The Purchase-to-Pay (P2P) process, also known as Procure-to-Pay, is an integral part of an organisation’s procurement and finance cycle. It encompasses all activities involved in acquiring goods and services from external suppliers and paying for them. This end-to-end process ensures efficient procurement, improved supplier relationships, and streamlined financial operations.
In this blog, we’ll dive into the P2P process, explore its key stages, and define the roles and responsibilities that keep it functioning smoothly.
Key Stages of the Purchase-to-Pay Process
The P2P process is broken into several critical steps:
Roles and Responsibilities in the P2P Process
Each stage of the P2P process involves different roles with distinct responsibilities:
Why is P2P Important?
A well-structured P2P process offers several key benefits:
If you’d like to learn more about the partners the APA collaborates with, visit this link for detailed information.
Conclusion
The Purchase-to-Pay process is more than just buying goods and paying invoices—it’s a structured approach that ensures efficiency, transparency, and financial control. With distinct roles and responsibilities at each stage, the P2P process helps organizations maintain effective operations, manage costs, and build valuable supplier relationships.
Understanding this structure is essential for any organisation looking to optimise its procurement and payment processes while driving value across the entire supply chain.
In the world of finance, the Accounts Payable (AP) and Procure-to-Pay (P2P) functions have often been seen as back-office operations, vital but undervalued. However, this perception is changing—and it must continue to evolve. Raising the profile of the AP/P2P profession is not only necessary for fostering a deeper understanding of its significance within organisations but also for ensuring that professionals in these roles are recognised for their strategic contributions.
Here, we’ll explore the importance of the AP/P2P function, the reasons for raising its profile, practical steps to elevate its visibility, and key metrics to measure the success of these efforts.
The Importance of the AP/P2P Function
The AP/P2P function is far more than a transactional unit. At its core, it ensures that suppliers are paid on time, maintains strong supplier relationships, and helps manage cash flow, all of which are essential to the smooth functioning of any business. Yet, beyond these tasks, AP/P2P has evolved into a critical component of an organisation’s financial strategy, with a significant influence on liquidity, risk management, and cost control.
In addition to processing payments, AP/P2P teams now play a crucial role in:
Despite this, AP/P2P is often overlooked, viewed as an administrative necessity rather than a strategic partner. This undervaluation not only hinders professional growth within the field but also limits its potential to contribute at the highest levels of business decision-making.
So Why Raise the Profile of AP/P2P?
AP/P2P teams hold valuable data and insights that can inform broader financial strategies, such as optimising working capital, identifying cost-saving opportunities, and strengthening supplier negotiations. Raising the profile of AP/P2P means unlocking this data to drive company-wide improvements.
Elevating the status of AP/P2P creates pathways for growth, attracting talent who want to see a clear future for themselves in the profession. With more visibility and recognition, the profession can build a strong network of skilled professionals who are equipped to navigate an increasingly complex business environment.
When AP/P2P is viewed as a strategic function, there is greater support for investing in the technologies and process improvements that allow for better scalability, operational efficiency, and innovation. This ensures that the organisation stays competitive in the fast-paced digital age.
A higher-profile AP/P2P function can lead to a stronger focus on compliance, controls, and risk management. This in turn reduces exposure to fraud, errors, and regulatory breaches, safeguarding the organisation’s reputation and bottom line.
How to Raise the Profile of AP/P2P
One of the most effective ways to raise the profile of AP/P2P is by highlighting the tangible successes that these teams achieve. This could involve sharing case studies where AP/P2P optimised cash flow, negotiated better payment terms, or spearheaded a digital transformation project. Publishing these internally (and externally, when appropriate) helps others in the organisation see the value being added by the function.
By adopting cutting-edge technologies such as automation, artificial intelligence (AI), and data analytics, AP/P2P teams can demonstrate their ability to lead in digital transformation. This not only elevates the function’s importance but also positions it as forward-thinking and essential for keeping up with industry trends.
Internally, it’s crucial to provide education about the strategic role of AP/P2P. Holding workshops or presentations that explain the broader impact of this function can help change perceptions. Additionally, cross-departmental collaborations can enhance understanding of how AP/P2P influences overall business outcomes.
