5 Ways Poor Visibility Impacts Financial Shared Services Operations
The Demand for Financial Visibility is on the Rise
Controllers rank cash flow analysis as their most important job function. Specifically, 59% say improving visibility into cash flow and cash management is one of their top priorities. However, many financial shared services centers still rely on manual, paper-based accounts payable and receivable processes. This unfortunately tends to cloud their view into financial information and cash flow.
Poor visibility into payables and receivables undermines shared services initiatives in five ways.
One of these challenges for shared services visibility is long cycle times. In fact, two out of three businesses say that purchase orders, invoices, supplier correspondence and supporting documentation are not easy to find, making it difficult to respond to inquiries and process payments. Another common problem is the presence of information silos. In fact, organizations fully integrate under 5% of their accounts receivable functions across the order-to-cash cycle. Additionally, poor cash management can be the result of poor visibility into payables and receivables. Specifically, 19% of senior finance executives report that they cannot effectively manage cash according to current needs.
Another challenge that can come from poor shared services visibility is weak control and tracking. 66% of controllers, in fact, say that developing effective measures to gain visibility into overall performance of finance functions is among their top priorities. With this goal in mind, finding a solution for your organization’s poor visibility should be a priority as well. Additionally, delayed financial closes can often be the undesirable result of an organization’s poor visibility. Nearly 60% of U.S. and European finance professionals report that they are dissatisfied with the visibility into their financial close process.
Check out the full infographic to see how poor visibility impacts financial shared services operations and how an enterprise information AP automation platform can provide a complete view.