Establishing Value: Account Payables’ Tech Priorities for 2016

The functional area of accounting has been in the midst of an exciting transformation. AP technology has been a game-changer for a department that’s been traditionally regarded as operational: transaction-based and simply one of the working cogs of the business machine. Software systems, both in-house and cloud-based, have given today’s AP and AR professionals the tools they need to reach levels of efficiency that simply weren’t possible using the offline, manual workflows of yesterday. The result is value that can be seen in more than the bottom line.

On the Path To Automation

Automating workflows—or an entire set of processes that redefine a department’s productivity—isn’t automatic. Most companies start with implementing new tools that tackle their most pressing day-to-day issues before moving on to bigger-picture items. Ardent Partners’ 2015 State of B2B Payments report unveils deep insights into the challenges AP professionals are solving with technology.

Investments already made by the study’s “best-in-class” subjects have ensured the following capabilities:

• Make electronic payments
• Capture early payment discounts
• Provide rich remittance information to suppliers
• Provide access to web-based self-service supplier portal
• Process invoices straight-through
• Supply chain finance program

And changes the entire survey population expects to see in AP between 2015 and 2017:

• The amount of paper will significantly reduce – 88%
• AP staff will move away from manual tasks – 86%
• The AP process will be largely automated – 82%
• AP will be key to capturing more early payment discounts – 53%
• AP will play a key role in supply chain finance initiatives – 51%
• Increased involvement in cash management/working capital – 48%

Finding and Demonstrating Value

Technology investments over the next couple of years will enable AP departments to meet their automation goals—but what that really means is achieving value derived from:

• Streamlined Operations – Cost and process savings resulting from automation are just the tip of the iceberg. When AP employees aren’t spending their time keying transactions into multiple systems and shuffling down various paper trails, they’re free to focus on less tactical (and more strategic) projects.
• Actionable Transparency – Automation yields increased access to data that can be used to inform financial decisions—and information that crosses departmental barriers. Treasury and procurement executives, for instance, come to rely on the insights coming out of AP to manage cash and optimize budgets.
• Strategic Partnerships – Aside from helping to securing accounting with a more strategic role within the company, automation technology enhances supplier relationships. This can result in better customer service, faster payments, steeper discounts, and a palpable competitive advantage.

For a comprehensive look at Ardent Partners’ industry analysis, explore their 2015 State of B2B Payments report. You may also be interested in:

ePayment Solutions: When the Easy Answer Isn’t So Easy
Exploring AP Technologies: Complete Procure-to-Pay Solutions
Exploring AP Technologies, Part 1: Supplier Portals