Letter from the CEO

If you have been working in accounts payable for any length of time, you know there’s nothing ho-hum about the AP profession or the IAPP. The job is never the same for long, thanks to evolving technology, the ever-changing economic picture, and the varying needs of your organization. Much the same holds true in the accounts receivable world. But let’s face it: There have been times when others might not have shared your enthusiasm or appreciation for all that goes into AP or AR.

Now, however, that perception IS changing. In addition to the tremendous buzz generated by Fusion 2010, our Annual Forum, we also recently announced that TAWPI (The Association of Work Process Improvement) will officially join our association in a joint venture that puts it, IAPP, and IARP all under the same umbrella. What does this mean to you? Well, as a financial operations professional in AP or AR, you will now receive the latest updates and information regarding process automation, document management, and more. PLUS, as a member of any one of these associations, you are automatically given access to the other two! Stay tuned for future announcements on the merger and how it will benefit you.

But wait, there’s more. Several other significant announcements also were made at Fusion 2010 in Dallas, Texas. In particular, we were pleased to announce an innovative partnership with PRGX and APQC. Together, we have developed the first AP Productivity Index, which can be used to measure your company’s progress in accounts payable. The data include information and research from hundreds of Fortune 1000 companies. We will also soon be launching industry-specific versions of the AP Productivity Index. 

Beyond that, I am most excited by the larger project that the three organizations have been working on: the Business Spend Index (BSI). AP departments have a wealth of data at their disposal and the BSI is the first attempt to use this data to build an index that tracks the economic health of the broader economy. This information will be used to advocate on behalf of AP professionals. View the latest index information at www.TheIAPP.org/apindex as it becomes available.

And speaking of advocacy … as some of you know, I have worked in the association profession for quite some time: 15-plus years and counting. I like to joke that it feels like 15 minutes … under water! That would be one reason I am no longer a standup comedian.

All jokes aside, working with professional associations is a fun and dynamic career that is constantly changing. One of the unique differentiators among nonprofit professional associations is the degree to which they advocate on behalf of their membership. Advocacy can take many forms. IAPP, for instance, spends most of its efforts communicating to CFOs and controllers on the value that well-run and professionally managed AP departments can bring to a company’s overall value. To date, this approach has been very effective for us, particularly in an economy where cash management is a critical need.

Other organizations focus their time and considerable resources lobbying federal or state elected officials or the various departments that make up our government. Not in my most creative deliberations for IAPP would I have thought there would ever be a need for us to be involved in lobbying. Why, after all, would AP ever need a lobbyist looking out for its interests in D.C.?

I can give you two good reasons: Sarbanes-Oxley and the new healthcare legislation that has consumed our nation’s political agenda for the past year. Buried within these historic bills have been major changes for those of us in AP. 

Without getting into too much detail in this letter, it is not an understatement to say that both bills (one of which we have dealt with for several years), have changed the way accounts payable departments are run. Section 404 of Sarbanes-Oxley, the most arduous component of which businesses manage, focuses nearly 60 percent of its requirements on issues directly impacting AP. Now, the new healthcare legislation has components that require exponential increases in the number of 1099s issued. Guess who will be doing this work?

So here’s the question of the day. Is it time that AP professionals had a professional advocate in D.C. to be monitoring these matters, and if we did what would we be lobbying for? Please share your thoughts with me at Tom.Bohn@TheIAPP.org. 


Thomas M. Bohn, CAE, is president and CEO of IAPP /IARP /TAWPI. He  joined International Accounts Payable Professionals in 2008 with more than 16 years of local, national, and international association experience. Under his direction, the organization formed International Accounts Receivable Professionals and merged with The Association for Work Process Improvement to create an umbrella organization for financial services professionals.