Accounts payable has traditionally been the quintessential back-office function: the cost-center in the sub-basement with the lousy office furniture and the coffee pot that doesn’t work that well.
But accounts payable has seen its star rise in recent years as more senior executives recognize the ability of fully automated accounts payable departments to drive strategic objectives such as cash flow analysis and liquidity management. Most controllers now rank accounts payable as strategic, and of vital importance to the business, per the Institute of Finance and Management (IOFM).
For starters, the enhanced visibility provided by fully automating accounts payable empowers senior management to make better informed decisions for managing finance operations and working capital. Decision-makers have ready access to the information they need to determine when to release cash. And organizations can gauge spending against budget, and quickly identify “maverick spending.”