Within a corporation, different finance departments have a particular role to fulfil. While functions like accounts receivable (AR), accounts payable (AP), and treasury have some overlapping concerns, they each have distinct goals and processes. As a result, these functions have historically operated in silos, with each department having its own people, processes and technology, and little appetite for cross-departmental collaboration.
What if treasury had better insight into the cash flow that the credit and collections team is bringing in so they could improve their cash forecasting? What if the credit and collections team could speed up the receipt of payments and increase straight-through processing for any of the clients using both a credit-to-cash system and an integrated payables system?
People are wary of relinquishing control over their own areas, but it’s possible to collaborate effectively without loss of control – and having different teams working together for a common goal can lead to better results across the board. Teams that work closely together can benefit from shared training and job opportunities and understanding that upstreaming or downstreaming impact of your processes can lead to decisions that improve not only your own function, but the company as a whole.
The same is true of technology. If AP, AR and treasury have multiple systems that don’t connect well with each other, inefficiencies and discrepancies can add up. Different technology partners will have their own points of contact and will provide varying levels of service. They will also differ when it comes to adopting the latest innovations and enhancements – and they will likely have inconsistent levels of investment in areas such as cybersecurity.
What’s the alternative to all the hassle? While one system to cover all these different functions might be appealing, it might not be realistic in today’s market: treasury, AP and AR teams have specific needs that can only be met by dedicated solutions including treasury management, payment hub, integrated payables and credit-to-cash solutions.
So, is all hope lost? Not yet; there is another option to consider. Working with one vendor that provides multiple integrated solutions gives you the best of both worlds. By investing in a technology ecosystem, you can adopt specialized systems for each of your functional areas, ensure these systems are fully synched, and benefit from a single point of contact for queries. It’s time to work with a vendor that has a consistent approach to enhancements, innovation and security.