Latest news with #Basware
Yahoo
4 days ago
- Business
- Yahoo
Basware: CFOs and CIOs clash as SAP migration deadline looms
ERP migrations exposing companies to compliance breaches amid $100bn transformation wave CHARLOTTE, N.C., May 28, 2025 /PRNewswire/ -- CFOs and CIOs are fighting over finances and key resource allocation amid tariffs and the looming SAP S/4HANA migration deadline fast-approaching in 2027, analysis reveals from Basware. With over 22,000 companies worldwide impacted by the upcoming migration, the urgency to act before the deadline grows each day. Tighter budgets causing migration uncertainty According to data, approximately 61% of SAP customers using older Enterprise Resource Planning (ERP) systems have not yet licensed S/4HANA. As the latest version of SAP's business management software, S/4HANA represents a significant transformation – one that many enterprises still need to undertake as the 2027 migration deadline approaches. Failure to migrate by the cut off will result in the loss of official SAP support, and reduced access to future product innovations – both of which can lead to increased operational costs and technical risk for businesses. The SAP S/4HANA migration market represents a $100bn opportunity, as enterprises look to modernize their systems, streamline operations and enhance compliance. Amid ongoing global economic uncertainty, enterprises are under pressure to scrutinize every dollar of spend, from finance operations to new AI investments, causing a rift between CFOs and CIOs who are battling to align on spending priorities. "For some, SAP S/4HANA is just a technology migration. But forward-thinking enterprises are taking the opportunity to drive real, wide-scale transformation, focusing on ROI, simplifying their ERP landscape and establishing a clean digital core" said Mark McCarthy, CRO of Basware. "As the great SAP migration continues, the real opportunity is making the investment count – and that means aligning finance and IT around outcomes that matter." ERP migrations costing hundreds of millions over several years ERP systems such as Oracle NetSuite, Microsoft Dynamics 365 and SAP S/4HANA Cloud are used to manage the entire IT process of businesses by tracking all aspects of production, distribution, financials, HR and back office. ERP upgrades can cost large enterprises upwards of $100 million, rising to $500 million depending on the complexity and size of the organization. These projects typically span multiple years, involving significant resources for software, implementation, training and ongoing support. For CFOs, this creates financial holes due to uncertain ROI, business disruption risks from potential downtime, and hefty implementation fees for the technology. Add to that skills gaps for SAP talent, the cost of training, and the lack of financial transparency during migration, it's more important than ever for CFOs to gain complete control over functions such as invoicing, especially when integrating platforms into ERP environments. Meanwhile, CIOs are battling with opposing challenges including outdated systems, poor data quality, which can lead to errors and inefficiencies. Where boardroom alignment can be found is in artificial intelligence, with 75% of CFOs advocating for greater investment in AI to automate critical financial processes such as e-invoicing compliance and regulation – which play a pivotal role in the broader SAP S/4HANA migration strategy. McCarthy added: "Every month of delay brings greater compliance risk, uncertainty and escalating costs. Forward-thinking enterprises are acting now – extending their ERP strategy with specialist solutions that align to SAP's clean core principles. Basware is already supporting over 600 enterprises running SAP ERP systems, including over 100 large organizations using Basware alongside SAP S/4HANA. By managing this complexity with Invoice Lifecycle Management platforms, they're able to achieve full automation, compliance, and visibility in accounts payable." How companies are navigating ERP migrations The 2027 migration deadline is a top priority for companies, including healthcare wellness company Empire Portfolio Group, materials manufacturer KION and industrial minerals producer Imerys. "We needed a state-of-the-art process to complement our Shared Services Centres rollout and prepare the implementation of SAP S/4HANA," said Christophe Boden, VP of Shared Services and Continuous Improvement at Imerys. "Basware emerged as the ideal solution provider to digitize our AP (accounts payable) operations and drive process efficiencies." North American manufacturing giant Mauser has also overhauled its accounts payable operations in light of the upcoming deadline, integrating Basware with its existing SAP ERP system. The 'plug and play' approach allowed Mauser to streamline invoice processing without adding complexity – keeping its ERP setup simple while gaining greater automation, visibility and faster approvals. As a result, approval time for non-PO invoices from 3.6 days to 1.6 days. By integrating Invoice Lifecycle Management solutions into its ERP system, Mauser has significantly reduced manual touchpoints, cutting the time spent on matching purchase orders and invoices by 90% and reducing overall manual matching by 71%. To help enterprises navigate ERP migrations, Deloitte and Basware recently expanded their partnership with a new, practice-based Center of Excellence, in response to increasing demand driven by SAP S/4HANA migrations. Combining Deloitte's deep finance and compliance expertise with Basware's platform, the collaboration is designed to accelerate digital finance transformation and ensure ERP migration projects are complete before the 2027 deadline hits. About Basware Basware is how the world's best finance teams gain complete control of every invoice, every time. Our Intelligent Invoice Lifecycle Management platform ensures end-to-end efficiency, compliance and control for all invoice transactions. Powered by the world's most sophisticated invoice-centric AI – trained on over 2 billion invoices – Basware's Intelligent Automation drives real ROI by transforming finance operations. We serve 6,500+ customers globally and are trusted by industry leaders including DHL, Heineken and Sony. Fueled by 40 years of specialized expertise with $10 trillion in total spend handled, we are pioneering the next era of finance. With Basware, Now it all just happens.™ Glossary of Terms SAP S/4HANA - an enterprise resource planning (ERP) system from SAP unifying business operations in real-time using AI and machine learning. It acts as a single business suite bringing together core functions including finance, sales, procurement, marketing, HR and more. ERP – business management software that integrates and automates core business processes in a single system. ERP Migrations – the process of moving to a new ERP system, transferring data, business processes, configurations and integrations. Manual Touchpoints (in the release context) - managing invoice processing on the edge with Basware, rather than customizing the SAP core. SAP 'Clean Core' - an approach that encourages enterprises to avoid over-customization of the ERP system, keeping the core standardized for easier upgrades, stability and innovation adoption. 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Yahoo
