[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.
Prediction #7 – P2P Teams Will Strengthen Internal Controls to Prevent Occupational Fraud
The Jacksonville Jaguars have more to worry this offseason than simply missing out on the NFL playoffs – a financial manager was recently accused of stealing $22 million via the team’s virtual card program. Recent research by industry experts, ACFE, has shown that the average occupational fraud event takes 12 months to discover and has an average loss of more than
$1.78 million. These shockingly high numbers must be countered and Ardent Partners predicts that in 2024, more AP/P2P teams will initiate a program to improve internal controls designed to prevent and catch occupational fraud.
Prediction #8 – The Pace of AP and B2B Payment Transformations Gain Momentum
AP leaders are going “all in” on digital transformation this year and more teams will prioritize these initiatives over all other programs. A digital transformation provides an opportunity for an AP team to use technology as a means to reimagine the organization’s entire scope of operations and how it performs. In 2024, these projects have become table stakes and a majority of AP units plan to be “dealt in.” The path to becoming a top AP department in 2024 starts here.
Prediction #9 – AP and B2B Payments Automation Accelerates in the Mid-Market
Ardent Partners research has clearly shown that AP automation delivers value to organizations of all shapes and sizes. While the adoption of ePayables solutions has traditionally been highest among large and enterprise-sized organizations, that is changing. Ardent’s research also shows that the use of AP technology continues to expand among mid-market enterprises (MME), which Ardent defines as having annual revenues between $50 million and $500 million. This increase has been driven by the simple fact that more solution providers are building solutions designed to service this market, offering better and more affordable technology than in recent times. If they have not already done so, AP leaders at MMEs should be building their case for transformation.
