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Survey Report: Senior Finance Executives Say Accounts Payable is Their Top Priority for Improvement in 2015A majority of senior finance executives say that their top priority for improvement in 2015 is the accounts payable (AP) function, according to a new survey report issued by Canon Business Process Services. The executives revealed that AP represents their organization's most time- and labor-intensive finance function, as well as the most manual and paper-intensive, which among other challenges is why AP is such a high priority for improvement. The Canon (News - Alert) survey, "Finance Executive Survey: Priorities, Challenges and Technologies for the Year Ahead," was designed to help clarify the greatest pressures and highest concerns of CFOs, Controllers and other senior finance executives. In one key finding, executives specified that errors are the AP department's biggest challenge, closely followed by two other major concerns: lack of visibility into invoices and payables and difficulty handling, managing and finding invoices. To help solve these challenges, organizations are planning to increase their investments in accounts payable automation in 2015 (compared to investments during 2014). They have also made automating accounts payable and leveraging the benefits of outsourcing the function a priority. Taking these and other survey findings into account, there are three best practices that senior finance executives can leverage to help advance their AP function during the coming year. Recommendations to Help Improve AP One practice is to strategically consider in-house and outsourced support. Finance executives and AP practitioners generally are much more concerned with such issues as accuracy, compliance and supplier relationships than about optical character recognition software, data extraction, workflow and automation. The latter tasks can be better managed b delegating them to a managed service provider and team of experts. Previous research by Canon indicates that companies that at least partially outsource their AP operations reap numerous benefits including lower cost per invoice and shorter invoice processing cycle time.1 Another approach is to centralize invoice receipt. Implementing a process in which suppliers send invoices directly to the AP department adds a layer of control to the entire AP process-and also provides the ability to save significant time and money. Canon has found that when AP departments adopt this centralized structure, the cost and time taken to process an invoice are reduced significantly. The efficiency with which invoices are processed also increases, as does the percentage of invoices that are processed in touch-less manner.2 A third a strategy is to leverage AP automation. AP process automation involves capturing and extracting data, routing invoices for approval, matching invoice data and resolving discrepancies. Advancements in workflow automation technologies are continuously improving the AP process. This gives enterprises the flexibility to put tasks like setting up and maintaining AP process automation into the hands of an experienced managed services provider.3 Besides improving the AP function, Canon's survey spotlights another untapped opportunity for senior finance executives in 2015. According to survey respondents, few organizations are using performance management systems to measure key performance indicators and many companies are reviewing reports only monthly rather than in near real time. Implementing solutions to continuously monitor and improve performance, such as Canon's MAXBASIC® and MAXADVANCED®, can make it easier for finance executives to meet their most pressing objectives in the days ahead. For additional insights contained in Canon's latest survey report and other key industry trends visit Canon Business Process Services AP. About Canon Business Process Services Canon Business Process Services, Inc. is a leading provider of managed services and technology that enable organizations to improve operational efficiency while reducing risk and cost. Experts apply quality management principles and tools such as Six Sigma to advance performance to a higher level. The company offers services including BPO, imaging, records and information management, print, mail and eDiscovery, and is an IAOP Global Outsourcing 100 Leader in 2014 for the eighth consecutive year. Based in New York City, Canon Business Process Services is a wholly owned subsidiary of Canon U.S.A., Inc. Learn more at www.cbps.canon.com and follow us on Twitter. 1. Canon Business Process Services (2014), High Performance Accounts Payable: Three Key Drivers to Success, available at www.cbps.canon.com 2. Ibid. 3. Ibid. All referenced product names, and other marks, are trademarks of their respective owners.
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