Accounts Payable is the Foundation of Every Financial Report and Dashboard

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Accounts Payable Strategy

Why Accounts Payable Is the Foundation of Every Financial Report

Accounts Payable is often treated like a back office function. In reality, the way invoices are processed, coded, approved, and recorded has a direct impact on financial reporting, internal controls, and how clearly a company understands its own spending.

By Robert Ruhno | Accounts Payable Professionals | March 2026

AP Is Closer to the Start of Financial Truth Than Most People Realize

Most people describe Accounts Payable as a simple process. An invoice comes in, it gets coded, approved, and paid.

But that description misses what is actually happening.

In many organizations, AP is one of the earliest points where non-payroll spend becomes formally captured and entered into the accounting system. When an invoice is processed, it does more than trigger a payment. It creates a liability, records an expense, and feeds the general ledger, which ultimately drives financial reporting.

That means AP is not just processing transactions. It is helping define how financial reality is recorded.

And when something goes wrong here, it rarely stays contained. It shows up later in reports, dashboards, reconciliations, and audits.

AP Does Not Just Process Spend, It Shapes How Spend Is Recorded

Every invoice processed through AP creates downstream impact:

• Coding determines how expenses appear in reports
• Timing determines which financial period the cost hits
• Vendor setup determines how spend is grouped and analyzed
• Approvals determine whether controls are working as intended

These are not small details. They directly influence how leadership understands the business.

If coding is inconsistent, reports become harder to trust. If vendor records are messy, spend visibility breaks down. If invoices are recorded late or incorrectly, financial statements can shift in ways that are difficult to explain.

Reporting teams, auditors, and finance leaders all depend on this layer of data being right.

Key takeaway: Financial reports are only as reliable as the transaction data feeding them. Accounts Payable is one of the most important sources of that data.

Better Reporting Starts With Better AP Discipline

Many companies invest heavily in dashboards, reporting tools, and analytics platforms.

But those tools can only reflect what they are given.

If AP processes are inconsistent, the output will be inconsistent. The dashboard may look clean, but the underlying data may not fully reflect reality.

When AP runs in a structured and disciplined way, the difference becomes clear:

• Spend is easier to categorize and analyze
• Accruals and cutoffs become more accurate
• Vendor activity is easier to trace
• Exceptions stand out faster
• Audit trails are stronger and easier to follow

This is not just process improvement. It is building a stronger financial foundation.

AP Is a Key Control Point Before Cash Leaves

In many organizations, AP acts as one of the final checkpoints before payment is released.

At this stage, issues can still be caught:

• Duplicate invoices
• Incorrect coding
• Unusual amounts
• Vendor changes
• Missing approvals

AP is not the only control layer. Procurement, system controls, segregation of duties, and management oversight all play a role.

But AP is often where those controls come together in practice.

That is what makes it such a critical part of the overall control environment.

Spend Visibility Depends on AP Structure

Leadership teams rely on financial data to answer basic questions:

• How much are we spending with this vendor?
• Why are costs increasing in this category?
• Where are the exceptions happening?

The reliability of those answers depends heavily on how AP is structured.

When vendor data is clean and coding is consistent, answers are clear. When it is not, teams spend time validating data instead of acting on it.

Fraud Risk and Audit Issues Often Start in the Gaps

Fraud in AP rarely looks obvious. It often appears as normal activity:

• Vendor bank change requests
• Similar-looking invoices
• Urgent payment requests

Weak processes make these issues harder to detect.

The same pattern shows up during audits. Missing documentation, inconsistent coding, and weak approval trails usually build over time, not at year end.

Strong AP controls reduce risk and make audits smoother by improving documentation, consistency, and traceability.

AP Has Been Described Too Narrowly for Too Long

AP is often described as data entry or invoice processing.

But in practice, it directly affects whether financial information is:

• Accurate
• Timely
• Consistent
• Usable for decision-making
• Strong enough for audit and compliance

That is not just an operational role. It is part of the financial infrastructure of the business.

Final Thought

Companies that invest in AP tend to see the difference in their numbers. Reports are easier to trust. Variances are easier to explain. Audits are easier to manage.

Companies that do not often end up with clean dashboards on the surface and confusion underneath.

