Today’s climate has inevitably led many business leaders to rethink their strategies and to look again at ways in which to maintain corporate profitability.  Increasingly, in many instances the focus has fallen on Accounts Payable departments to come up with the goods.

Therefore, it came as no surprise that 81% of all our survey respondents highlighted “cost reduction” as the number 1 challenge facing AP in 2009.  In fact, more than 50% of AP professionals pointed out that it was a direct requirement that they should cut costs within their departments this year.  Hot on its heels – and closely related in terms of outcome – was “process improvement” with 80% saying that this represented their second most important challenge.  This was followed by the need for “increased control” within Accounts Payable, with 77% of respondents saying this was the third most important hurdle for them.

It’s How You Do It That Counts

The main problem areas highlighted by this survey were keeping track of invoices (72%), making payments on time (71%) and managing the master vendor file (56%).  Recognising these problems is the first step towards moving forward – the next is to implement the right changes to tackle the problems head on.

These were tackled through creating process efficiencies (63%) and cutting costs (36%).  Some of the key actual methods quoted were centralisation of invoices, changing payment frequency, more electronic payments and receiving invoices electronically.

Not Just Another Brick in the Wall

Interestingly, almost 70% of all respondents said that yes, they would want to join an AP organisation.  This is a dramatic increase from the 33% who said that they would be interested in 2008.  The reasons for this are likely to be twofold.  In a shrinking economy, networking with likeminded individuals can help keep you updated on ideas about best practice and the latest industry developments.  Secondly, at a time when job security isn’t a given, a recognised certification not only makes individuals more employable – it is also a testament to their commitment to the profession.

If You Don’t Learn – How Will You Know?

With the recent launch of IAPP-UK, we asked respondents what they’d find most useful in the IAPP-UK website.  Overwhelmingly, the two most important functions of the site were highlighted as advice on best practice (25%) and access to AP tools (policies, checklists, templates) (24%).  Unsurprisingly these results clarify their previously identified reasons for wanting to become members of an AP organisation.

Conclusion

In conclusion, this survey highlights Accounts Payable, like other core support functions within an organisation, are generally looking to cut costs throughout the year by creating process efficiencies using best practice methods and purchasing tactical software.

Also, within a tough economic climate, it is essential to ensure your Accounts Payable team is supported through constant learning and training, which is affectively facilitated through an organisation such as the IAPP-UK.

Extracted from the Accounts Payable Survey 2009 conducted by Accounts Payable News® and sponsored by FISCAL Technologies, Accounts Payable® and the International Accounts Payable Professionals-UK (IAPP-UK)
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