AP/P2P leaders should actively engage with senior management and the C-suite to communicate the impact their teams are making. Providing regular updates, presenting performance metrics, and participating in strategic discussions will foster greater visibility and understanding of AP/P2P’s contributions.
Membership in professional bodies, attending industry conferences, and earning relevant certifications can further raise the profile of both the team and individual professionals within the field. In addition, organisations should encourage AP/P2P professionals to participate in industry discussions and publish thought leadership content.
Metrics to Measure Success
Raising the profile of AP/P2P isn’t a one-time effort, but an ongoing process that requires tracking and refining over time. The following key performance indicators (KPIs) can help measure the success of these efforts:
Measure the number of meetings or consultations between the AP/P2P team and other departments, especially the finance and procurement teams. More involvement in strategic discussions is a strong indicator that the profile of the team is rising.
Periodically survey internal stakeholders about their perceptions of the AP/P2P team’s effectiveness and contributions. A steady increase in positive feedback reflects growing recognition of the function’s importance.
Track the frequency of AP/P2P staff being recognised for their work or being promoted within the company. A higher number of promotions, accolades, or professional advancements can signal an increased valuation of the function.
Metrics such as reduced invoice processing time, lower error rates, and faster supplier payments can be used to demonstrate the functional improvements being made. The more efficient and error-free the AP/P2P process is, the stronger its reputation will be.
Another indicator of success is the extent to which new technologies (e.g., automation tools, data analytics platforms) are implemented within the AP/P2P function. Greater investment in these tools suggests recognition of the function’s importance and potential.
Conclusion
Raising the profile of the AP/P2P profession is not just a matter of gaining recognition for the work being done—it’s about ensuring that organisations are fully leveraging the strategic insights and efficiencies that AP/P2P teams can provide. By advocating for greater visibility, promoting success stories, and continuously measuring the impact of these efforts, businesses can empower their AP/P2P professionals to drive real value and innovation across the organisation.
It’s time to move beyond seeing AP/P2P as a mere transactional function and recognise it for the strategic powerhouse it truly is.
If you’d like to learn more about the partners the APA collaborates with, visit this link for detailed information.
Fraud is an ever-present risk in transactional finance
roles, especially within Accounts Payable (AP), where the sheer volume of
transactions and the involvement of external vendors can create
vulnerabilities. While technological advancements have provided tools to
mitigate fraud, building a strong anti-fraud culture is equally critical. This
culture starts with awareness and extends through behaviour, processes, and
values embraced by the entire organisation.
Here’s some suggestions on how to create an anti-fraud
culture that safeguards your AP function:
1. Leadership Commitment and Tone at the Top
The foundation of an anti-fraud culture begins with
leadership. When senior leaders demonstrate a zero-tolerance approach to fraud,
employees are more likely to follow suit. It’s essential that management
consistently communicates the importance of fraud prevention through training,
policies, and setting ethical standards. This also means actively participating
in initiatives that promote transparency and integrity.
Key actions include:
2. Comprehensive Employee Training
Employees in AP and transactional finance roles are the
first line of defence against fraud. A well-informed team is better equipped to
spot irregularities and suspicious activities. Comprehensive training programs
that are regularly updated can help foster vigilance.
Training should cover:
Equally important is embedding an understanding of the
repercussions of fraud, not just for the business but for the individual,
including legal consequences and career impacts.
3. Segregation of Duties
One of the most effective internal controls in preventing
fraud is the segregation of duties. No single person should have end-to-end
control over any financial process, such as vendor onboarding, invoice
approval, and payment processing. Splitting these responsibilities between
multiple employees reduces the likelihood of fraud being carried out by an
individual or going unnoticed.
In practice:
4. Automated Fraud Detection Tools
Technology plays a crucial role in identifying potential
fraudulent activity early. AP automation tools equipped with artificial
intelligence (AI) and machine learning can monitor transactions in real-time,
flagging anomalies based on pre-set patterns. For example, they can detect
duplicate invoices, payments to unregistered vendors, or invoices that deviate
from usual spending trends.
These tools should be paired with:
5. Vendor Management and Onboarding Controls
AP fraud often occurs through external vendors, making it
crucial to establish strong vendor onboarding controls. A thorough onboarding
process that includes validating vendor credentials and conducting regular
vendor audits is essential.
