Big data management and usage will become the critical element to establishing Best-in-Class performance in accounts payable in the future. With the broad consumerization of AI technology over the past 18 months, it has become clear that modern society is on the cusp of a large technology breakthrough. Harnessing the power of data and intelligence is becoming increasingly important for finance teams in today’s business landscape.
When this year’s ePayables survey respondents were asked how they currently utilize data and intelligence for various aspects of their finance team, their responses shed light on the evolving role of technology and analytics in driving strategic decision-making and operational efficiency.
Forecasting, Budgeting, and Planning: A significant portion (79%) of the surveyed professionals acknowledged the utilization of data and intelligence for forecasting, budgeting, and planning purposes. A clear majority of AP leaders now recognize the value that data-driven insights can bring in enabling accurate financial projections and aligning resources with organizational goals.
Fraud and Compliance Management: With the spike in fraudulent invoices during the pandemic, maintaining robust fraud and compliance management practices has become very important for AP organizations. Accordingly, 66% of AP organizations now rely on data and intelligence to enhance their fraud detection and compliance efforts. By leveraging advanced analytics, AI, and machine learning algorithms, organizations can identify anomalies, detect potentially fraudulent activity, and help ensure adherence to regulatory requirements.
Invoice Exception Handling: Managing invoice exceptions efficiently is crucial for streamlining the accounts payable process. In 2024, a majority (59%) of AP departments are using data better to manage their exceptions by identifying patterns, addressing the root causes of exceptions, and implementing proactive measures to minimize disruptions in the invoice processing workflow.
Cash Flow Analysis: Effective cash flow management is critical for businesses of all sizes. Fifty-six percent of all AP teams utilize data and intelligence to analyze enterprise cash flow patterns. By leveraging real-time financial data, organizations can gain better visibility into cash inflows and outflows, enabling proactive decision-making and ensuring optimal liquidity.
Enhancing Supplier Management: Effective supplier management plays a critical role in delivering great products and services, controlling costs, and assuring supply. From an AP perspective, it is important for strategic suppliers to experience a “friction-free” invoice and payment process. In 2024, 56% of AP groups are utilizing data and intelligence to help in this area, from validating bank account and remittance information to enabling supplier visibility and automating smart matching capabilities.
Improving Collaboration between Finance and Procurement: Efficient collaboration between finance and procurement departments is key to optimizing spend management and strategic supplier relationships. Essentially half (49%) of AP teams leverage data and intelligence to improve collaboration between these two functions. By sharing relevant data, organizations can foster transparency, align strategies, and drive mutual value creation across the P2P process.
