How Bi-directional Integration Unlocks the Value of YourAP Information
More businesses recognize that their accounts payable departments are sitting on a data gold mine.
Fifty-eight percent of businesses say their demands for real-time visibility into accounts payable information is slightly higher or significantly higher compared to a few years ago, per the Institute of Finance and Management (IOFM). Visibility into accounts payable information enables businesses to better manage their finance operations, working capital performance, and corporate spending.
The problem is that disconnected or disjointed accounts payable and enterprise resource planning (ERP) applications have most businesses flying blind. Most accounts payable solutions only output a file that is periodically uploaded to an ERP. As a result, 45 percent of controllers surveyed by IOFM say that a lack of visibility into information is the top challenge in their accounts payable department.
In an environment where accounts payable and ERP systems are disconnected:
- Key information is not captured
- Data is not incomplete or inaccurate
- Information is not timely
- Data is not well-organized
- Decision-makers don’t have access to key variables
It is no wonder that 40 percent of accounts payable departments surveyed by IOFM say that improving visibility is their top priority – ahead of hot-button issues such as fraud and compliance.
That’s where accounts payable solutions that provide bi-directional integration with existing ERP applications come in. These advanced solutions integrate tightly with existing ERP applications, in real-time, enabling accounts payable departments to synchronize data between the systems and:
- Streamline operations: Accounts payable solutions with bi-direction integration to existing ERP applications deliver the metrics a department needs to ensure peak performance: two-way and three-way matching rates, on-time payment rates, cycle times, individual and team accounts payable process metrics, unresolved exceptions, exceptions per supplier, and more. In an environment with tightly integrated accounts payable and ERP systems, accounts payable staff spend less time compiling, aggregating and slicing and dicing operations data.
- Enhance working capital performance: Accounts payable solutions with bi-directional integration to existing ERP applications empower financial leaders with ready insights to make them more agile in their financial decision making. The technology delivers instant access to actionable information such as trends, accruals and payment and discount capture metrics. As a result, financial leaders can make better working capital decisions.
- Better manage spending: The visibility provided by solutions with bi-directional integration to existing ERP applications enables accounts payable departments to improve collaboration and communication with procurement, while better linking procure-to-pay processes and systems. The technology enables users to perform fiscal checks and access key spend data such as category spend and volume and spend-to-supplier ratio. Aggregated data such as cost center, category, and geographic location makes it easy for users to make spend calculations. And the visibility offered by integrated accounts payable and ERP applications helps with contract compliance and potentially provides leverage in negotiations with suppliers.
The insights provided by accounts payable solutions with bi-directional integration to existing ERP applications deliver benefits that go beyond the accounts payable department. Finance and procurement leaders benefit from actionable information into cash, spend and compliance.
Does your organization want better visibility into its operations, cash and spending? Contact Optima Global Solutions to arrange a free, no-obligation consultation with one of our experts.