Best practices include:
6. Whistleblower and Reporting Mechanisms
An effective anti-fraud culture encourages employees to
report suspicious behaviour. Implementing a whistleblower program that ensures
confidentiality and protection for those reporting potential fraud can greatly
enhance internal fraud detection.
Encourage open communication by:
7. Regular Audits and Continuous Monitoring
Audits play a crucial role in identifying gaps in your
anti-fraud processes. Regular internal audits of AP systems, processes, and
transactions ensure that controls are functioning effectively and provide an
opportunity to spot any unusual patterns or weaknesses.
Continuous monitoring efforts include:
8. Cultivating an Ethical Work Environment
Lastly, fostering an ethical work environment where
integrity is prioritised over shortcuts helps prevent fraud from becoming
ingrained in company culture. When employees understand the value of honesty
and accountability, they are less likely to engage in fraudulent behaviour and
more likely to report it when they see it.
This can be achieved by:
Conclusion
Creating an anti-fraud culture in AP and transactional
finance roles is not a one-time initiative but an ongoing process. It requires
a commitment from leadership, regular training, effective internal controls,
and leveraging technology to build a proactive defence against fraud. When
every team member is aware, vigilant, and supported by strong processes and
tools, the likelihood of fraud can be dramatically reduced, safeguarding both
the department and the wider organisation.
By nurturing this culture, AP teams can move beyond just
preventing fraud and position themselves as trusted, strategic assets to the
business.
In the fast-paced world of Accounts Payable (AP) and
Procure-to-Pay (P2P), leadership isn’t just about managing tasks and processes.
It’s about leading people, fostering relationships, and cultivating an
environment where your team can thrive. Emotional intelligence is at the heart
of this endeavor.
Here are the top 10 tips to enhance your emotional
intelligence as a leader in the AP/P2P profession:
1. Self-Awareness: Know Yourself First
Before you can lead others, you need to understand your own
emotions, strengths, weaknesses, and triggers. Regular self-reflection can help
you stay grounded and avoid reacting impulsively in stressful situations, which
are common in the transactional finance environment.
2. Empathy: Understand Your Team’s Perspective
Empathy is crucial for building strong relationships. Take
time to listen to your team members, understand their concerns, and see things
from their perspective. In AP/P2P, where deadlines are tight and errors can be
costly, empathising with the pressures your team faces will help you lead more
effectively.
3. Effective Communication: Be Clear and Open
Clear and open communication is the backbone of any
successful team. As a leader, ensure that you communicate expectations,
feedback, and changes transparently. In AP/P2P, where processes are complex,
clear communication can prevent misunderstandings and errors. Always strive to
“eliminate ambiguity”.
4. Adaptability: Embrace Change with Positivity
The AP/P2P profession is constantly evolving with new
technologies and regulations. A leader with high emotional intelligence can
adapt to change with a positive mindset and help their team do the same.
Encourage flexibility and be a role model for adaptability.
5. Conflict Resolution: Approach Disagreements
Constructively
Conflicts are inevitable in any workplace, but how you
handle them matters. Approach conflicts calmly and constructively, focusing on
finding solutions rather than assigning blame. In AP/P2P, where collaboration
is key, effective conflict resolution can keep your team cohesive and focused.
6. Stress Management: Maintain Your Composure
The high-pressure nature of AP/P2P can lead to stress.
Leaders with strong Emotional Intelligence know how to manage their stress and
remain composed. Practice stress-relief techniques like mindfulness or deep
breathing, and encourage your team to do the same.
7. Motivation: Inspire and Drive Your Team
A motivated team is a productive team. Use your emotional
intelligence to tap into what drives each team member. Recognise achievements,
provide meaningful feedback, and create a sense of purpose in their work within
the AP/P2P process.
8. Relationship Management: Build Strong Connections
Strong professional relationships are built on trust and
respect. Adopt a collaborative environment where team members feel valued and
supported. In AP/P2P, where teamwork is essential, strong relationships can
lead to better collaboration and fewer errors.
9. Decision-Making: Balance Emotions with Logic
Emotionally intelligent leaders can make decisions that
balance emotional and logical factors. In the AP/P2P profession, where
decisions often involve financial implications, it’s important to remain
objective while considering the human impact of your decisions.
