Nearly 80% of business leaders believe that cash flow and management are important, but less than half are actually managing it.
That’s the takeaway from a recent survey on financial ecosystems, highlighted in an article on The Strategic Sourceror website.
The survey, released by the Aberdeen Group, examined how “accounts payable, accounts receivable, trade finance and global payment management” are valuable strategic tools in the modern financial ecosystem.
While respondents overwhelmingly agreed that these tools are important, only about half indicated they actually have financial capabilities that include “standardized payment processes, visibility into all stages of electronic payment processes, documented processes for payments shared internally and externally, and cross-functional coordination of payments between procurement,” according to The Strategic Sourceror article.
To sum that up, business leaders know that cash flow visibility is important, but they’re still not doing it.
For organizations driving at least half of their revenue selling labor services, automation of accounts payable is critical. Their job costing system, project management, and service call dispatch systems must be integrated with financial accounts payable, accounts receivable and financial management. Purchasing parts and paying subcontractors, expenses, and customer invoices are all key parts of their financial management system.
The study did find that more than 70% of companies do anticipate centrally managing their accounts payable, accounts receivable, trade finance/trade partner and global payment management departments.
The Strategic Sourceror, October 2012