Unfortunately, in addition to the traditional, primarily tactical- related challenges facing AP year after year, Ardent Partners believes there are several new risks on the horizon that could negatively impact AP performance in 2022 and beyond. AP leadership needs to be aware of these threats, monitor them, take proactive measures, and to the extent possible, be prepared to take the necessary steps to ameliorate their potential damage to not only the AP department’s overall performance but also to the greater enterprise itself. These risks include:
AP staff burnout becoming the norm – If the pandemic was a veritable triathlon for accounts payable professionals, then the current transition period is certainly a marathon for them given how much they have to balance in the new and changing world of work. In 2020, this function was faced with a variety of challenges during those early pandemic days. Today in 2022, the world may be removed from the “acute phase” of the crisis; however, the ramifications and after effects linger within how businesses now operate. With so much to handle, AP staff may be overworked due to staffing shortages (see the “The Great Resignation”), leaving some major gaps in how invoices are processed.
Business leaders could be distracted by larger issues – Make no mistake about it, invoice exceptions and extended workflow and processing times are significant problems. However, businesses do not operate in a vacuum. Many executive leaders are understandably focused on globalization, increased competition, inflation, workforce management issues, and other problems that are typically higher visibility than challenges happening within the world of accounts payable.
The business world now revolves around regular disruptions and new objectives – The war in Ukraine rages on. The pandemic still has no end. Inflation is a cause for concern and will be for some time. Political divisions are an accepted part of our reality. These are all major global issues that are transforming the way the business functions. Couple those with continued workforce (The Great Resignation), financial (inflation and tightening budgets), and supply management (supply chain disruptions) issues that are forcing businesses to reimagine how they conduct operations. These challenges simply compound the already frustrating approval wait times and invoice exceptions that AP currently faces.
No one knows what the future holds and these are just three of many possible risks that could impact not only on accounts payable but other parts of the organization as well. If we learned anything from the onset of the pandemic and the various disruptions that followed, it’s that planning and preparation matter when faced with an uncertain and ever changing future.
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Tagged in: Accounts Payable, AP Metrics, Chief Procurement Officer, CPO, Risk Management