The question is simple.

Do your reports reflect what is actually happening, or are teams spending too much time explaining numbers that should have been clear from the start?

About Robert Ruhno

Robert Ruhno is the founder of the Accounts Payable Professionals Group and the publisher of AP-Professionals.com. He writes about AP operations, controls, vendor risk, automation, careers, and the processes that drive financial accuracy.

Follow more articles, resources, and community updates at AP-Professionals.com.

READ MORE ON AP-PROFESSIONALS.COM

Sources and Further Reading

• Accounts Payable Professionals
• About APPG

LinkedIn Networking: How To

LinkedIn: Are You Even Doing It Right?

Some people use LinkedIn as an active professional network. Others only remember it exists when they need a job. And then there is a third group that barely uses it at all.

There seem to be a few different kinds of LinkedIn users.

One type logs in often, fills out the profile as much as possible, and actually uses LinkedIn to network with other people. They usually have a photo of themselves, fill in their work history, list where they went to school, join groups, and follow newsletters. Many times, this kind of LinkedIn user tends to have over 500 connections.

The second kind of user only thinks about LinkedIn when they are looking for a new job. They may fill in the profile and hopefully add a picture, but since they do not spend much time on the platform, they never seem to build up enough connections. And since they do not have many connections, they do not have much reach on LinkedIn. And since they do not have much reach, they end up not using it.

And I guess there is a third kind of user, one I do not really understand. It is someone who has a profile on LinkedIn but never adds a picture, does not fill in work history, and has zero connections or less than 20 connections. If this is you, I would recommend adding a photo, some work history, and inviting people you actually know in real life, so you have at least 20+ connections before you try open networking.

Think about it. You get a LinkedIn request from someone you do not know, who has no picture, no work history, and nothing else filled out on their profile. Why would you want to connect with that person? What value does that connection bring you? Could this be someone trying to scam you by collecting your information? Who knows?

I go through that same thought process when I screen potential members trying to join the Accounts Payable Professionals Group (APPG) on LinkedIn.

Here Is What I Recommend at a Minimum

1. A photo of yourself
2. At least 20 connections of people you know in real life
3. Your work history

Some time ago, I did a poll asking the Accounts Payable Professionals Group whether they consider it important to have a photo or not. Over 80% responded that it is important to have a photo on a LinkedIn profile.

Open Networking, What Is It?

First, know your connections. Ideally, these are people you know in real life or interact with regularly online. After that, it is a good idea to grow your network intentionally.

Networking with people in shared groups works well, especially in APPG, since we filter for quality members.

You can create a post introducing yourself and invite others to connect. Or comment on someone else's post, introduce yourself, and mention you are open to connecting.

Quick Red Flags on a LinkedIn Profile

• No profile photo
• No work history listed
• Very few connections
• Very little profile information
• A profile that feels incomplete or unclear

Final Thought: LinkedIn Is Not Just a Resume

LinkedIn only works if you use it.

If you treat it like a resume you update once every few years, it will not do much. If you treat it like a place to stay visible and connect with people, it can open doors you did not even know existed.

You do not need to be an influencer. You just need to be present.

Start small. Fix your profile. Add connections. Join conversations.

That is how it builds.

LinkedIn Profile Improvement Checklist

Basic Setup

• Add a clear, recent profile photo
• Build to at least 20 real connections
• Fill in your work history
• Add education if relevant
• Update your location

Make the Profile Stronger

• Write a headline that explains what you do
• Add an About section
• List relevant skills
• Add a background banner

Start Using LinkedIn

• Join relevant groups
• Follow industry voices
• Engage weekly
• Connect with peers and coworkers
• Write a short introduction post

Join the Conversation

If you work in Accounts Payable, join the Accounts Payable Professionals Group (APPG) and start connecting with others in the field.

Robert Ruhno

Founder, Accounts Payable Professionals Group (APPG)

Robert Ruhno leads APPG, a professional community focused on practical insights, networking, and career growth in Accounts Payable.

What the Iran War Could Mean for Accounts Payable Work

From Hybrid Work to a Four-Day Week: What the Iran War Could Mean for the Future of Work

A global energy shock is forcing companies to rethink work again. This time, it may not just change where we work. It may change how much we work.

