DiscoveringValue with Accounts Payable: 5 Trends Every Finance Team Should Know in 2023
Fighting to survive economic stormsahead, CFOs are tightening budgets and prioritizing investments that reduceleakages and drive the business toward becoming more intelligent and efficient.
One area where CFOs can significantlyimpact is Accounts Payable (AP), the function responsible for processing andreconciling supplier invoices, managing payments, and controlling expenses. Byembracing emerging trends and best practices in AP, finance teams can savecosts, unlock strategic value, and enhance collaboration across the enterprise.
Here are the Top 5 trends that everyfinance team should know in 2023 to stay ahead of the curve:
1. AP Automation: From RPA to AI
Manual AP processes could be fasterand more error-prone, hindering visibility and control over cash flow, spendingpatterns, and supplier relationships. That's why more and more CFOs areinvesting in AP automation solutions, ranging from robotic process automation(RPA) to artificial intelligence (AI), to streamline invoice capture, data extraction,validation, matching, and approval. According to a recent study by the HackettGroup, companies that automate 75% or more of their invoice-to-pay process canreduce processing costs by up to 80% and cut cycle times by up to 90%.
Challenge solved: Staff shortages will continue, increasing pressure on manualAccounts Payable processes.
2. Process Standardization: FromChaos to Compliance
Even with automation, AP processes canstill suffer fragmentation, inconsistency, and non-compliance. CFOs will demandcloser collaboration between Finance, Procurement, and AP teams to alignpolicies, procedures, and metrics across the source-to-settle (S2S) cycle. Bystandardizing workflows, data structures, and performance indicators, financeteams can reduce errors and risks and gain insights into spending patterns,supplier performance, and cash forecasting. For example, by measuring invoicecycle times, approval rates, and early payment discounts, finance teams canidentify bottlenecks, root causes, and improvement opportunities.
Challenge solved: More visibility and control over cash flow, spending patterns, andsupplier relationships.
3. Supplier Enablement: FromTransactions to Partnerships
AP is a back-office function and afront-line engagement channel with suppliers. CFOs will encourage AP teams toshift from a transactional mindset to a partnership approach by leveragingdigital platforms, portals, and networks to collaborate with suppliers oninvoicing, payment, and performance issues. By empowering suppliers toself-serve, track, and resolve their queries, finance teams can reduce manualintervention, improve data quality, and strengthen relationships. Moreover,finance teams can use data analytics and insights to identify potential risksand opportunities with suppliers, such as early payment discounts, volumerebates, and joint innovation projects.
Challenge solved: The need for collaboration and innovation with suppliers.
4. Data Analytics: From Descriptiveto Predictive
AP generates a wealth of data that canbe turned into actionable insights and foresight. However, most finance teamsrely on basic reports and dashboards showing only historical trends anddeviations. That's why CFOs will push for more advanced analytics capabilitiesin AP, such as machine learning, natural language processing, and predictivemodeling, to forecast cash flow, detect anomalies, and suggest optimizations.By combining AP data with other sources, such as contracts, budgets, and marketintelligence, finance teams can also gain a holistic view of the enterprise'sperformance and risk profile.
Challenge solved: More strategic insights and foresight from AP data.
5. Bolt-on Solutions: FromIntegration to Innovation
While many ERP systems offer basic APfunctionality, they often need more flexibility and agility to meet theevolving needs of finance teams and their stakeholders. That's why CFOs willlook to supplement their ERP systems with bolt-on AP solutions, such as invoiceprocessing, analytics, and supplier management tools, that can integrateseamlessly and complement their existing technology stack. By adopting abest-of-breed approach, finance teams can avoid the limitations andcomplexities of ERP customizations and leverage the latest innovations andfunctionalities in the market.
Challenge solved: The need for scalability and innovation in legacy ERP systems.
In today's rapidly changing businesslandscape, CFOs face many challenges in balancing the need for technologicalinnovation with fiscal responsibility. One key challenge is identifying bolt-onsolutions that deliver tangible results while being mindful of cost. CFOs mustevaluate options thoroughly to mitigate the risk of investing in the wrongsolution and consider the potential return on investment. Another challenge isensuring these solutions can be seamlessly integrated with legacy systems,requiring close collaboration between Finance, Procurement, and AccountsPayable teams.
Discover Dollar's innovative solutionsolved Accounts Payable challenges by delivering a comprehensive platform thathelps large companies identify savings opportunities in their indirectspending. By leveraging artificial intelligence, machine learning, and dataanalytics, Discover Dollar's platform enables companies to unlock hiddensavings potential and optimize their procurement processes.
If you're ready to take your financeteam to the next level and achieve tangible results, it's time to considerDiscover Dollar's cutting-edge technology. Book a demo today to see firsthandhow our solution can bring significant value to your organization, streamlineintegration with legacy systems, and ultimately enable growth and innovation ineconomic uncertainty. Don't miss out on this opportunity to revolutionize yourfinance operations – schedule your demo now.
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