10. Continuous Learning: Invest in Your Emotional Growth
Emotional intelligence isn’t static; it can be developed
over time. Commit to continuous learning by seeking feedback, attending
workshops, and reflecting on your experiences. In the ever-evolving AP/P2P
field, ongoing development in Emotional Intelligence will keep you at the
forefront of effective leadership.
Conclusion
Incorporating emotional intelligence into your leadership style isn’t just a nice-to-have; it’s a necessity in the AP/P2P profession. By focusing on these 10 tips, you can create a more supportive, productive, and resilient team. Leadership isn’t just about managing processes—it’s about leading people, and emotional intelligence is the key to doing so effectively.
In the Accounts Payable (AP) and Procure-to-Pay (P2P) profession, statement reconciliations are often seen as a routine task—but their impact is far more profound. They form the backbone of financial accuracy, compliance, and can elevate AP from a transactional to a strategic department. Let’s explore why statement reconciliations are critical and how they can transform AP / P2P operations into a strategic asset.
The Importance of Statement Reconciliations
Statement reconciliations involve comparing the supplier’s statement of account with the records in the AP system. Any discrepancies, like missed invoices or unaccounted payments, are identified and resolved. While this process might seem simple, it carries significant value:
Statement Reconciliations as a Best Practice in AP
Incorporating statement reconciliations as part of your AP best practices ensures not only accuracy but also operational efficiency:
Elevating AP to a Strategic Role Through Reconciliations
Traditionally, AP departments have been viewed as back-office, transactional functions. However, incorporating reconciliations as part of a broader P2P strategy allows AP teams to take on a more strategic role. Here’s how:
If you’d like to learn more about the partners the APA collaborates with, visit this link for detailed information.
Conclusion
Statement reconciliations might seem like a fundamental task, but they are crucial to elevating the AP department’s role from transactional to strategic. They ensure financial accuracy, compliance, and foster stronger supplier relationships, while also providing AP teams with data-driven insights to guide the broader P2P strategy.
For AP professionals, embracing statement reconciliations as part of best practices not only improves operational efficiency but also positions the department as a strategic enabler within the business. It’s time to start thinking about reconciliations not just as a checklist task but as a gateway to smarter, more strategic financial management.
In the ever-evolving landscape of Accounts Payable (AP) and Procure-to-Pay (P2P), technological advancements have become the linchpin for efficiency, accuracy, and scalability. As organisations increasingly adopt automation, AI, and other digital tools, the role of leadership in guiding teams through these changes is more critical than ever. Successfully leading teams through technological change involves more than just implementing new systems; it requires a strategic approach that fosters adaptability, resilience, and continuous learning.
Understanding the Impact of Technological Change
Before diving into strategies for leading teams, it’s essential to grasp the impact of technological change on AP/P2P processes. Automation tools streamline tasks such as invoice processing, payment approvals, and vendor management, reducing manual errors and speeding up workflows. AI-driven analytics provide deeper insights into spending patterns, enabling more informed decision-making. However, these changes can also lead to uncertainty among team members, who may fear that automation could replace their roles or find themselves overwhelmed by the learning curve associated with new technologies.
If you’d like to learn more about the partners the APA collaborates with, visit this link for detailed information.
Building a Culture of Adaptability
One of the first steps in leading a team through technological change is cultivating a culture of adaptability. Encourage an environment where continuous improvement and innovation are valued. Leaders should emphasise that technology is a tool to enhance, not replace, human capabilities. By fostering a mindset that sees change as an opportunity for growth, teams are more likely to embrace new technologies with enthusiasm rather than resistance.
Clear Communication and Vision
Effective communication is paramount when navigating technological change. Leaders must clearly articulate the vision behind adopting new technologies—explaining not just the “what” but also the “why.” Sharing the long-term benefits, such as increased efficiency, better data accuracy, and enhanced job satisfaction through the reduction of tedious tasks, can help alleviate concerns and align the team with the organization’s goals.
Regular updates and transparency about the implementation process also help in managing expectations. Leaders should create forums for open dialogue, where team members can voice concerns, ask questions, and provide feedback. This collaborative approach not only eases the transition but also empowers employees by involving them in the change process.
