Editor’s Note: Today’s article is a sneak peek into the findings from Ardent Partners’ latest AP research report, “ePayables 2016: Eyes on Prize,” available for download here. CPO Rising will feature several articles highlighting key discussion points from the new report.
In the last five years, advanced technologies have transformed how the accounts payable (“AP”) function operates. These “game-changing” innovations, identified in Ardent Partners’ new ePayables 2016: Eyes on the Prize report (click here to download), can further streamline the tactical aspects of AP operations that, when automated and linked together, can drive true strategic value from AP-led operations.
As AP’s tactical activities become more seamless, the function becomes increasingly able to focus on strategic, value-add activity such as providing financial and operational intelligence to internal stakeholders and collaborating more closely with functional partners, such as procurement and treasury. Reducing AP’s transactional responsibilities, which is a standard goal for automation, can offer benefits to the wider enterprise through allowing AP to shift its focus to strategically valuable tasks such as providing financial and operational intelligence.
The following “game-changing” innovations are actively transforming the accounts payable environment and pushing this function into new strategic ground:
- Moving to a truly “touchless” invoice environment. Touchless, or “straight-through,” invoice-processing has long been a goal for many AP teams. Touchless processing refers to an invoice entering the AP system electronically, then being automatically validated, approved, and scheduled for payment without any human interaction from the AP team. Touchless processing removes AP from the invoice approval process unless an exception occurs; this increases the number of invoices that each full-time employee can process, and allows AP to spend more time on strategic activities.
- Agile reporting dashboards. The ability to centralize, analyze, and share data can allow AP to deliver operational and financial value throughout the enterprise. The use of agile dashboards, which facilitate dynamic information and intelligence, helps to arm stakeholders with real- or near-real-time insights based on pre-determined business requirements. As these dashboards become more prominent in the coming years, AP has a real opportunity to showcase its strategic value and evolve beyond its transactional past.
- Mobile solutions for invoice approval. Making it possible to approve an invoice on a mobile device can be valuable in both a virtual business environment and in a setting where extensive business travel is required. Executives that spend a significant amount of time on the road may not be able to reach a desktop workstation in a timely fashion, thus extending the time it takes for an invoice to get approved. For a traditionally back-office function like AP, mobile capabilities are the very definition of game changing. Approvers out in the field can verify their department’s invoices on the go, gaining an up-to-the-minute picture of their budget adherence without having to return to a desk. This dramatically decreases invoice cycle time, and increases data visibility through putting the relevant information right at the fingertips of busy professionals and executives who are not always in the office to approve an invoice.
Final Thoughts
The accounts payable industry has already, in the past two decades, made significant strides in its transition away from a manual, back-office function that provides value based only on increased efficiency. This does not mean that the transformation is over, Rather, these “game-changing” innovations offer AP the opportunity to ascend to an even higher level and become a more vital part of the business than ever before.
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