It’s 2PM. If you’re like me, every day at this time you’ve hit your lull. You start checking your phone every few minutes to make sure time isn’t standing still. You’re tired – coffee won’t help and you’re still hungry from lunch because your new diet has you eating like a rabbit. You’re officially in email jail because your inbox is overflowing and you have at least 3 hours remaining in the workday.
It’s easy to slide into a comfortable work routine and habits like this can be hard to break. So dust yourself off and find more ways to stay relevant. As an AP manager you need to remain familiar with the various developments in your field. The following information won’t cure your hunger pains from all the lettuce you’re eating, but it can help you stay at the forefront of your field.
1) Make use of all available technology in an effort to improve efficiency.
Electronic innovations have helped to increase productivity and improve efficiency by streamlining certain processes. For example, cloud-based workflow automation and SaaS solutions are critical to departmental efficiency and should be considered for any AP department. A good AP manager will ensure that all pertinent technology is readily available and regularly used in order to allow for a more efficient AP workflow. This may sound simple, but the rapidly changing nature of technology demands consistent attention on the part of AP managers in an effort to stay up to date on any developments that could be implemented.
2) Embrace the nature of Accounts Payable and the roles it can play terms of business strategy.
At one point, AP was typically considered to be a strictly back-office function. General consensus these days, however, tends to consider the department in a more centrally strategic role. Good AP managers realize that accounts payable plays a role in ensuring that a company achieves its financial objectives through automated processes that can reduce the time spent on manual efforts of low-value.
3) Recognize the fact that improving cash flow is paramount to business competitiveness.
Cash liquidity is beginning to become an even bigger concern for many businesses these days. This allows AP managers to take on an even greater role in improving the overall health of cash flow while also contributing to the company’s stability. This can come from automation technology that allows AP departments to control payables more effectively while also providing real-time visibility to liabilities moving through the organization. Good AP managers will seek out these technologies for their own departments in an effort to improve AP workflow.
4) Recognize the relationship between cycle times and business costs.
AP workflow allows for an array of techniques that can help reduce costs, and good managers will seek out those that apply to their departments. Things like early payment discounts can be of great help in reducing business costs. Recently developed automated tools are key to this as they help AP managers realize new discount capture opportunities. The best automation solutions integrate seamlessly with buyer-initiated payment card providers and allow for AP departments to capture cash rebates on payments.
5) Seek out any technologies that can help to cut down on costly errors.
Automated processes allow for invoices to be received electronically or converted to digital as opposed to paper. Digital invoices are easier to look up, maintain, and audit than their physical counterparts. They also help cut down on errors and their related costs. Implementing an electronic invoice solution can also increase visibility into the AP workflow. Good AP managers should recognize the potential value in shifting to digital.
Accounts payable management can be complicated. But with techniques likes these you can help not only your department, but your company as a whole. As the last line of defense before funds leave your company, AP needs to have a full view of their entire process. These techniques may ensure maximum efficiency and reduce business cost. Get out of the “same old, same old” and leverage the good habits that other highly successful AP managers are using.