Deeper collaborations between payments groups and treasury teams help drive systems' convergence. Wadiwala and Patri identify several beneficial outcomes of merging payment activities with treasury systems and processes, including those related to:

The bottom line. Stronger partnerships between A/P and treasury groups can result in faster payments to suppliers and better optimization of early-pay discounts. "Convergence among treasury payments solutions is helping organizations gain greater visibility into end-to-end cash and liquidity balances across bank accounts and legal entities," Patri explains. This, in turn, helps enable better planning and forecasting for funding investment needs, optimizing borrowing costs, and (in some cases) boosting investment returns. "This is a critical benefit of convergence, given current financial market conditions—particularly rising interest rates," Patri emphasizes.
Working capital management. "Treasury gets insight into valuable data," Wadiwala notes, while A/R and A/P enhance their contributions to the company's working capital.
Risk management. Convergence gives treasury and A/P groups quicker access to more data and insights concerning compliance requirements, such as Know Your Customer (KYC) verifications.

The convergence of A/R, A/P, and treasury processes and systems ultimately helps organizations receive customer payments faster, gain access to data that strengthens strategic decision-making, and manage cash and liquidity risks more effectively. These benefits, Wadiwala concludes, help "improve operational efficiency."

See also:

Instant Insights /

Next-Level Efficiency Opportunities for A/R and A/P

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