has gone from optional to urgent - accounting and finance are included. They are critical to how a business operates.
Our friends at AvidXchange recently released a whitepaper: Finance Leaders Adjust Strategies to Come Out Stronger in Extraordinary Economic Times. In it, they talk about the extraordinary economic conditions now unfolding, and how finance professionals are seizing the opportunity to make improvements, rebuild, and come out stronger. Businesses are focused on improving their processes – this includes making and receiving payments. With remote employees, companies are starting to explore how their teams can sustain operations and work more effectively regardless of where they are. A recent Gartner report revealed that “82 percent of companies plan to offer employees the opportunity to work remotely at least some of the time after the pandemic ends, and nearly half (47 percent) will allow their employees to continue to work remotely full-time.”
Highlights from AvidXchange’s Finance Leader Whitepaper
Whether companies give their employees an option to work remotely, return to the office or offer a hybrid model that includes both, one thing’s for sure— our new workplace normal needs some fine-tuning.
- Since the pandemic began, phishing attacks have been on the rise. Payment fraud is also up 20 percent and credit card fraud has increased by more than one-third.
- IOFM’s most-recent study of more than 400 AP departments found that fewer are paying their bills on time.
- Before the pandemic, roughly half of vendor payments were made via paper checks, an expensive, risky and inefficient process for AP departments. Now, vendors are asking for electronic payments because they don’t want to come into the office, touch potentially hazardous mail and then drive to a bank.
- Goldman Sachs recently estimated businesses in North America spend $187 billion per year on payment processing costs, sacrificing $22 to pay a single invoice with a paper check.
Download the Whitepaper
Download the whitepaper "Finance Leaders Adjust Strategies to Come Out Stronger in Extraordinary Economic Times," to read more from AvidXchange and the Institute of Finance & Management. Download here >
AvidXchange is the industry leader in automating invoice and payment processes for midmarket businesses. Founded in the year 2000, AvidXchange processes over $140 billion transactions annually across its network of more than 680,000 suppliers, transforming the way 6,000 customers in North America pay their bills. AvidXchange is distinguished as a global fintech unicorn and one of the fastest growing technology companies in the U.S. with 1,500 employees supporting customers across seven office locations. For more information about AvidXchange, visit www.AvidXchange.com