Providing Training and Support
Technological change often requires new skills, and it’s the leader’s responsibility to ensure that the team is well-equipped to handle the transition. Investing in comprehensive training programs tailored to different learning styles can significantly reduce the stress associated with adopting new tools. Offering hands-on workshops, online courses, and one-on-one coaching sessions can cater to varied skill levels within the team.
In addition to training, ongoing support is crucial. Leaders should establish a support system where team members can easily access help when needed, whether through internal experts, a dedicated helpdesk, or external consultants. This not only helps in the immediate transition but also builds long-term confidence in using new technologies.
Recognising and Celebrating Successes
Acknowledging the efforts and successes of the team during the transition can go a long way in maintaining morale and motivation. Celebrate milestones, both big and small, to reinforce the positive aspects of the change. Recognising individual contributions also shows that the leadership values the hard work and adaptability of the team, which in turn fosters a stronger sense of commitment and teamwork.
Continuous Improvement and Feedback Loops
Technological change is not a one-time event but an ongoing process. Leaders should establish continuous improvement and feedback loops to ensure that the technology is meeting its intended goals and that the team is adapting well. Regularly soliciting feedback from team members can provide valuable insights into what’s working and what needs adjustment. This iterative process helps in fine-tuning both the technology and the way it’s integrated into the workflow, ensuring sustained success over time.
Conclusion
Leading teams through technological change in AP and P2P is a complex but rewarding endeavor. By building a culture of adaptability, communicating effectively, providing robust training and support, and recognizing successes, leaders can guide their teams through the transition with confidence and clarity. As technology continues to evolve, so too must the leadership strategies that support it, ensuring that organizations not only keep pace with change but thrive in it.
Do you ever feel like your Accounts Payable (AP) department operates on an island, disconnected from the rest of the procurement process?
You’re not alone.
Silos between AP and Procure-to-Pay (P2P) are a common roadblock in many organisations. This can lead to inefficiencies, delays, and frustration on both sides.
But what if there was a better way? By fostering collaboration and breaking down those silos, AP and P2P can work together seamlessly to create a more efficient and streamlined process.
In this article, we’ll explore some helpful strategies to achieve this synergy:
Shared Goals, Shared Vision: Building the Bridge Between AP and P2P
Understanding the Big Picture:
While AP and P2P have distinct roles within the procurement process, their ultimate goals are intertwined. Both departments contribute to the smooth flow of goods, services, and payments, ensuring the organisation gets what it needs to operate effectively.
Here’s a breakdown of their shared objectives:
Bridging the Gap:
Once both departments understand these shared goals, it’s time to break down the walls. Here are some ways to foster a shared vision:
Joint Training Sessions: Organise training sessions where AP and P2P teams learn about each other’s functions. Understanding each other’s challenges and processes fosters empathy and collaboration.
Shared Performance Metrics: Track key performance indicators (KPIs) that reflect the shared goals, such as cycle times, early payment discounts captured, and error rates. This incentivises both teams to work together towards improvement.
Cross-Departmental Collaboration Tools: Utilize collaborative platforms or dashboards that provide both departments with real-time visibility into the procurement process. This fosters transparency and streamlines communication.
Benefits of a Shared Vision:
By establishing a shared vision and fostering collaboration, AP and P2P can achieve significant benefits:
1. Improved Efficiency: Streamlined workflows and better communication lead to faster processing times and reduced errors.
2. Cost Savings: Negotiating better terms with vendors and avoiding delays in payments can lead to significant cost savings.
3. Enhanced Risk Management: Stronger internal controls achieved through collaboration can minimize the risk of fraud and errors.
4. Improved Team Morale: When teams work together towards shared goals, it fosters a more positive and collaborative work environment.
By taking the time to build a shared vision and understanding, AP and P2P can transform from isolated departments into a well-oiled machine, driving greater efficiency and success for the entire organisation.
Communication is Key: Unlocking Seamless Collaboration Between AP and P2P
Open communication is the lifeblood of any successful collaboration. When AP and P2P departments break down communication barriers, they unlock a world of efficiency and improved outcomes.
Here’s how to establish clear communication channels and protocols for a seamless workflow:
Building Bridges of Communication:
1. Regular Check-Ins: Foster a culture of open communication by scheduling regular meetings between AP and P2P teams. These meetings can be weekly, bi-weekly, or monthly, depending on your needs. Discuss upcoming projects, identify potential roadblocks, and brainstorm solutions together.
