We now live in an age where almost everything has a digital alternative. Tagging onto the bus without cash on the way to work is the norm and almost everyone conducts their banking on the internet.
For businesses, the digital age represents an opportunity to adopt new technology and take advantage of the inherent productivity and financial benefits. This was confirmed in a recent report titled B2B Payments: 2015 Australia and New Zealand Research published by Deloitte Australia.
Surveying 150 medium and large businesses in both Australia and New Zealand, Deloitte focussed on the role of digital payments and invoicing. According to the results, businesses that take advantage of digital account payments and cards can experience 70 per cent higher cost efficiency when compared to the traditional purchase order process.
In fact, by taking the digital route, 73 per cent of businesses enjoy improved cash flow and 63 per cent have access to better data useful for analytics.
Payments Director with Deloitte Richard Miller explained digital account-based payment systems are widely thought of as faster and cheaper among the organisations surveyed.
"Businesses and government organisations are increasingly looking to such digital solutions to improve productivity and reduce the time between invoicing and receiving payment," he said.
"As a result of digitisation opening up more opportunities, spending on card-based B2B payments has grown significantly since 2011."
Visa sponsored the report and its Head of Product in Australia, New Zealand and South Pacific Rob Walls agreed with the findings.
"B2B payments are rapidly changing as the shift to digital accelerates. There is still a substantial opportunity for businesses of all sizes to adopt more efficient ways to pay and be paid," he stated.
Could digital options promote invoice payment times?
Having the option to make payments through digital channels is a real time saver for businesses today. This then poses the question: Could invoice payment times improve with more businesses embracing digital technology?
According to Dun & Bradstreet's Trade Payments Analysis from June 2015, many organisations would certainly hope so. Based on the figures in this report, just 56 per cent of all commercial invoices are paid on time in Australia.
Faster payment times would also improve cash flow and allow businesses to concentrate on other areas of their operations.
At Oncore Services, we are focussed on the future and this means digital solutions. Contact us today to find out how we can bring your payroll, time sheet and invoicing processes into the 21st century.