Money in, money out: How the best finance teams are running AR & AP in 2025, with Howard Katzenberg
In this episode of The Growth-Minded CFO, we delve into the evolving role of the Chief Financial Officer with guest Howard Katzenberg, CEO of Glean.ai - specifically focusing on what innovative approaches to two seemingly 'transactional' processes can do for your business.
With our co-host Alex Louisy (CEO of Upflow) representing the world of Accounts Receivable (AR), Howard brings the other side of the coin with Accounts Payable (AP).
This episode explores how modern financial teams and tools are rethinking traditional processes like AR and AP and what that means for CFOs aiming to drive strategic growth within their organizations.
Mindset Shifts in Accounts Receivable (AR) and Accounts Payable (AP)
One central theme of the episode is the need for a mindset shift in how companies view AR and AP processes. Traditionally considered purely transactional back-office functions, AR and AP are increasingly seen as strategic elements crucial to customer and vendor relationships, as well as financial health.
Alex and Howard emphasize that AR is about more than just securing revenue—it's about fostering strong customer relationships and ensuring the company's continued ability to invest and grow. Similarly, AP is not just about paying bills; it's about managing expenses strategically to maximize profit.
Disrupting Traditional Processes
Both Howard and Alex are at the forefront of disrupting traditional finance operations with innovative tech solutions.
Howard recounts his experience as a CFO and how the need for better vendor expense management led to the creation of Glean.ai.
" I'll go back to my founding story. Late 2019, I was CFO at Better and decided to do an audit with my FP&A team of our vendor expenses. And I'm sure you guys have done this before, but that's not a pleasant process.
We basically pulled a list of our top 50 vendors and then try to figure out what were the last 12 months of invoices for these vendors and we had to locate those. Then we did a manual analysis just trying to understand what are we purchasing with these vendors? Does it make sense given the nature of our business? Where can we consolidate some of these relationships? Who are the vendors we don't need anymore? Where are the relationships where maybe we can move from a monthly plan to an annual plan? Who has the upcoming renewals? Can we get other quotes and negotiate these vendors down? Where are there potentially errors on the bills?
So, you know, through that exercise, which, by the way, is very painful....and my team hated me by the end of the three-week exercise...We found a lot of like savings opportunities across the board."
By integrating robust analytics and insights, Glean.ai helps companies achieve a clearer understanding of their vendor expenses, enabling smarter decision-making and stronger spend culture.
In the episode, Alex shares a similar perspective regarding Accounts Receivable. His company, Upflow, reimagines AR, moving away from the chaotic spreadsheet-driven processes to a more structured, analytical approach. He stresses the importance of understanding financial performance and possessing a comprehensive view of customer relationships to enhance cash flow and reduce financial risk.
Both advocate for a more collaborative approach to finance, emphasizing the significance of communication and partnership between finance and other departments. This interconnectedness enables better financial forecasting, risk management, and overall business strategy execution.
The Strategic Role of the CFO
The discussion highlights the evolving role of the CFO from a purely financial steward to a strategic partner in business planning and operations. Utilizing advanced financial tools allows CFOs to move beyond traditional responsibilities—automating repetitive tasks while focusing on strategic growth initiatives. By enabling finance teams to efficiently manage AP and AR, these tools free up valuable time for CFOs to engage in high-level strategic planning and execution.
Key Takeaways:
Embrace the Mindset Shift: View AR and AP as strategic assets, not just routine processes.
Leverage Technology: Adopt modern tools to gain insights, save time, and boost efficiency.
Build Collaborative Cultures: Foster cross-departmental partnerships to enhance decision-making and strategic planning.
Continue to Evolve the CFO Role: The CFOs of today must think like CEOs, driving innovation and growth while managing financial health intricately.
The insights shared by Howard Katzenberg and Alex Louisy in this episode reiterate the pivotal role technology and mindset shifts play in advancing the finance function. By embracing these changes, CFOs can position themselves as strategic leaders, steering their organizations towards long-term success. The future of finance is not just about balancing books but about unleashing growth potential through smarter analytics and bolder strategic action.
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