2. Dedicated Communication Channels: Avoid relying on a sporadic flow of emails. Establish dedicated communication channels for quick and easy exchange of information. Explore options like instant messaging platforms, shared team folders, or even a ticketing system for specific issues.
3. Liaison Power: Consider appointing dedicated liaisons from each department. These individuals would act as communication champions, ensuring smooth information flow and addressing any concerns from their respective teams.
Tools for Effective Communication:
Technology can be a powerful ally in fostering communication.
Here are some tools to consider:
Transparency is Your Friend: Shining a Light on Shared Data
Transparency is key to building trust and ensuring both AP and P2P departments are operating at peak efficiency. This means providing clear and easy access to all relevant information for both teams. Here’s how to break down data silos and embrace transparency:
Breaking Down the Data Walls:
Many organisations struggle with data silos, where information is stored in separate systems for AP and P2P. This leads to duplicate data entry, inconsistencies, and difficulty accessing critical information. Let’s break down these walls and embrace transparency:
Centralised Systems: Explore implementing a centralized system for purchase orders, invoices, and supplier data. This can be a dedicated Enterprise Resource Planning (ERP) system or a cloud-based solution specifically designed for procurement. A centralised system ensures everyone is working from the same set of data, minimizing errors and streamlining the workflow.
Real-Time Visibility: Look for solutions that offer real-time visibility into the procurement process. This allows both AP and P2P to track the status of orders, invoices, and payments in real-time, facilitating proactive communication and problem-solving.
Standardised Data Entry: Establish standardized data entry protocols for purchase orders, invoices, and supplier information. This ensures consistency across the system and minimizes the risk of errors due to data variations.
Benefits of Transparency: By embracing transparency, AP and P2P departments can reap several benefits:
Reduced Errors: Working from a single source of truth eliminates discrepancies and data entry errors, leading to more accurate and efficient processes.
Improved Collaboration: Transparency fosters a culture of collaboration. Both teams have a clear understanding of the bigger picture and can work together more effectively to achieve shared goals.
Enhanced Decision-Making: Access to accurate and complete data empowers both departments to make informed decisions that positively impact the procurement process.
Increased Accountability: Transparency holds everyone accountable. Knowing that data is readily available encourages accuracy and promotes a culture of ownership within both departments.
Building a Foundation of Trust:
Transparency is more than just access to data; it’s about building trust. By openly sharing information and collaborating effectively, AP and P2P departments can create a foundation of trust that fosters a more positive and productive work environment.
Embrace Automation: Freeing Up Time for Strategic Collaboration
In today’s digital age, automation is a game-changer for breaking down silos and boosting collaboration between AP and P2P departments. By automating repetitive tasks, both teams can free up valuable time and resources to focus on more strategic initiatives. Here’s how to leverage automation for a smoother workflow:
Automating the Mundane:
Many tasks within the procurement process are manual and time-consuming.
These include:
Focus on What Matters:
By automating these tasks, both AP and P2P are freed from the burden of manual work.
This allows them to focus on more strategic activities such as:
Collaboration, Amplified:
Automation doesn’t replace collaboration, it amplifies it.
By freeing up time from repetitive tasks, both teams can dedicate more resources to working together on strategic initiatives. This fosters a more collaborative environment where both AP and P2P can contribute their expertise to achieve greater efficiency and cost savings for the organisation.
The Future of Collaboration:
Automation is not a one-time fix.
As technology evolves, explore integrating artificial intelligence (AI) and machine learning (ML) into your systems. These tools can further streamline processes, identify anomalies, and provide predictive insights, allowing both AP and P2P to work even more collaboratively and strategically.
By embracing automation and focusing on strategic collaboration, AP and P2P departments can transform their roles from back-office functions to strategic partners driving organizational success.
Celebrate Successes: Highlighting the Power of Teamwork
Collaboration thrives on recognition. When AP and P2P departments work together to achieve successful outcomes, celebrating those wins is crucial. Here’s why recognizing teamwork matters:
Building Morale and Motivation: Taking the time to acknowledge collaborative achievements motivates both teams. It shows them that their hard work and cooperation pay off, fostering a sense of accomplishment and encouraging them to continue working together in the future.
