Eight in ten finance chiefs preparing for greater regulatory scrutiny in 2024

Eight in ten finance chiefs are prioritising preparing their departments to operate under increased regulatory scrutiny, according to a new global study.

The research, commissioned by Basware, a global leader in AP automation and invoice processing and conducted by global research and advisory firm Forrester Consulting, revealed that 84% of finance leaders said that adapting to stricter compliance standards was a critical or high priority for the year ahead.

As organisations worldwide face pressures to elevate their compliance standards, the trend is being further intensified by the global surge in e-invoicing and tax mandates, considered one of the most effective measures for governments to combat tax evasion and close the VAT gap.

The study was developed by interviewing four respondents with experience using Basware and surveying 108 finance leaders, with responsibility for accounts payable (AP) automation in the US and Europe, about their priorities for the next two years.

The results were aggregated and combined to form a single composite organisation to evaluate the potential financial impact of Basware AP Automation on their organisations. The sample included directors, C-level decision-makers and budget holders including CFOs and Finance Directors.

82% of respondents cited ‘attracting and retaining talent’ within the finance team as a high priority for the year ahead. Inflationary pressures and high interest rates also saw finance leaders look to reduce costs, with 82% saying that improving cashflows was of great importance this year.

Other key measures listed included managing cost optimisation (82%), increasing efficiency (81 per cent) and driving digital transformation (79%). Finance leaders also cited automation of accounts payable as a critical priority towards delivering digital transformation with 84 per cent saying it was a major priority for the year ahead.

When asked how AP automation will impact their business, 57% listed improving efficiency as a key outcome, with 52% saying the process would improve their organisation’s overall ESG footprint.

Jason Kurtz, CEO at Basware, said: “In an increasingly complex regulatory environment, CFOs cannot risk operating at anything less than the very highest industry benchmarks.

With manual processes open to errors and delays, forward-thinking finance leaders are taking advantage of upcoming invoicing mandates as a ‘burning platform’ to not only achieve the highest levels of compliance but also accelerate automation as part of a comprehensive digital transformation strategy.”