We’ve Seen This Before

Not long ago, most companies believed remote work could not be done at scale.

Then COVID forced the issue.

Almost overnight, businesses shifted to remote and hybrid models. What started as a temporary fix became a permanent part of how work gets done.

Now we are looking at another forced experiment.

This time, it is not about where we work. It is about how many days we work.

The Iran War and the Energy Shock

The current conflict involving Iran is putting pressure on global energy supply, especially oil moving through the Strait of Hormuz.

When energy becomes scarce or expensive, companies do not debate theory. They act.

The fastest way to reduce energy use is simple:

• Fewer commutes
• Less office usage
• Shorter operating schedules

That is why some countries are already testing four-day workweeks and expanded work-from-home policies.

Not as a benefit.

As a response.

Why This Might Not Go Away

At first, this looks temporary.

But we have seen this pattern before.

Once companies are forced to try something new, they start asking better questions.

• Did productivity actually drop?
• Are people more focused?
• Did costs go down?

If the answers lean positive, the old model starts to look inefficient.

And once that happens, it is hard to go back.

Here’s Where This Gets Real for AP

If you are in Accounts Payable, you already know how this plays out.

The calendar changes. The work does not.

• Invoices still come in
• Vendors still expect to be paid
• Month-end still hits the same way

A four-day workweek does not reduce the workload in AP.

It compresses it.

That means the gap between efficient teams and struggling teams gets wider, fast.

The teams that handle this well will not be working harder. They will be working differently.

• Automated invoice capture
• Exception-based processing
• Clean approval workflows
• Strong vendor verification controls

Less manual work. Fewer touchpoints. More control.

That is what makes a shorter workweek even possible.

The Bigger Shift

This is not really about a four-day workweek.

It is about pressure exposing inefficiency.

COVID forced companies to rethink where work happens.

This energy situation is forcing companies to rethink how much time work actually requires.

And once a company realizes it can get the same output in less time, that changes expectations permanently.

Watch the Ripple Effects

There are smaller signals that start to show up when energy prices rise.

If you have been in AP long enough, you have probably seen this before.

Freight bills start including fuel surcharges. Carriers adjust pricing. Some companies shift from truck shipping to rail to control costs.

Even standard benchmarks like the IRS mileage rate can change, sometimes mid-year, when fuel prices move quickly.

Individually, these changes may not seem significant.

But together, they tell a clear story.

Energy pressure does not stay contained. It flows through invoices, contracts, and operating decisions.

And AP is where all of it shows up.

Final Thought

The four-day workweek is not guaranteed.

But something is shifting.

The organizations that learn how to operate with fewer hours, fewer delays, and fewer manual steps will move faster than everyone else.

And in Accounts Payable, that difference will show up quickly.

Some teams will feel more pressure than ever.

Others will barely notice the change.

The difference will not be effort.

It will be how the work is built.

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Robert Ruhno

Founder, Accounts Payable Professionals Group

Robert Ruhno writes about Accounts Payable operations, automation, controls, vendor risk, and the future of AP work. Through the Accounts Payable Professionals Group, he helps AP professionals understand industry changes and turn them into practical action.

NACHA 2026 Rules - Begin March 20th

What the Nacha ACH Fraud Monitoring Rule Means for Accounts Payable Teams

Fraud is getting smarter. Now the rules are getting stricter.

Nacha, the organization that governs the ACH network in the United States, has strengthened its ACH Fraud Monitoring Rule. While the rule is written for banks and payment originators, it directly affects companies that send ACH payments. That includes Accounts Payable teams.

What Is the ACH Fraud Monitoring Rule?

Companies that originate ACH payments must now:

• Monitor ACH activity for signs of fraud
• Use a defined, risk-based process
• Investigate suspicious transactions
• Maintain documentation of monitoring procedures

Banks are expected to ensure their clients have reasonable controls in place. That means your process may be reviewed more closely than before.

Why This Matters to AP

Most ACH fraud starts with a vendor bank account change.

A fraudster pretends to be a vendor. They request a bank update. The vendor master file is changed. Payment is released. The money disappears.

By the time the real vendor calls, the damage is done.

