[Editor’s Note: Ardent Partners recently published its AP-themed report, “Accounts Payable 2022: Big Trends and Predictions”. Over the next few weeks, this site will feature articles highlighting the key discussion points from the report.
Prediction #8: AP Will Help Manage the Extended Workforce
Ardent’s research has shown that 46.5% of the average company’s total workforce is considered “extended” or “non-permanent,” including consultants, contingent, and “gig” workers. There is often a sense of “payroll diversion” within the contingent workforce arena, as independent and gig workers can be paid directly via invoice or other payment methods without having to go through traditional payroll processes.
This is a massive arena of spend that requires more intuition, oversight, and management, especially as it pertains to the financial spectrum. AP can play a pivotal role in not only ensuring that payment data is leveraged in workforce planning, but that key gig workers and contractors are paid quickly and efficiently which is critical in attracting ‘non-employee’ labor and keeping them wanting to work for an organization in the future.
This is a greenfield opportunity for the AP function that will grow considerably in the months and years ahead. AP leaders will work deliberately to play a significant role in helping manage the financial components of this extended workforce.
Prediction #9: AP Continues its Upward Trajectory
With improved and more agile analytics, AP leaders are starting to provide actionable intelligence to key partners such as CFOs, controllers, treasurers, CPOs, and business unit leaders, who can, in turn, leverage it for improved decision-making and planning. Thus, it is the thirst for knowledge and a drive to continue AP’s journey towards optimization that will help transform the function from where it is today into a brighter, clearer, more strategic “tomorrow.”
The immediate future for the AP function is now and 2022 will provide ample opportunities for AP teams to prove their strategic value to the greater organization by helping to ensure the continuity and resiliency needed to help their businesses execute and advance amidst sizable uncertainty. But AP leaders must also focus on the future, and, where possible, begin to develop the organizational capabilities that will drive long-term success.
For too many years, AP lacked the voice and credibility needed to accomplish a transformation without the support of others. Today however, more AP groups than ever before have the ability to drive tremendous value and help the greater enterprise navigate these tough times.
In 2022, the average AP department’s performance will continue to improve while its overall strategic impact expands. As a result, appreciation for the work and impact of AP will continue to rise within the enterprise and across the supply chain.
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