[Editor’s Note: Ardent Partners recently published its Accounts Payable-themed report, “Accounts Payable 2025: BIG Trends and Predictions”. Over the next several weeks, this site will feature a series highlighting the key BIG Trends and Predictions from the report.
As we step into 2025, the world of Accounts Payable (AP) is poised for a transformative year, driven by the accelerating forces of artificial intelligence (“AI”), advanced automation, and the growing recognition of AP’s potential to deliver measurable operational and financial impact.
Since the pandemic began, AP has emerged as a strategic cornerstone for businesses looking to streamline operations, enhance cash flow management, and bolster profitability. AI-powered solutions are helping to redefine the function; the need for smarter cash management and stronger supplier relationships are also aiding the cause.
In this new age, smart executives have identified AP as an area of investment and a lever for driving strategic value. This attention has empowered many AP teams to move beyond transactional tasks, embracing roles that directly influence financial performance and operational excellence.
This Week’s BIG Trend and Prediction
BIG Trend #8 – Global Invoicing Complexity, Part 2: New Tariffs Make Life Tougher for AP
Many market experts anticipate that U.S. tariffs will become a significant economic factor in 2025, particularly with the incoming administration’s plans to implement substantial tariff increases. At the time of this writing, President-elect Donald Trump has proposed increases on Chinese, Canadian, and Mexican imports. To many, it is unclear if the talk of tariffs is genuine or simply political rhetoric. What is clear is that if these or other tariffs are enacted, such measures would likely raise the tariff rates on imported goods. Industries heavily reliant on imported materials, such as manufacturing, retail, and technology, will face increased production costs, which will impact consumer prices and possibly profit margins.
Tariff management may not fall directly under AP’s remit, but in many cases, it will be a stakeholder. Whether it falls to AP or another finance team, new responsibilities for tariffs could include:
Calculating and recording tariffs: Accurately calculating and recording tariff costs on invoices requires careful attention to detail and may necessitate system adjustments.
Managing duty drawback claims: Companies may need to file duty drawback claims to recover tariffs paid on imported goods that are subsequently exported or used in the manufacture of exported products.
Reconciling discrepancies: Discrepancies between invoice amounts and actual costs, including tariffs, may increase, requiring more thorough reconciliation processes.
Prediction #8 – Pressure on Back Office Operations in Eastern Europe Will Begin to Build This Year
Businesses with operations in Eastern Europe may be impacted by the outcome of the Ukraine-Russia war. Putin’s invasion of Ukraine has been slowed significantly by the financial and military support provided to Ukraine by the U.S. and other NATO countries. Based upon its prior statements and actions, the returning Trump administration appears unlikely to maintain its current level of support for Ukraine. Trump has also been a loud critic of the NATO and the U.S. role in it.
Putin’s interest in expanding Russian borders does not end with Ukraine. Russian progress — if not outright victory in Ukraine — would place significant pressure on bordering nations like Belarus, the Baltic states (Estonia, Latvia, and Lithuania), and even Poland in the near term. This threat would significantly impact Western corporations that have back-office operations in these countries.
For example, political instability could result in disruptions to employee safety, data centers, and supply chains. Security concerns could escalate, with increased threats of cyberattacks, espionage, and sabotage targeting sensitive back-office operations handling customer data, financial records, and intellectual property. The need for enhanced security measures, such as bolstered cybersecurity and physical protections, would drive up operational expenses.
Talent retention and attraction could also suffer, as safety concerns deter skilled workers, leading to brain drain as employees migrate to safer regions. A talent shortfall could disrupt operations, especially in sectors reliant on specialized skills in technology and finance. Executives with operations either owned or outsourced in this region should put resilience plans in place immediately.
AP 2025 BIG Trends & Predictions (Part 9): Next week we’ll explore a new trend and prediction — Geopolitical Conflict Makes It Tougher … For Everyone, Not Just AP and Robust AI Governance Secures Sensitive Data and Establishes Stakeholder Trust, respectively.
