In today’s global economy accounts payable (AP) teams must deal with different currencies, different time zones and a country-specific tax and legal regulations. These complexities are amplified for companies that employ a decentralized payment process — one that lacks standardization and integration across the payment process. This can lead to payment errors, decreased visibility of cash positions, and late payments.
Aberdeen Group’s 2017 Accounts Payable / Accounts Receivable Benchmark survey showed that best-in-class AP firms are nearly 130 percent more likely than the industry average to have some form of global payment solution in place to ensure supplier payments are at the lowest costs, on time, and accurate. The survey also found that leaders are 1.3 times as likely as followers to have the ability to consolidate multiple payment types.
Understanding where everything is along the payment process can eliminate the potential of stalled or suspended payments. According to the survey, leaders are twice as likely as followers to have real-time visibility into their cash positions. With workflows in place, any payment errors can be resolved automatically within the system. Translation: Greater visibility into the payment process enhances cash flow management and reduces risk.
By implementing an integrated, global payments solution, AP teams can effectively scale payment processing while gaining more visibility, improving cycle time and reducing costs. The survey shows that the invoicing processing cost for leaders is $3.63 compared to $8.69 for followers, and the time to process payments is 3.8 days for leaders, nearly four times less than followers (11.1 days).