Research from Ardent Partners, in association with Tradeshift, shines a spotlight on the state of the Accounts Payables (AP) profession. Here are five stats you should know.
52% of organizations believe AP is “exceptionally” or “very” valuable
If you work in AP, you know that what you do plays a critical role in the success of the business. But it’s encouraging to see others recognizing the value your department has to offer. Let’s make 2019 the year you convince the remaining 48%.
Only 45% of invoices received are electronic
If you’re drowning in a sea of paper invoices, we guarantee you’ll struggle to show the value your department can add. If you can go digital, you’ll receive 100% of your invoices electronically letting you substantially lower costs, increase efficiency, and unlock new opportunities for your department to add value.
Exceptions and approval times are the two top challenges for AP
There’s a direct correlation between the percentage of invoices received electronically, and the cost and time it takes to process an invoice. Companies that have gone digital generally process invoices 2.5x faster than those that haven’t. They also have a 50% lower exception rate than teams still using paper. It’s clear: going digital will go a long way towards removing APs biggest headaches.
Businesses only capture 19% of early supplier discounts
There’s so much value locked up in unpaid invoices. If you unlock it, you’ll unleash working capital benefits for your organization that will have a positive impact on the bottom line. You’ll also give your suppliers access to critical cash flow, allowing them to pass that value back up the supply chain. Going digital and getting your invoices approved faster can be a win for both your organization and its supply chain.
AP has a critical role to play in the company’s future
According to the report, in two years time, most business leaders expect AP departments to develop deep functional collaboration with other departments underpinned by a fully digital and automated AP process. While in five years, they want AP to become an intelligence hub for spend, finance and cash that plays a critical role in forwarding enterprise excellence.