Every company needs to purchase goods and services as part of their day-to-day operations. These might be business travel and entertainment expenses, marketing budget spent on sponsorships or digital advertising, or physical asset purchases – such as IT equipment. All of these purchases have to be processed, which makes efficiency and cost effectiveness key priorities for the treasury team – especially during the challenging business environment created by the COVID-19 pandemic, where cost savings are even more valuable than normal.
Traditional payments – such as automated clearing house (ACH) or real-time gross settlement (RTGS) payments– rely on processes that are not fit for the digital age. Manual invoices can often be the norm, which have to be posted or couriered to a client, and passed from department to department, before securing final approval for payment. Not only is this time consuming, there are risks that the invoice could be lost, which could bring the whole process to a halt and cause a late payment.
Furthermore, paper-based payments leave information scattered across multiple documents, making it hard to complete relatively straightforward reporting, and as a result complicating budget management. Spending analysis and working capital optimisation can also be difficult to conduct.
Commercial Cards are an easy-to-implement method for corporate procurement and treasurers who are looking for efficient alternatives to traditional payment options. By taking advantage of the full range of functionality that Commercial Cards provides, a procurement and treasury department can replace manual processes with more efficient digital alternatives, quickly making significant improvements to procure-to-pay process and operational costs.