Mike Kresse | Tuesday, June 21, 2016
In previous blog articles, I have discussed the convergence of accounts payable (AP) and accounts receivable (AR) across people and across processes.
A further component of AP and AR convergence is across technology. Whether a company is sending or receiving an invoice, there is much to be gained by reducing manual processes and moving to electronic methods either through outsourcing payment processing or automating credit and collections.
Likewise, technology is emerging which can help companies offer and receive dynamic discounting in order to optimize both AP and AR. But it doesn’t stop there. With a single stakeholder looking at AP and AR – and realizing that process efficiencies can be gained in both of these areas – there is a growing demand for technology which can not only facilitate the use of dynamic discounts but also support dispute management processes.
As more companies begin to approach AP and AR in a holistic way, technology vendors are developing a greater range of solutions which are designed to support the convergence of these areas. Companies may already be able to see significant benefits, from greater efficiencies to improved negotiating power. Further opportunities for improvement may arise as this area becomes more mature.
In conclusion, AP and AR may have been managed separately in the past, but companies are increasingly recognizing that one person’s payment is another person’s receivable. A collaborative approach to these areas can help companies optimize working capital.
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