Are Confirmation Calls Enough?

Many AP departments already make confirmation calls. That is good. But the strength of the process matters.

• Are you calling a trusted number from your vendor file?
• Are you documenting who you spoke with?
• Is the update approved by someone else?
• Is the same person restricted from releasing payment?

A confirmation call only works if it is independent and documented.

What a Strong Process Looks Like

Independent Verification

Call a phone number already on file. Never use contact information provided in the change request.

Separation of Duties

The person who updates vendor banking details should not be the same person who releases payment.

Written Procedures

Have a simple written policy that outlines your exact steps.

Monitoring Reports

Review ACH return codes and unusual activity patterns on a regular basis.

Documentation

Keep records of confirmation calls, approvals, and changes.

10-Point ACH Fraud Readiness Checklist

1. Confirmation calls required for bank changes
2. Calls made using trusted numbers
3. Calls documented
4. Dual approval required
5. Vendor master access restricted
6. ACH returns reviewed monthly
7. Unusual payment activity tracked
8. Written policy in place
9. Staff trained on vendor fraud risks
10. Process ready to explain to bank or auditor

Download the ACH Fraud Readiness Checklist

Final Thought

Fraud prevention is not about distrust. It is about structure.

If your company pays vendors by ACH, now is the time to review your process. Strong controls protect your organization, your vendors, and your reputation.

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Robert Ruhno Executive Director APPG

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IRS Paper 1099 filing deadline

IRS Paper 1099 Deadline Moves to March 2, 2026

Published: February 25, 2026

The IRS paper filing deadline for Form 1096 and certain paper Forms 1099 shifts to Monday, March 2, 2026 because February 28 falls on a Saturday. If you are still preparing paper filings this week, you now have one additional business day.

Important: Form 1099-NEC is not included in this weekend adjustment.

What This Means for AP

• Applies to paper filers only.
• Ensure Form 1096 totals match all paper 1099s included.
• Mail early enough to secure a March 2 postmark.
• Late filing penalties can reach $310 per form (depending on timing and circumstances).

APPG Insight: A one-day shift can still impact mailing workflows, year-end documentation, and close checklists. Confirm your filing method before submission.

Official IRS Sources

• Instructions for Forms 1099 and 1096: irs.gov/instructions/i1099gi
• General instructions for certain information returns (includes due date guidance): irs.gov/forms-pubs/general-instructions-for-certain-information-returns

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Robert Ruhno Executive Director APPG

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Future of AP - student interview

Controls & Risk | Automation Watch

What a Freshman Business Student Asked Me About AI in Accounts Payable

Recently, I had a Zoom call with a freshman business student from UNC Chapel Hill. He is studying business and data science and is working on a project about how AI is changing different industries.

One of the industries he wanted to understand better was accounting, especially Accounts Payable (AP). His questions were thoughtful and honest. They are also the same questions many professionals are quietly asking right now.

Quick note: I am keeping the student anonymous, but I am sharing the ideas because they reflect what many AP teams are seeing in the real world.

Join the APPG LinkedIn Group Visit the APPG Job Board Get APPG Updates

Where Is AI Being Used in Accounts Payable?

• Detecting duplicate payments
• Finding unusual patterns that may signal fraud
• Reviewing large volumes of invoice data
• Automatically responding to vendor emails about payment status

Fraud detection is one of AI’s strongest areas. AI can scan thousands of transactions and spot patterns that humans might miss.

What Are the Biggest Pain Points?

Manufacturing invoices can contain hundreds of line items. Even small mismatches can create delays. Partial payments can also create reconciliation problems and confusion.

Large organizations struggle with complex approval chains. When employees move or leave, approval paths break.

How Much Does AI Improve Productivity?

Early AI implementations often showed gains around 30 to 33 percent.

More recent 2026 data suggests that well-integrated AI systems are seeing productivity improvements closer to 60 percent on average.

If a 10-person team becomes 60 percent more productive, the same workload might be handled by closer to six people instead of ten. That changes how departments are structured.

This does not mean AP disappears. It means routine tasks shrink while oversight, analysis, and internal controls become more important.

What About Job Security?

Entry-level invoice keying roles are the most vulnerable. However, fraud review, exception handling, vendor management, and compliance oversight still require human judgment.

