According to the third annual Fuzzy Finance report commissioned by Basware, finance executives are increasingly concerned about the visibility of cash flow. The report noted that this was "largely a consequence of the increasing interdependence of finance systems currently within businesses and on a global scale."
Accounts payable (AP) was seen as the most critical aspect of financial records in terms of providing an accurate picture of a company's cash flow. A total of 64 percent of the 550 financial directors and CFO-level respondents surveyed – 100 of whom were from the United States – agreed that inefficient AP practices are detrimental to visibility.
"The survey suggests that organizations are looking at accounts payable with higher priority rather than merely considering it as an administrative task," said Peter Smith, editor and co-managing director of Spend Matters UK/Europe. "The wider issues in this area around control, visibility, cash management and supply chain finance seem to be increasingly understood."
Regular accounts payable audits can help companies gain insight into their financial processes. Additionally, AP audits can identify suspicious areas that may indicate embezzlement or good faith mistakes.