Our pick for this week's top stories in accounting and finance
Mary C. Driscoll— How much is your accounts receivable process costing you? There are many ways revenue can leak in the AR process: late payments, weak recovery processes, and write-offs levels that have climbed too high, writes Mary C. Driscoll on cfo.com. However, before you go chasing down money leaks in search of savings, you should first take a look at the overall cost of AR, starting with the cost of generating and delivering an invoice.
According to data from APQC, a non-profit business benchmarking and research firm, the mean cost per invoice is $3.17. But, there’s a huge gap between top performing companies, who spend just .71 cents per invoice, versus $11.50 per invoice for the poorest performing. For companies whose costs are above the median, maybe it’s time to get key managers in a room to talk.
Kaitlyn McAvoy (@KMcAvoySM)—Mexican and Latin American companies have become leaders in e-invoicing adoption. While government mandates aimed at stopping VAT evasion drove initial adoption, and government has been the biggest beneficiary, companies are also starting to realize benefits.
Companies using e-invoicing systems to their full potential reported greater process efficiency, better data and analytics to drive savings and make business decisions, and easier integration between procurement and payables processes.
ePayables 2016: AP’s Perception Problem – CPO Rising
Andrew Bartolini and Matthew Delman (@andrewbartolini /@mattdelman)—AP is consistently marginalized as a tactically focused group that can only offer the enterprise benefits in the form of cost and process efficiencies, writes Andrew Bartolini on CPO Rising. According to the firm’s latest AP research report, this perception persists despite the broad-based transformation occurring in the industry today. With technological advances streamlining AP and making teams more strategic, it’s vital AP work to change perceptions, since perceived value is critical for getting resources and technology. Building strong internal relationships, aligning with larger corporate goals, and contributing insights from data are all important elements of that effort.
Fintech: The New World Order and its 5 Pillars — Business.com
Oscar Jofre (@oscarjofre)—Financial Technology, today called fintech, has been around for a long time. Think ATMs, magnetic stripe readers, and cameras in bank vaults to televise paper account records (see item below). What’s different about fintech today is the amount of investment flowing in, and its pervasiveness, says Oscar Jofre writing on business.com. Fintech startups are nibbling at every area of finance—banking, capital markets, private equity, insurance, legal, and regulatory—and causing companies to rethink the way they do business.
London Bank Televises Files from Remote Site – American Banker
@AmerBanker—With digital technology disrupting banking and finance, the folks in the back office are feeling the pressure to change. Change is not easy, but you can’t fight it forever. That’s why we’re loving the “Flashbacks” series American Banker is running to celebrate its 175th birthday.
Nothing puts change in perspective like knowing that in 1950, a London bank made headlines in the publication by installing a TV receiver so that any document stored in the bank’s out of town vault could be held up to the camera and viewed on the TV at headquarters. To find other instances where “the way we’ve always done it” gave way to new, better ways of doing things, simply toggle the year on the “Flashbacks” page and travel back through banking history.