Segregation of duties rules also require multiple people in the process, which supports continued human involvement.

What Happens Over the Next 3 to 5 Years?

Automation will continue expanding into end-to-end workflows. AI will help manage routing, exceptions, and routine communication.

At the same time, fraud tactics will evolve. Strong controls and smart review processes will remain critical.

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Join the Discussion

Are you seeing real productivity gains from AI in your AP department? Share your experience in the APPG community.

Discuss in APPG Schedule a Conversation

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Robert Ruhno Executive Director APPG

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AP Fraud Playbook

 

AP Fraud Playbook: How to Identify and Mitigate Risks in Your Accounts Payable Process

AP fraud often hides in plain sight. If your team struggles to spot invoice fraud red flags or tighten vendor master controls, you’re not alone, and there’s a way forward. This playbook breaks down practical steps to spot risks, strengthen your payment approval workflow, and build fraud prevention into your daily routine.

Reality check: In the 2025 AFP Payments Fraud and Control Survey, 79% of organizations reported attempted or actual payments fraud in 2024, and only 22% recovered 75% or more of the funds lost. (Source: AFP press release)

Let’s get your controls working smarter, not harder.

Identifying AP Fraud Risks

Understanding the risks in accounts payable is crucial to protecting your organization. Recognizing common fraud schemes is the first step toward a stronger defense.

Common Fraud Schemes and Red Flags

Many fraud schemes can target your accounts payable process. Fake invoices, altered payment details, and duplicate payments are a few examples. Unusual vendor requests for changes in payment details or last-minute invoice submissions can signal fraud. Be especially cautious with vendors you’ve never heard of, and verify vendor details using independent sources.

High-signal red flags experienced AP teams watch for:

• Invoice amounts that repeatedly land just under an approval threshold.
• Round-dollar invoices (for example, $5,000 or $10,000) with vague descriptions.
• Vendor address is a P.O. box only, a residential address, or matches an employee address.
• A sudden spike in payments to one vendor without a matching increase in POs, receipts, or volume.
• Bank account or remit-to changes paired with urgency (“pay today” or “we’ll stop service”).
• Sequential invoice numbers with gaps, duplicates, or “too perfect” patterns.
• Multiple vendor records sharing the same bank account, email domain, phone, or tax ID.
• Unusual timing (late night approvals, weekend changes, or rush payments right before month-end).

Business Email Compromise (BEC): The Payment Change Trap

One of the most common real-world fraud scenarios is an email that looks like it came from a vendor, your CFO, or a senior leader asking for a bank change or a rush payment. The message is often calm, plausible, and urgent.

Example (what it can look like):
“Hi AP Team, we updated our banking details. Please send today’s payment to the new account below. We’re trying to avoid a service interruption.”

Controls that stop BEC cold:

• Out-of-band verification for any bank change or high-risk payment (call a known number on file, use a vendor portal, or a documented ticket).
• Dual approval for vendor master changes, separate from invoice approval.
• Payment holds for banking changes until verification is completed and documented.
• Clear escalation path: AP should feel supported when they slow down a “rush” request.

Vendor Onboarding Best Practices

Proper vendor onboarding is essential in preventing fraud. Start by verifying each vendor’s information thoroughly. Use a checklist to ensure every required document is reviewed. Cross-check vendor addresses and banking details with official records, and require dual approval for any changes to vendor information.

Practical vendor onboarding checklist (one-page version):

• Validate legal name, tax ID, and address against authoritative sources (not only what the vendor emails you).
• Verify banking changes out-of-band (call a known phone number on file, not a number from the request).
• Require role-based approvals for new vendor setup and for vendor maintenance (separate from invoice entry).
• Block “free email” domains for banking changes unless reviewed (for example, Gmail or Yahoo) when policy allows.
• Log every change to vendor master data and review a weekly change report.

Invoice Fraud Red Flags

Invoice fraud can go unnoticed if not properly managed. Look out for invoices that lack detail or contain vague descriptions. Comparing invoices to purchase orders and delivery receipts can help verify authenticity. Also, watch for duplicates that can lead to double payments, especially when vendors submit “revised” invoices.

