What do you consider to be the key financial priorities for your organization for the year ahead? The CFO’s motivation... Strategic Priorities 72% 48% 45% 43% 35% Improving operational efficiency Optimising cash flow and working capital management Increasing profits and top line performance Reducing overall purchase costs Improving forecasting / planning ability Basware Global Survey 2011
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The CFO’s motivation - AP, AR & Financial Operations ... · What do you consider to be the key financial priorities for your organization for the year ahead? The CFO’s motivation...
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What do you consider to be the key financial priorities for your organization for the year ahead?
The CFO’s motivation...
Strategic Priorities
72% 48%
45% 43%
35%
Improving operational efficiency
Optimising cash flow and working capital management
Increasing profits and top line performance
Reducing overall purchase costs
Improving forecasting / planning ability
Basware Global Survey 2011
... How Accounts Payable can influence that.
The Top 10 Mistakes in Accounts Payable
And How to Avoid Them
Shuffle Paper for Approval of Invoices
Shuffle Paper for Invoice Approval Problems
Ø Photocopying of Invoices
Ø Tracking of Invoices in Process
Ø Faxing of Invoices
Ø Printing of emailed invoices
Ø Temporary Filing of Invoices in AP
Imaging and Workflow Automation: Paystream Advisors 2012
Pay Late Fees or Not Take Advantage of Favorable Early Pay Discounts
Be Involved With Why the CFO or Others are Walking Out in Handcuffs
Audits and Compliance Problems
Ø Must Have an Auditable and Repeatable Business Process
Ø Auditors Always Seem to Want the One Invoice You Can’t Find or Mishandled
Ø Store your invoice, check images, or remittance documents in multiple locations or media making audits painful and expensive
Ø Fraud in Invoice Approval
and payments
Fraud associated with Payment method Aberdeen Group May 2010
Neglect to Coordinate with Finance, Procurement and IT
SAP V.3.4
Purchasing & Procurement
Financial Operations AP/AR
Supplier Data
Cash Control & Working Capital
Processes
ORACLE V.9.0
Purchasing & Procurement
Financial Operations AP/AR
Supplier Data
Cash Control & Working Capital
Processes
Infor ERP
Purchasing & Procurement
Financial Operations AP/AR Cash Control &
Working Capital Processes
SAP V.5.0
Purchasing & Procurement
Financial Operations AP/AR
Supplier Data
Cash Control & Working Capital
Processes
Fragmented silos mean fractured processes Paper processes still dominate
Are you struggling to work together?
Supplier Data
Differing Priorities exasperate the problem example scenario:
AP: Focusing on process control, compliance
& efficiencies. (e.g. error & dispute
Management)
IT: Balancing
Cloud v. On-Premise Strategies
Treasury: Optimizing cash, coping
with squeezed credit lines & currency volatility
Finance: looking to improve
working capital by pushing out payment terms
Procurement: Focused on savings
targets, not total cost and working capital
optimization and supply assurance
Suppliers: Factoring in increasing
‘cost of business’ into pricing & terms,
exposed to liquidity risk
Become a Call Center/Service Center for Vendor and Internal Requests
Call Center/Service Center
Problems
Ø Interrupts the Core Work of Accounts Payable Professionals
Ø Typically Requires Research and Then an Additional Follow Up Call
Ø Even Research Does Not Always Answer the Request – If the invoice is not in the AP process it is difficult to locate – Who really understand what the supplier delivered
Personal Archive for Reviewers/Approvers
Supplier Portal for invoice and payment statuses
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Collaborate with your peers and suppliers
Have Company Operations Interrupted or Halted Due to Non-payment of an Invoice
Core Business Interrupted
USA TODAY January 1, 2008
Core Business Interrupted
Problems
Ø Production Stops – If required goods and services being provided by vendors are placed on hold it can cause down stream issues.
Ø Missed Revenue
Ø Gets Executive Attention Fast
Manually Enter Invoice Data Into Your ERP System
Manual Data Entry
Problems
Ø High Cost to Manually Enter Required Invoice Header, Line and Coding Information – Most organizations do not capture line item detail due to this – Line item detail critical in managing purchasing costs – Coding can sometime be extensive
Independent research confirms Basware as Invoice Automation leader
The Forrester Wave™: AP-EIPP, Q2 2008 A US survey of Electronic Invoice Presentment and Payment
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
Independent research confirms Basware as Invoice Automation leader
Consistently rated as leading P2P Provider
Independent research confirms Basware as eProcurement leader
The Forrester Wave™: eProcurement Solutions, Q1 2011 A global survey off eProcurement vendors
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
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