21-05-2025
- Business
- Yahoo
UK business arrears to HMRC hit £28bn per month
Business arrears to the UK's HM Revenue and Customs (HMRC) have averaged £28bn ($37.54bn) per month, as companies face increased national insurance (NI) costs and the economic impact of US tariff hikes. These figures, obtained by HMRC through the Freedom of Information Act, highlight the unpaid debts pursued by the tax authority in Q1 2025. Corporation Tax debt arrears have averaged £7bn monthly, with figures reaching £7.52bn in January, £7.14bn in February, and £6.79bn in March. Unpaid VAT liabilities have averaged £12bn per month, with £12.55bn in January, £12.58bn in February, and £11.97bn in March. Late PAYE payments, including NI contributions, have averaged £8bn monthly, with £8.71bn in January, £8.51bn in February, and £8.16bn in March. Basware CEO Jason Kurtz said: 'Our systems are detecting a substantial spike in invoice rejections as businesses scramble to renegotiate contracts, many shellshocked by tariff trauma of the last few weeks. Kurtz explained: 'In response to the economic turbulence, it is likely companies are stockpiling their reserves and putting off paying tax liabilities in an effort to preserve cashflows. 'What's concerning is that economic turbulence also creates fertile ground for fraud, with businesses falling victim to payment fraud schemes including vendor impersonation, duplicate invoices, and manipulated payment details.' Greg Watson, CEO of anti-money laundering platform Napier AI, believes that the surge in 'economic uncertainty and volatility' is fostering greater opportunities for financial crime. Watson noted that certain companies are established solely to perpetrate financial crimes, channelling illegal funds through vulnerabilities until detection is too late. He said: 'There needs to be increased scrutiny from institutions that are enabling businesses with financial services. Many of whom have passed rigorous due diligence checks at the time of onboarding. 'These institutions need to be doing ongoing monitoring for suspicious activity, using AI to detect anomalies. If we only catch it once the tax is overdue, we have already missed the opportunity to prevent financial crime in real-time, at its source.' An HMRC representative concluded: 'We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances. "UK business arrears to HMRC hit £28bn per month" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
20-05-2025
- Business
- Yahoo
Invoice rejection spike suggests tactic's use as tariff buffer, study says
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Global businesses rejected 6.95% of the total of 272 million invoices received during the first quarter, compared to 1.86% during the year-earlier period, according to an analysis of invoices by Basware, a Helsinki, Finland-based financial automation company. The rise in rejections roughly coincides with the start of the U.S. trade war — initially kicked off about a third of the way through the quarter by President Donald Trump in February — which complicates the invoice process as rate fluctuations and changes in prices require additional administration that needs to be reflected in invoices, according to a release on the findings of the analysis reviewed by CFO Dive. 'The U.S. tariff situation is creating stress in an unintended place — finance operations and specifically invoice processing,' Jason Kurtz, CEO of Basware said in a statement included in the release. 'Similar to the supply chain disruption experienced during the pandemic, it suggests companies are using payment delays as a financial buffer against economic uncertainty.' Days sales outstanding, or the average number of days it takes a company to get paid for a sale, is a measure of cash flow health that is closely watched by CFOs and accounts receivable professionals. On the other side of the table are companies that are vetting invoices before paying them, sometimes declining for good reason to pay based on a variety of administrative or business concerns. These include incorrect purchase order numbers, missing tax information or regulatory discrepancies, disagreements over billed amounts, or suspicious vendor information, according to Basware. It's up to businesses to manage their deals and address any true problems driving genuine rejections to avoid long-term damage to relationships between the buyer and suppliers, Kurtz said in an emailed response to questions. 'While rejection can result in a delay, it doesn't mean the supplier won't eventually be paid,' Kurtz said. But the spike in rejections suggests that increased rejections are not driven by simple administrative mistakes but rather by some companies that are seeking to renegotiate agreements or blocking payments to stockpile cash, Basware asserts. 'It's a sign that businesses are under significant stress,' Kurtz said. The findings were included in Basware's Invoice Rejection Analysis, which examined volumes and rejection rates across 272 million invoices throughout 2024 and Q1 2025. Sign in to access your portfolio
Times
19-05-2025
- Business
- Times
US tariffs lead companies to save cash by rejecting invoices
Global businesses rejected two million more invoices in the first three months of the year than in the same period last year, as companies scrambled to stockpile cash and delayed paying their suppliers under the threat of a tariff war. In the first quarter of 2025, 2.9 million invoices were rejected, up from about 750,000 over the same period last year, according to Basware, an invoice processing business. Payment delays for suppliers rose to the highest level since the pandemic, which Basware linked to the imminent announcement of tariffs by President Trump on April 2, demonstrating the effect of the proposed levies on global supply chains. Of the more than 270 million invoices monitored by Basware, close to 7 per cent were rejected between January
