CFOs and controllers fully understand that a lack of visibility into invoices and payment information is the biggest AP challenge. So what are the fixes?
When it comes to Finance, nothing is more important than seeing the whole picture; having 24/7 visibility into transactions and analytics. The value this knowledge provides is detailed in a recent whitepaper,”5 Ways Senior Executives Are Improving Visibility Across the Procure-to-Pay Cycle,” published by the Institute of Finance & Management (IOFM) and sponsored by Corcentric. The whitepaper cites a survey of CFOs conducted by the Aberdeen Group that found a full 78 percent of respondents identified that improving visibility into their cash flow and cash management was a top priority. IOFM found that visibility was also a top priority for controllers; so much so that 45.4 percent of them said that a lack of visibility into invoices and payables information is the biggest challenge in their AP department.
What’s clear is that manual processing and paper invoices are not only inefficient and costly; they also offer as much visibility as a foggy day in London. The whitepaper describes how this lack of visibility affects all parts of the procure-to-pay process…procurement, invoice processing, and payment. It then identifies and details the five ways companies can improve that visibility from start to finish – by adding automation to the finance processes. In fact, the figure below shows that finance executives fully see that visibility is the primary benefit of accounts payable automation.
So what are the five magic components a robust AP automation solution will have that will help improve visibility?
- Electronic Purchase Orders
- Invoice Processing
- Electronic Invoices
- Electronic Payments
- ERP Integration
According to the white paper, “An end-to-end solution containing these components will enable senior finance executives to more accurately forecast cash flows, make fluid operational and cash management decisions, more easily analyze spend patterns, track key metrics, and strengthen enterprise reporting and regulatory compliance.”
Get a free copy of the whitepaper.