Gaining Comprehensive Spend Visibility With A Source-To-Pay Solution
Spend Visibility Software
Corporate financial professionals have long sought to gain comprehensive and actionable insights into the companies spending data. This data is typically stored in multiple systems, which prevents any deep dive analysis from taking place. Furthermore, it is difficult to gain holistic view into spending trends and anomalies, and many manual processes are in place which makes creating the kind of actionable analyses that CFOs need even more laborious.
Fortunately, businesseseeking full visibility into their spending can employ source-to-pay solution. This type of solution, sometimes called source-to-settle, is designed to provide both detailed and holistic view into spend data by consolidating multiple systems into single workflow. With this type of solution, CFOs are able to gain better understanding of where, when, and how their money is being spent.
For executives looking to employ source-to-pay software, the following eight-step guide provides an overview of the steps to take to achieve full spend visibility up and running:
Step 1: Assess the effectiveness of current spend visibility methodology.
The first step is to assess the effectiveness of the existing system for analyzing and tracking spend data. Here, an organizationshould review the existing system to identify any potential roadblocks to gaining comprehensive view of spend data. This review should also include an analysis of the associated manual processes as well as any potential data integration points.
Step 2: Understand the data requirements for source-to-pay software.
The next step involves understanding the data requirements for the source-to-pay solution. In order for the system to be successful, an organization must be able to provide data from all of the relevant sources this includes data from internal systems such as accounts payable, accounts receivable, and vendor management systems, as well as external sources such as supplier invoices and credit cards. it is also important to know the data architecture required for source-to-pay software, as well as the associated budget needed to implement it.
Step 3: Establish initial project goals.
Before beginning the implementation process, the organization must establish initial project goals for the source-to-pay system. In setting the goals, an organization must identify the specific requirements for the system, such as the desired degree of visibility and the desired speed of processing. Armed with this information, an organization can determine the best way to proceed with the project.
Step 4: Identify members of the project team.
The next step is to identify project team. This team should include both members of the organizations financial department as well as members of the IT team. it is important to ensure that the right people have been selected for the project, as they need to understand the goals of the project as well as the requirements for the source-to-pay system.
Step 5: Select source-to-pay solution that meets the requirements.
Once project team has been identified, the process of selecting source-to-pay solution begins. Selection criteria should include such factors as cost, performance, scalability, integration capabilities with existing systems, and user experience. After the evaluation process is complete, the organization must make selection based on the requirements and desired outcomes established in the first two steps.
Step 6: Configure the source-to-pay solution.
Once the source-to-pay solution has been selected, it must be configured to meet the needs of the organization. Here, the project team should ensure that the system is able to integrate with all existing data sources, as well as any third-party systems that might be necessary. Furthermore, the team should also configure the system to enforce all desired spend policies.
Step 7: Establish process for data entry and review.
Before the source-to-pay system can be put into use, process must be established for data entry and review. The data entry process should be thoroughly vetted to ensure that it is meeting the organizations requirements. Additionally, the process should be designed to allow for frequent review and analysis of spend data.
Step 8: Monitor and adjust the source-to-pay system.
The final step is to monitor and adjust the source-to-pay system. Monitoring and adjusting the system regularly is necessary to ensure that it is meeting the goals set at the beginning of the project. Furthermore, such monitoring and adjustment will also help the organization to determine if any changes are necessary to their spend visibility methodology.
By employing source-to-pay solution, financial executives can gain comprehensive and actionable insights into the companies spending data. With consolidated view into spending data from multiple sources, CFOs can identify inefficiencies, uncover spending anomalies, and create comprehensive reports that provide actionable insights into their spending. With well-defined 8-step plan, executives can go from assessing their current spend visibility methodology to achieving full spend visibility in no time.