Quick invoice checks that catch real-world fraud:

• Same invoice number, same amount, or same remit-to across multiple submissions.
• Mismatch between vendor name and remit-to entity (or slight name changes that look intentional).
• Service invoices without dates, scope, rate detail, or an internal requester.
• First-time vendor invoices that bypass the normal PO process.
• Invoices that reference a PO you cannot find in your system.

Strengthening AP Controls

Once you know the risks, it’s time to fortify your controls. This section covers key practices to bolster your AP defenses.

Segregation of Duties Importance

Segregation of duties is a cornerstone of strong internal controls. It ensures no single person handles all aspects of a transaction. This division reduces the risk of fraud and errors. For example, the person authorizing payments should not be the person processing them. Regularly review your workflows to confirm duties are appropriately divided, and document any necessary exceptions.

Three-Way Match and Positive Pay

The three-way match compares the invoice, purchase order, and receiving report before payment. It helps prevent paying for goods not received and exposes pricing and quantity mismatches. Positive Pay is a bank service for check payments where your issued-check file is matched against checks presented for payment. Many banks also offer Payee Positive Pay, which helps confirm the payee name. If your organization relies on ACH or wires, ask your bank what verification and fraud-control options they offer for electronic payments.

Vendor Master Controls and Duplicate Detection

Maintaining accurate vendor master data is crucial. It helps prevent duplicate payments and unauthorized changes. Regular audits of vendor information can identify inconsistencies. Use automated checks to detect duplicates and flag unusual edits (like bank changes, address changes, or email changes). A clean vendor master reduces fraud risk and improves AP efficiency.

Leveraging Technology and Training

Technology and training are powerful allies in the fight against fraud. They equip your team with tools and habits that reduce risk every week, not just after something goes wrong.

AI Fraud Detection in AP

Artificial Intelligence (AI) can strengthen fraud detection, but it works best as an added layer on top of strong core controls (segregation of duties, approvals, and three-way match). In practice, AI tools help by finding patterns humans miss at scale.

Where AI and automation usually add value first:

• Duplicate detection beyond invoice number (same amount, same date range, similar descriptions, or same bank account across vendors).
• Anomaly alerts (unusual payment timing, sudden vendor spend spikes, new payees, unusual approver behavior).
• Vendor master monitoring (bank changes, address changes, email changes, and “near-duplicate” vendor records).
• Exception routing (sending high-risk invoices to a higher approval tier or a second reviewer).

Phishing Drills and Culture Building

Phishing scams are a common entry point for fraud. Regular phishing drills can train your team to recognize and avoid these threats. Culture matters just as much: encourage quick escalation, reward caution, and treat “slow down and verify” as good performance.

Continuous Monitoring and KPIs

Continuous monitoring of transactions is essential. Set key performance indicators (KPIs) that reflect both control coverage and control quality. Review them regularly to spot drift before a fraud event forces a reset.

Simple KPI dashboard ideas that AP leaders actually use:

• % of spend and invoices processed with three-way match (where applicable).
• Vendor master change volume per week (and % with dual approval and documented verification).
• Duplicate payment rate (confirmed duplicates per 1,000 invoices).
• Rush payments as a % of total payments (and how often the rush bypassed standard workflow).
• Exception queue aging (how long high-risk items sit before review).

60-Second AP Fraud Self-Assessment

Answer these quickly. If you have two or more “no” answers, your fraud risk is likely higher than you think.

• Do we require out-of-band verification for all vendor bank changes?
• Is vendor master maintenance separated from invoice entry and payment release?
• Can we produce a weekly vendor change report, and does someone review it?
• Do we have strong duplicate detection beyond invoice number only?
• Do “rush” payments still follow a documented workflow with approvals and evidence?

The AP fraud landscape is challenging, but with the right strategies, you can protect your organization from potential losses. Proactive controls, consistent monitoring, and a culture that supports verification can prevent expensive mistakes.

Want a quick AP fraud controls review?

If you want a second set of eyes on your AP workflow (vendor changes, approvals, duplicate detection, and payment controls), book a short call and I’ll help you map the biggest risks and the fastest fixes.

Book a call

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Robert Ruhno Executive Director APPG

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