Read the latest report from Forrester Consulting, commissioned by Basware, to learn about the strategies and priorities of finance leaders in 2024. In this article, we provide a snapshot of the findings and the next steps you can take with these insights.
In today's complex financial environment, marked by increasing regulatory requirements and the need for sustainable growth, finance leaders across the globe face the challenge of elevating their AP strategies. These strategies must meet and exceed goals in optimizing working capital, boosting efficiency, and managing talent internationally.
To help understand the priorities and strategies being employed, Basware commissioned the Forester Consulting Group to write a report on ‘The Total Economic Impact™ of Basware AP Automation and produce a comprehensive framework for assessing the financial implications of AP automation on enterprises.
The study engaged over 100 CFOs and Finance Executives from the US and Europe to understand their priorities for the next two years and how they are responding in their AP strategy.
Preparing for Increased Regulatory Scrutiny in 2024
Significantly, 84% of finance leaders are bracing for greater regulatory oversight in the coming year. This anticipation stems from a complex landscape of financial regulations evolving rapidly across the globe. There is worldwide pressure to elevate compliance standards for financial reporting; the trend is further intensified by the global surge in e-invoicing and tax mandates, considered one of the most effective measures for governments to combat tax evasion and close the VAT gap.
Responding With Digital Transformations and AP Automation
This foresight is catalyzing a shift towards digital transformations, with AP automation at the helm, not just as a compliance tool but as a strategic asset enhancing operational efficiency, visibility, and control over working capital.
Forrester found that forward-thinking finance leaders are utilizing this evolving regulatory landscape as a 'burning platform' to achieve the highest levels of compliance possible and accelerate automation as part of a comprehensive digital transformation strategy. This is because, beyond compliance, technology such as Basware AP Automation promises substantial cost savings, streamlined processes, improved supplier relationships, and reduced error rates.
Establishing the ROI of AP Automation
Further illuminating this conversation, the study delves into the financial implications of AP automation, presenting a compelling case for its adoption. With a net present value (NPV) of $1.12M and an ROI of 158% over three years, the results speak volumes about the efficacy of automation in transforming the accounts payable landscape.
Among the notable benefits were a 50% increase in AP clerk productivity, equating to over $830k in value, and enhancements in business user productivity totaling $200k. Moreover, optimizing working capital through early payment discounts added another $600k to the benefits, underscoring the multifaceted advantages of embracing digital transformation in the finance sector.
These findings underscore the critical role of automation in achieving compliance, maximizing productivity, and optimizing financial performance.
Next Steps You Can Take
Download the Full Forrester Report to gain a comprehensive understanding of how AP automation can transform your finance operations and contribute to strategic growth and operational excellence..
Register for the March 6th Webinar to hear directly from Edoardo Zavarella, Senior Consultant, Forrester on this report and to discuss these findings in more detail.