Reinforcing the Value of Collaboration: By celebrating collaborative wins, you send a clear message that teamwork is valued. This reinforces a positive culture where collaboration is seen as the key to success, not just within the procurement process, but potentially across the entire organization.
Ideas for Celebrating Success:
There are many ways to celebrate successful teamwork between AP and P2P:
Public Recognition: Acknowledge the successful collaboration in a company-wide email or newsletter, highlighting the specific teams and individuals involved.
Team Lunch or Outing: Organize a celebratory lunch or team outing to acknowledge the achievement in a more informal setting.
Performance Reviews: Highlight the successful collaboration in individual performance reviews, demonstrating the value of teamwork to career advancement.
Peer-to-Peer Recognition: Implement a program where team members can recognize each other’s contributions to the successful collaboration.
A Celebration of Shared Success:
Celebrating collaborative wins is not about individual accolades; it’s about acknowledging the power of working together.
By recognizing teamwork, you motivate both AP and P2P to continue collaborating towards achieving even greater successes in the future.
This, in turn, strengthens the overall efficiency and effectiveness of the procurement process, benefiting the entire organization.
Let’s Break Down Those Silos!
By implementing these strategies, AP and P2P departments can move beyond isolated operations and build a truly collaborative partnership. This will not only lead to greater efficiency and cost savings, but also create a more positive and productive work environment for everyone involved.
Taking the Next Step
Breaking down silos and fostering collaboration between AP and P2P is an ongoing process.
However, by prioritizing communication, transparency, and teamwork, organizations can create a more streamlined and efficient procurement process that delivers significant benefits for the entire business.
We hope this article has provided valuable insights on how AP and P2P departments can work together seamlessly.
Accounts Payable has always been (and still is!) considered a back office function of a company, when in fact its key to the company operating at all. What would happen if you didn’t pay your bills, you get a friendly reminder and then some not so friendly reminders, perhaps a bailiff visit or you could end up in court. And on top of that you lose goods/services and more importantly your reputation.
So why is it back office?
Lots of people consider this areas is not exciting, not stimulating enough, won’t keep you interested and is so boring you yawn at the thought, because well, its just an invoice. Well you couldn’t be more wrong, working in AP can be whatever you want it to be, you could be passing through getting a bit of experience, or you could stay and reach a manager level where you can have more of a say and even bring in your own innovations.
For me, I literally fell into an AP role, I wasn’t looking for it, wasn’t sure I wanted it, but felt I was obliged to apply for it and despite all my doubts, I’ve never looked back.
Here is my story…..
After being a PA for 8 years and managing a Director, there was no where else to go and since the PA to the Chief Executive wasn’t going anywhere, I asked for and was offered the opportunity to undertake some studying sponsored by my employer with the aim to see where else I could work within the organisation.
I did a Certificate in Management Studies with the Open University, I hadn’t studies with books in over 16 years, so it was very daunting. A CMS seemed to offer a range of topics and I was hoping it would bring out what my strengths were. I covered organisations and people along with marketing and finance. After 12 months of submitting assignments, attending tutorials at the weekends and exams, it was all over and I passed. My highest scores turned out to be for Finance and along with Marketing it was my favourite topic so I started looking for opportunities that I could use my skills on.
I was offered a secondment to move to be a Finance Officer for Facilities Management to oversee budgets for my Manager, facilities overseeing all buildings and offices for the organisation, including raising orders and paying invoices.
I made such a success in the role that I was offered the opportunity to take on more budgets for Housing Management and Directorate Management Team. From a few budgets I was now responsible for 3 key areas overseeing £5m worth of budgets and hundreds of orders and invoices.
As a next step I undertook the Diploma of Management Studies level with Greenwich School of Management and at the end of successfully completing this qualification, a Director encouraged me to apply for a newly created role in Finance as AP Manager, a newly created role in Finance to manage AP on behalf of the council.
In 2003 I took on the new role of AP Manager where No PO No Pay was being implemented across the organisation, along with centralising the receipt of AP invoices to a PO box address with an external contractor. The aim was to withdraw manual entry of invoices across business areas and mandating purchase orders for suppliers.
Early days progressing a pilot with 8 business areas was definitely challenging, it was a new venture for the contractor as well as the organisation, so a steep learning curve for everyone. I had to balance the relationship with business areas and supporting the contractor to manage the work in an effective manner. Great negotiation skills were definitely a benefit!
