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New information It examines the top challenges facing finance teams in 2022: rising fraud, talent retention, late supplier payments and the relationship with procurement.
London, October 5, 2022 /PRNewswire/ – Financial experts estimate that more than £295,000 is lost to invoice fraud in the UK every year. What’s even more shocking is that 1 in 5 (20%) financial professionals don’t even know or can’t even imagine how much business invoice fraud costs. This lack of visibility can be attributed to the cluttered paper trails that are disrupting the billing process.
With invoice fraud on the rise, the question arises, who is responsible for preventing invoice and payment fraud in the business? In more than half of organizations (56%), responsibility is not shared between finance and IT.
To provide a full picture of the challenges facing finance departments, Medius partnered with Censuwide to survey 2,750 senior finance executives globally, including 501 finance executives in the UK.
The UK’s financial groups are in serious trouble on a global scale
With increasing pressure on finance teams, they face high levels of staff turnover and challenges in recruiting qualified staff – a problem that is particularly acute in the UK. 20% of finance professionals in the UK leave after 7-11 months, 10% higher than other markets. Worldwide, the average tenure in finance teams is 30 months.
As businesses struggle with high employee turnover, financial professionals are a particular flight risk. In the UK, 27% say their finance department is so busy, they worry colleagues are about to leave, and 26% report high turnover within the team. One of the problems reported by finance teams is the nature of work – 21% feel their work is dominated by monotonous and boring tasks, and 36% of professionals think they are working with outdated payment software.
London Implications for payments The UK has lagged behind in achieving automation in finance.
at the same time, London The UK lags behind the rest of the UK when it comes to automating finance departments, with only 25% of respondents tracking and measuring their automation practices. In contrast, 31% of UK finance departments track and measure automation, compared to 33% in large companies, and 43% in the US – leading the way for automation practices globally.
As a result, more than a third of finance professionals (39%) say they are unable to close their books on time and paying supplier invoices remains the biggest challenge for the finance department in 39% of UK businesses. Additionally, in the UK, businesses take the longest to process invoices at 27 days, up from 13 days. DenmarkIt takes only 14 days on average.
Accounts professionals admit that 51% of supplier payments are late
In the UK, accountants admit the majority (51%) of supplier payments are late, lower than the global average of 56%, but with significant room for improvement. FinlandWhere only 44% of supplier payments are delayed. At the same time, 98% of UK businesses say they want to use early payment discounts, and 79% offer early payment discounts themselves.
Deciding when to pay a supplier has a direct impact on cash flow but can also damage supplier relationships and the external reputation of the business. To increase transparency and aid decision-making for businesses, in 2017, the Department for Business, Energy and Industrial Strategy introduced new requirements for large businesses to self-disclose information on supplier payments.
Communication problems: 39% say the business is running out of cash
The report indicated that the relationship between procurement and finance was the main cause of late payment of suppliers. A healthy relationship between purchasing and finance can transform an organization, but a bad relationship can lead to missed opportunities for supplier discounts, increased errors and time spent managing payments, lack of transparency and control, and damaged relationships with suppliers.
In the UK, 72% of respondents said they had never worked in procurement (32%), or rarely worked with procurement (40%). When working together, 51% of respondents in the UK say they are not satisfied with the collaboration, the highest level of dissatisfaction in the markets – is at the other end of the scale. DenmarkOnly 4% of respondents are not satisfied with communication.
Jim LussierCEO Medius said: “Invoicing fraud is on the rise, global supply chains are becoming more complex. Finance and API teams face many challenges in an increasingly complex business environment. They need technology to move from automation to elimination – eliminating invoices, fraud and wasted time.” As a technology provider on redundant manuals, we still have work to do to help them solve these challenges and we are 100% focused on doing so.
Kevin CandyDirector of Research, Financial Applications at IDC, comments: “Over the past three to five years, we’ve seen finance and procurement teams play a game of ‘Whack-a-mole’ as they respond to global economic fluctuations and rapid digitization of processes. Not surprisingly, they’re struggling to keep up with ever-evolving customer expectations, heightened risk and vulnerability, and the challenges posed by global supply chain issues. It’s a tough environment for even the strongest teams.
About the information
The survey was carried out by Chancewide and included 2,750 senior and above finance executives who make final decisions and/or have ultimate responsibility for financial matters in organizations with over 50 employees in the UK (501 respondents). America (1,004 respondents) Australia (352 respondents) Finland (126 respondents) Denmark (103 respondents) The Netherlands (306 respondents) Sweden (255 respondents) and Norway (103 respondents) The study was conducted among them 27.04.2022 – 10.05.2022. Census honors and employs members of the Market Research Association based on ESMAR principles.
About medius
Medius Links to replace the stress and surprise of managing invoices, processing and payments with ease and confidence. Medius goes beyond basic automation by using artificial intelligence to do most of the work – so invoices are verified, coded and paid; AP teams go home and rest easy; And businesses can trust their budgets and forecasts. Visit medium.com to learn more.
For more information please contact:
Francesca CahillFight or flight for Medes
[email protected] / +44 330 133 0985
This information comes from Cision http://news.cision.com.
https://news.cision.com/medius/r/invoice-fraud-costs-the-average-uk-business–295-000–a-year-as-finance-professionals-struggle-to-ke c3642731
Source Medius
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