5 challenges for accounts payable departments

5 challenges for accounts payable departments

5 challenges for accounts payable departments

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Using know-how is surging, however there are nonetheless issues which might be plaguing accounts payable (AP) groups and inflicting them to lose cash, time and their aggressive edge. That is notably true in organisations that haven’t but totally embraced the ability of automation know-how.

We joined forces with analysis and advisory agency Ardent Companions to find which key challenges AP departments are dealing with so we may establish how one can use automation to assist mitigate these points and allow them to grow to be highly effective, agile, savvy and aggressive.

In accordance with the AP Pulse on the Mid-Market in 2021 report, 51 per cent of the mid-market AP groups named bill exceptions as their high problem. Exceptions are the reason for bottlenecks and hold-ups within the AP course of and may negatively have an effect on productiveness. They’re additionally the principle trigger of upper processing prices and longer approval occasions, which trigger additional delays.

In the meantime, 53 per cent of respondents cited excessive bill processing prices as their greatest issue. Nobody likes spending pointless cash, particularly for one thing as tedious as bill processing. Manually processing paper will get costly and is extremely time consuming, leading to a time and value burden for AP departments.

Lack of bill and cost visibility is a critical concern for round 45 per cent of AP groups. Having correct and well timed entry to bill and cost information is essential, particularly to mid-market firms that depend on money move from operations to fund progress. With out applicable visibility, they can’t get a transparent have a look at bottlenecks and liabilities to see the place delays are taking place and the place they’re lacking alternatives for reductions.

Effectivity is essential in enterprise, however 41 per cent of these surveyed stated that bill and cost approvals are taking far too lengthy. When the bill and approval course of is taking longer than it ought to, the corporate loses out on cash and the AP crew loses out on time and the power to tackle extra pertinent initiatives.

Equally, simply over 1 / 4 (28 per cent) of AP workers stated that they spent an excessive amount of time dealing with provider enquiries and exceptions, hindering their operations. To maneuver ahead effectively, workers can’t spend all this time monitoring down cellphone numbers, correcting contact info and interacting with suppliers to get lacking info.

AP automation options, like MetaViewer, can eradicate these challenges (and lots of others) so AP departments could be as environment friendly, efficient and strategic as potential in right now’s fast-moving world.

Alyssa Putzer is the advertising communications specialist for Metafile Data Methods  

This text was initially revealed within the Summer 2021 issue of The Record. To get future points delivered on to your inbox, sign up for a free subscription.

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