Expert Knowledge on Digitalization & Automation of Business Processes
Expert Knowledge on Digitalization & Automation of Business Processes
Topic: AP Automation | SAP
SAPinsider, one of the largest and fastest-growing SAP membership groups worldwide, conducted a survey on cash management and cash visibility in 2022 As an official sponsor of the report, we are happy to share some of the core insights of the related study report in this blog article.
Changing social and political conditions around the globe, fragile supply chains, and constantly high inflation rates as well as the big quit: Since recent years, the economy is shaped by uncertainty. This led to a change in everyday business life, that caught even the most well-prepared organizations off guard. In this uncertain time, organizations need effective cash management and cash visibility to stay on target and help enable corporate strategies.
A survey conducted by SAPinsider between April and June of 2022 reveals that executives, especially those in finance, are demanding more accurate, timely, and harmonized cash reporting. Cash flow visibility is crucial for effective cash management and accurate financial reporting. Forecasting cash needs has always been an important part of sound business management, but it has become even more critical in recent years. Due to uncertainties in global supply and demand, executives are struggling to accurately predict cash flows amid sudden and dramatic changes in revenue and costs.
According to the survey, over a third of respondents identified the increasing complexity in cash forecasting as the top pain point impacting the cash management process. Notably, nearly the same number of organizations view procure-to-pay as a major pain point as well, as the process is often manual and time-consuming, which can lead to delays in getting invoices approved and payments processed. Inefficient end-to-end cash management processes can limit executives' ability to forecast accurately for their organizations.
The study also reveals several key strategies and investments that the organizations SAPinsider interviewed are prioritizing in their approach to cash management and cash visibility. Building end-to-end visibility across cash management functions, workflows, and processes, applying integrated solutions to connect cash management and accounting for faster access to high-quality data, and accelerating revenue recovery are among the key strategies.
End-to-end straight-through payment processing, end-to-end invoice automation, and deep integration of cash management with ERP for seamless, real-time data exchange represent the most important requirements that organizations according to SAPinsider are prioritizing. Respondents are leveraging SAP products to automate cash management processes such as SAP Cash Management, SAP S/4HANA Finance, SAP S/4HANA for Receivables Management, SAP Cash Application, SAP Billing and Revenue Management, and SAP S/4HANA Advanced Payment Management.
In conclusion, in uncertain times, effective cash management and cash visibility are crucial for organizations to survive and thrive. Forecasting cash needs and managing procure-to-pay processes are major pain points that need to be addressed. Building end-to-end visibility across cash management functions, workflows, and processes and accelerating revenue recovery are among the key strategies that SAPinsider organizations are prioritizing. End-to-end straight-through payment processing, end-to-end invoice automation, and deep integration of cash management with ERP for seamless, real-time data exchange are the most important requirements that organizations are prioritizing according to SAPinsider. Organizations that prioritize and invest in cash management and AP automation technology initiatives will be better positioned to navigate the uncertain economic landscape and make informed business decisions.
If you want to learn more on the subject, you can download the full report here.