Last editedMar 20232 min read
As we move deeper into the digital age, undertaking an accounting digital transformation becomes ever more important for businesses in the financial sector. From modernizing IT and digitizing operations, to making the most of the increasing amount of opportunities that the digital world provides, a digital transformation in finance and accounting is fast becoming a requisite for survival.
In this guide to undertaking an accounts payable digital transformation, we discuss the three pillars of accounting digital transformation. We will also dive deeper into two of the most important aspects of digitizing accounting operations.
Pillar 1: A modernized IT set-up
The first pillar of accounting digital transformation is the modernization of the current IT set-up. This involves upgrading both the IT and the mobile infrastructure, as well as raw data storage, communication platforms and cloud-compatible software. Once complete, the modernized IT set-up will provide your workers with the latest and most up-to-date tools which increase productivity and efficiency, as well as reducing IT maintenance costs.
It is likely that any given business looking at digital transformation in finance and accounting is already somewhere along the process of erecting this pillar, but completing this modernization process in earnest first is what will enable your business to continue on the journey to complete digitization.
Pillar 2: Digitized operations
Digitizing your existing operations means optimizing and streamlining all existing processes through digitization and automation wherever possible. This is achieved through tools such as AI and the Internet of Things, as well as the 5G mobile network.
First identify any and all analog processes that can be digitized. Some may find this step relatively simple, while others may need to re-architect their entire operation. But while that may sound daunting, the process will not only bring your company up to digital speed, but lay the foundations for future growth and adoption of ever-newer and more efficient technologies further down the line.
There are two particular elements of an accounts payable digital transformation which deserve special attention. These elements are:
Marketing is an area where digital solutions are a must to build brand awareness. An accounting digital transformation enables you to develop an omni-channel presence and expand the reach of your business, as well as generate more leads and conversions.
Digitizing marketing during an accounting digital transformation involves investing in technology to capture clean data, as well as employing other digital tools such as AI to analyze the data and better understand your customers and how they interact with your business. Introducing predictive analytics will also help you access more suitable prospects using viral and location-specific campaigns.
Payments are another crucial area where accounting digital transformation can provide a business with massive benefits. With digitized payments continuing to grow in popularity throughout the United States and the rest of the world, it is now imperative that modern businesses undergoing digital transformations incorporate the latest payment technologies into their digitization process.
While not a digital transformation company in of itself, GoCardless can help transform your payments and digitize them to increase payment efficiency while providing your customers with the fast and secure payment options they expect.
Pillar 3: Digitized opportunities
Completing your digital transformation in finance and accounting opens up new opportunities that would not exist if you remained analog. The process enables your business to pivot in new directions and new sources of growth. There can be new products and services which were not possible with analog operations, as well as mutually beneficial collaborations and partnerships.
All of this means new sources of revenue, and unlimited potential for growth and expansion.
We can help
Through the automatic reconciliation of invoice payments, GoCardless can help you control your cash flow, reduce administration and invoicing work, and improve the experience of your customers.
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.