[Editor’s Note: Ardent Partners recently published its Accounts Payable-themed report, “Accounts Payable 2024: BIG Trends and Predictions”. Over the next few weeks, this site will feature articles highlighting the key discussion points from the report.
In 2024, the fifth year of the new decade, the accounts payable (AP) landscape continues to undergo broad, sweeping changes, driven by the events of recent years marked particularly by the global pandemic, unprecedented inflation and rising interest rates, supply chain disruptions, and lingering economic uncertainty. As finance and other business leaders forge ahead into 2024, it is evident that these market events drove a major shift in perceptions regarding the accounts payable process, greatly aided by the resilience of the many AP teams who ensured stability and delivered a real financial impact. In the wake of recent events, businesses have come to a resounding realization — a robust AP operation can be a strategic powerhouse capable of delivering tangible value, enhancing bottom-line performance, and optimizing overall operations. The evolving landscape underscores the imperative for organizations to recognize and leverage the strategic potential embedded within their AP functions.
Over the next two weeks, we’ll feature the BIG trends in accounts payable followed by equally BIG predictions for 2024 that will help AP, P2P, and finance professionals understand the key issues at hand and better prepare them for the year ahead.
BIG Trend #7 – The Increasing Value of Visibility into AP Data
AP professionals with even a modest tenure in the profession know that there is a growing awareness of the wealth of data available. From transaction details to invoice status, payment terms, spend data, T&E records, and cash flow insights – AP serves as a repository of valuable information. It is heartening to see increased recognition of the importance of this data. The introduction of advanced reporting tools and data analytics plays a pivotal role in unlocking the true potential within AP, rendering these tools increasingly indispensable in day-to-day operations.
Of particular significance is the evolving perception of AP within organizations. Many AP departments have become “centers of efficiency” but an increasing number are also focused on becoming a “hub of intelligence.” While important, this shift is not solely about embracing new technology; it also entails an acknowledgement of the intrinsic value that AP contributes. At present, AP is solidifying its position as a trusted source of knowledge. Business leaders are relying on the function to furnish a clear and accurate depiction of the organization, especially concerning cash management. This marks a transformative phase for AP, where its role as a strategic business operation is helping reshape how businesses leverage the wealth of data at their disposal. And with the emergence of AI within AP, data will only become more important… and valuable.
BIG Trend #8 – Business Travel Risk Is at an All-time High
In a post-pandemic world, the strong return of business travel was a comforting sign to many that the world would and could revert to earlier, simpler times. But, as heightened uncertainty and the actions of an increasing number of unpredictable actors continue to de-stabilize the geopolitical and economic world order, the harsh reality is that business travel risk is at an all-time high.
While those charged with simply managing business travel expense reimbursements may not have an ability to directly mitigate this risk, they can partner with business travel teams and business travelers to develop, communicate, and enforce stronger travel security protections and utilize solutions that can centralize the management of business travel and support safer trips and more secure activities for all travelers.
BIG Trend #9 – The War for Talent Continues to Escalate, AP Leaders Need a Plan
Staffing shortages have led to a very real “war for talent.” The stakes for finding, attracting, and hiring the right talent remain high. Record-low unemployment numbers coupled with all-time high job openings has led to struggles for many companies. This war for talent has emerged with many companies increasingly pressed to staff basic operations.
The hard truth is that there is no single solution for global staff shortages that are going to continue for the next few years. Accordingly, AP leaders must start developing new recruiting strategies and contemplate different staffing models, including a greater use of contingent workers to augment their staffs and ensure the important work of their operation continues uninterrupted in 2024.
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