You will have to act on the economic consequences of the COVID-19 epidemic. Apply strategic reasoning to come out of it stronger and more competitive. The Corona crisis has now been declared a global pandemic by the WHO, and it is severely impacting the world economy. Some companies, like event organizers and skiing resorts, had to close down their activities altogether, others face supply chain and delivery problems, travel restrictions and quarantines for their employees. The slowdown of global economic activities will hurt most companies.
Corporate Finance and Treasury will feel the Pressure
Suppliers will demand timely payments while customers will delay payments as much as possible. Disputes and collections will rise, as more unpaid invoices impact liquidity. Experience from previous crises shows that they bring all kinds of fraudsters onto the scene, further increasing business risks.
Foresight, Insight and Protection
Companies must react to the crisis on many levels, from office hygiene to remote work and meetings, IT continuity, to ensuring liquidity and correct financial transactions at the right time. Here, we focus on decisive action companies must take in their financial operations.
Companies that have real-time insight in their cash situation, with the planned or foreseeable accounts payable and accounts receivable, including any special conditions (rebates, terms of payment, etc.), have a competitive advantage over their less “clairvoyant” competitors. The same is true for companies that have digitized and automated financial processes, and those that are able to swiftly identify fraudulent claims. They can optimize automated payments for maximizing cash, but also for strengthening supplier relationships.They may get through the crisis in a better condition and with a head-start before their less fortunate competitors.
If you are not in such an enviable situation, you may be rather be in “survival mode” right now than on the starting blocks for a new IT project before the end of the Corona crisis. But if you have already gone through the initial rounds of preparing for such a project, the urgency of the moment may get you broad support to get it started right now. Beyond the objectives of short-term urgency, your organization will move to the next level of intelligent process automation and standardization. Acting decisively in this crisis will bring lasting benefits, ensuring your competitiveness at the restart of the economy.
Invest to Benefit from Digitized and Automated Processes
According to Serrala SVP, Brian Shannon, there are two dimensions to the benefits from investing in digitized and automated processes, apart from real-time insights into the financial situation of the company:
- Reduced cost: Optimizing and automating processes eliminates tasks with little or no added value and streamlines operations, resulting in lower costs and greater scalability.
- Transparent Cash: In an economic slowdown, companies need to extract as much cash out of their working capital sources as they can. They can do so with the right visibility and optimized processes.
With all the turmoil, there is one piece of good news: Companies can act proactively right now in order to keep moving their business forward. From preserving vendor credit lines to the effective monitoring of the accounts receivable balance to more attention with regards to billing and shipping accuracy.
How We can Help You
The Serrala Universe of Payments portfolio provides exceptional transparency, as well as automation and optimization of working capital, including accounts receivable and accounts payable. It also makes fraudulent claims easily detectable.
Our customers stand a good chance to go through the current crisis in better condition than their competitors. We have taken all the necessary steps to support them without interruption throughout the crisis. And they will be in good shape to compete in the post-crisis economy.
It’s Time to Get Started
If you have any further questions on how your individual future roadmap could look like, do not hesitate to contact us.
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