B2B Spend Management Is Examined Closer Amids Economic Clouds

The economic uncertainty that characterized 2022 will continue to drive digital transformation in 2023.

FREMONT, CA: Given the size and significance of the business-to-business (B2B) payments category and ongoing management focus on financial health, many companies are still trying to maximise revenue.

The success of a plan depends on the quality of the data, which is crucial for a CFO trying to forecast future revenue streams and a treasurer building a liquidity management model. Many businesses lack the tools and knowledge required to extract crucial spending and payment data and turn it into useful insights. Everything that enables improved decision-making is at the core of the data that exists within companies. The need for businesses to prioritise data, data governance, and strategy if they want to realise the full potential of their data. Historically, and very commonly, companies do not have a data strategy or data governance models to harness that data and to be able to layer on the tech that's available to drive better decision-making.

2023 May Shake Out the Tech Agnostics

 The impulse to save and preserve is stronger than the temptation to spend as the new year approaches, and businesses are confronted with a variety of ominous unknowns, including high inflation, economic volatility, rising interest rates, and potentially even a recession. Because of the uncertainty, firms are rethinking how they use their resources, including data and technology, in some sectors to increase and stabilise revenues. This also indicates businesses are scrutinising their costs and searching for methods to maximise profits while reducing unnecessary or frivolous spending.

 To navigate and endure what is coming, which is full of uncertainty, businesses realise the criticality of enabling technology. The only way to deal with that unpredictability is to have a tonne of reserves on hand so that you feel at ease no matter what happens. In addition to being a wise move, using technology to promote cost efficiency is now essential.

 Businesses using outdated techniques to manage B2B payments and expenses may find themselves at a crossroads because their rivals are using modern technology to strengthen their position.

 Companies strive to optimise their processes to significantly outperform their rivals. Additionally, the current atmosphere and available technologies make it simpler than ever for businesses to achieve this.

 Evaluating Technology Through a Financial Lens

 There is a single strategy to succeed on all fronts for firms looking to increase revenue, improve decision-making, and increase their competitiveness: committing to digital transformation across data, operations, and accounts. To extract greater value from an established company model, leveraging technology and being able to think about it from a financial perspective is essential. It promotes accountability, preventive controls, and the capacity to manage spending before it occurs. It also drives visibility.

 Most competitive businesses are now concentrating on modernising their operations through digital means, from data management to spending tracking.

Digital transformation is a top focus for these firms. Those who haven't yet embarked on that path must confirm that this is what they are doing. Now, for it to be successful, it is imperative that teams that will be required to use this new technology be upskilled. To be able to use the available technology, I believe that employees' skill sets need to be given priority.