Are your accounts receivables still reliant upon checks? Are your business processes still heavily manual, receiving payments by mail and dependent upon teams to prepare deposits and reconcile manually? Several macro-economic trends indicate that organizations now, more than ever, should be utilizing electronic payments. Not only to minimize manual processes and reduce costs, but to please customers who prefer the convenience. The added bonus of getting paid faster will delight finance teams who are focusing on cash flow.
Here are three economic trends signaling it’s time for companies to transition to digital payments solutions:
- Customer Expectations
Customer expectations are rapidly evolving, and organizations that don’t keep up put themselves at risk. Click-to-Pay options, customer payment portals for self service, online shopping, mobile banking, and on-demand services have led consumers to expect instant gratification for their behavior. The move towards an online, self-service environment in all aspects of people's interactions indicates that organizations should explore such solutions for their business.
- Millennials in the Workforce
Millennials are the largest generational cohort employed in the workforce. Their experiences and how they operate in the workplace play a significant role in shaping business today. Process-heavy roles are no longer desirable, and filling those roles will be near impossible for organizations that don’t commit to change. Steering your processes away from being manual and paper-based to a more automated and digital environment will benefit you as an employer.
- Remote Workforces and the New Normal
Consider the present environment we find ourselves in with a sudden shift to a remote workforce: This makes a traditional check payment collections process both a safety risk and a logistical incovenience. With work-from-home measures in place for many for the foreseeable future, transitioning to an eInvoice payment process is critical.
Risks of Not Offering Digital Payments
Of course, on the flip side, there are reasons some companies would choose to keep their systems in place... the main being the time and commitment to make the changes, which may grow depending on the size of the business. Choosing not to offer digital payments to your customers, however, presents two crucial risks that can impact the overall health (and wealth) of your business:
- Customer Power Shift Resulting in Revenue Loss
In today's economic environment, customers hold the bulk of negotiating power, oftentimes making purchases based on it being the most convenient option, knowing it was cheaper elsewhere. If your business processes make it difficult for your customers to do business with you, they will take their business elsewhere for a more convenient experience.
- Operational Challenges
Cumbersome payment processes require multiple steps and manual effort to deliver a quality customer experience. Paper and labor resources can be costly to your business. Margins are tight in today's economy, and trying to grow and scale a business using manual processes of any kind is not sustainable. Non-digital payments and invoicing introduces lags to your processes and slows down the speed at which you get paid, driving up Days Sales Outstanding (DSO), reducing cash flow, and limiting the agility of your operation.
Invoicing Solutions Integrated with NetSuite
Solupay provides a simple transition for companies using NetSuite that want to shift to a seamless, digital invoicing solution. Our eInvoice-2-Cash and eStatement-2-Cash integrations make it easy for customers to pay you. Watch our video to learn more about invoicing solutions for NetSuite SuitePayments: