Finance Modernization That Delivers
Guest Editorial by Piero Macari, VP Product Corporate Payments, Corpay
Above all, any CFO considering an investment proposal must consider what return it will generate. Finance modernization should be held to the same standard; what tangible, measurable return can an organization expect from investing in the modernization of its finance function?
The most compelling business cases are built on returns that start accumulating from day one, and this is not wishful thinking. Corpay’s research engaged with 300 UK CFOs, and they agreed that finance modernization can deliver this. Not eventually or after a multi-year transformation program, but from the moment payment strategy begins to change.
Liquidity First, Technology Second: Getting More from Modernization
Working capital is often associated with financing and borrowing, but some of the fastest improvements can come from simply changing the way cash flows out of the business. Card-led payment strategies can help extend payment cycles, allowing businesses to hold on to cash for longer while maintaining positive relationships with their suppliers. The result is a practical way to strengthen liquidity with relatively little technology change, a straightforward implementation path and limited upfront investment.
Working capital is a strategic asset. Finance teams with greater liquidity can respond to opportunities quicker, manage unexpected costs more securely and approach investment decisions from a position of greater confidence. Unsurprisingly, 99% of the CFOs in our research said that additional working capital flexibility would be at least somewhat valuable, but getting there requires a more deliberate approach to how payments are executed.
Value Creation Can Start with Every Payment
Payments have traditionally been viewed as the final step in a transaction, but finance leaders are increasingly recognizing that they can represent the starting point for creating additional value.
By bringing eligible expenditure together through card-based payment methods, organizations can unlock rebate income and generate a direct financial return from routine operational spend that would otherwise deliver little value beyond completing the transaction. When CFOs in our research were asked how they would reinvest a 1% rebate on qualifying spend, they prioritized automation, employee development and training.
Taken together, improved working capital and commercial card rebates can turn operational spending into a source of financial value. That value can then be reinvested in further modernization. Payments become a commercial lever, with returns beginning from the first qualifying transaction and growing as more eligible spend moves onto card.
What Is the Value of Reclaimed Time
Earlier this year, we called this hidden operational burden the Manual Tax because every finance team pays it, whether it appears on a budget or not. The hours absorbed by administration across expenses, invoices and supplier payments cost UK finance teams the equivalent of a working day per person, per week. 86% of finance teams are living with that reality right now, according to our research.
The next question is what that reclaimed capacity is worth to the business. When CFOs were asked how they would redeploy time if administrative workload were reduced by 25 to 50%, the answer was consistent: forecasting, strategic planning and business partnering. These are the activities that enable finance teams to make a meaningful contribution to an organization’s overall performance.
Reducing that burden doesn’t require a full system replacement. Instead, it’s structuring spend at the point of payment rather than reconstructing it downstream. When transaction data is captured automatically, reconciliation becomes less labor-intensive, control moves closer to the point of spend, and finance teams gain greater real-time visibility. The result is more capacity for higher-value work, available from the following week rather than the following year.
Improving Access to Working Capital
Finance modernization doesn’t need to start with a major, costly transformation program; some of the most compelling business cases with immediate returns come from a series of more focused and incremental changes that address less traditional finance functions.
Greater working capital flexibility and additional rebate income are within reach for businesses that are prepared to take a more deliberate approach to how expenditure is approved, processed and captured. The benefits can be seen quickly, measured clearly, and are often more accessible than most CFOs expect.
For many businesses, that journey starts with payment strategy. Making modernization pay is about taking a more strategic approach to the movement of money through their organization, giving payment channels as much attention and consideration as they would to other key elements.
About the author
Piero Macari is Vice President of Product Corporate Payments at Corpay, a global S&P 500 corporate payments company. With over 20 years’ experience across blue-chip organizations including Mastercard, GE Capital and leading fintechs, Piero specializes in building technology solutions that enable finance leaders to drive transformation, resilience and growth.
