Today’s market constriction has forced A/P to step up and play a more pivotal part of overall company operations.
Many A/P departments have seen their roles expand steadily over the past few years. Several factors are responsible for the expansion, such as a rising focus on cash management because of tightening credit markets and increased uncertainty about the economy.
In addition, the growing increase in automation has resulted in the average A/P department being more visible — and more service oriented.
Check out the graph below (based on a recent Aberdeen Group study) to see which category your A/P department falls into:
Despite these findings, the study also found that almost half of A/P departments are without a formal, strategic plan. If your A/P department’s role has rapidly become more strategic, it may be a good idea to sit down with that department and iron out the exact steps it needs to take to achieve future goals.
