Managing cash in a manual or semi-automated payables environment is like shooting in the dark.
- Key information is not captured
- Data is not accurate
- Information is not timely
- Fragmented systems deliver incomplete data
- Decision-makers do not have access to key variables
These are some of the reasons that almost half (45.4 percent) of controllers the Institute of Finance and Management (IOFM) surveyed said a lack of visibility into invoices and payables data is the top challenge in their accounts payable department.
This is not surprising when you consider that effective cash management requires visibility into invoices and payables data. The inability to effectively manage cash can have negative ripple effects throughout the business, including higher borrowing costs and an inability to invest for growth.
There is no need to shoot in the dark when you can just turn on the lights. Fully automated accounts payable solutions provide organizations with the visibility they need for cash management, forecasting, spend management, long-term planning, and budgeting.
Here are some of the real-time insights organizations gain from full accounts payable automation:
- On-time payment percentage
- Enterprise spend and trends
- Category spend and volume
- Spend-to-supplier ratios
- Accounts payable value and volumes
- Invoice and payment status
- Accounts payable process metrics
- Percentage of early-payment discounts captured
The insights from fully automated accounts payable solutions provide greater assurance when it is best to release cash (in turn, reducing borrowing costs and opening the door to capture more early-payment discounts), and helps senior executives make better-informed investment decisions. For instance, insights into cash flow can be used to formulate the value of early payment discounts.
Are you ready to turn the lights on? Contact us at Nexus.
Can you access all of your GL System or ERP Package data in your AP system, or vice versa? Using disparate systems that are not integrated leads to a number of challenges including:
- Inefficient Processes
- Weak Operational Controls
- Poor Financial Visibility
Download this white paper to learn how a fully integrated accounting workflow can help increase staff productivity, give you better control and visibility, and the ability to better manage cash flows and working capital.