Keeping suppliers updated on progress was key to the success as well, if your invoice keeps getting rejected you do eventually get the message that it won’t get paid without that number.
It took around 12 months to move all the business areas to the new arrangement where manual entry was withdrawn; this resulted in 120,000+ invoices being managed centrally. There were of course areas of the business, which couldn’t be managed in this manner so this was taken into consideration too.
Reviewing invoice payment performance proved that only 55% of invoices were being paid on time, where the target was 95%. So, time for more exploring on why performance was low and what I found was PO’s were not being raised at the point of order (as the invoice date preceded the PO date), business areas were receiving their invoices directly (as they wanted to keep a copy), then raising a PO and posting the invoice to the PO Box address. Now what a way to avoid following procedure!
It took persuasion and negotiation to get business areas and suppliers to see the benefit of the new process, any new arrangement takes time, but with No PO No Pay being so innovative at the time, it was a challenge I was proud to succeed on, with payment performance moving up to 94% when the system bedded in.
Moving away from manual entry and paper invoices with No PO No Pay was just the beginning when I was asked to seek a contractor to support end to end electronic invoicing. Writing a specification (now that’s new!) was the first step of the procurement process to another very innovative arrangement to appoint a partner who had the technology. All of this whilst being promoted to Shared Services Manager now responsible for AP, AR and Cash Manager and 23 staff!
Twenty months later and 80% of our suppliers had been onboarded to a unique stand alone Procure to Pay supplier portal, no more paper or scanned invoices – we went paperless. And as an organisation we were first too, even some 20 years later I still see organisations just about to implement No PO No Pay!
What an achievement to be recognised by the Adam Smith Awards with Treasury Today to be Highly Commended, now there’s an achievement that I will always remember.
Added extras when moving to an electronic process allowed other improvements to be implemented as well.
All innovations that helps make the process quicker and in turn then saves the organisation money and create a great relationship with suppliers, who were now clambering to work with us.
My next role was the pivotal in taking the biggest step of my career.
The organisation decided to work in partnership with 5 others to partner and create a single platform where all 6 would operate for HR, Procurement and Finance. I was asked to lead for AP in my organisation (on top of my day to day role at first), which was a huge opportunity and I knew it would need a lot of extra time, but I couldn’t miss out. And I didn’t, so much so that I was soon putting myself forward to manage all of the 6 stakeholders in the partnership and moved to the project full time.
I worked non stop to gather everyone’s requirements, I influenced others to the benefits of the way my organisation worked to ensure I didn’t allow our process to fall back and also took on some potential new processes that would future the system. It took around 15 months but I was relieved when at go live my organisation hadn’t fallen back. So business as usual was the order of the day and it was finally time to move on.
After 24 years and 9 months, I left my organisation to go it alone, but that’s where another story begins for me and I’ve never looked back.
In summary you have to use a lot of skills to be able to manage such a key area of any organisation; you need to be able to analyse data, see what it tells you, what you think you can change on your own or where you need others to help.
Bigger changes may require you to go to the marketplace to see what it has to offer, keep up to date with what the market officer’s, not everything would be suitable for your requirements, but some will.
Use your influence and persuade others even at the most senior level to be able to progress a change, make sure you have all the data you need to prove your concept and you then need to celebrate your successes when they happen (or go back and try again!).
All in all AP offers such exciting opportunities and I hope you can see this too!
Giuliana Quadernucci – Director – Account on Time Ltd
With AP Appreciation Week finished for another year, we are taking the time to reflect on what was a successful and thought-provoking five days.
Last Tuesday, we were joined by over 100 Accounts Payable and P2P professionals in Oxford for one of our biggest events of the year, the AP & P2P Forum. Over the course of the day, we were led by special guest panels in identifying the barriers we face within the community, how technology can be used to tackle those obstacles, and what we can expect for the future.
As the scene was set for the first panel of the day, the audience quickly identified an often fraught relationship between Accounts Payable departments and P2P as a reoccurring barrier. Steered by the session host Philip Spence, each panellist was able to describe how they have been able to work alongside their procurement teams and finance departments, developing a working relationship and ensuring communication. ‘Sometimes it is about winning hearts and minds to ensure that relationships can thrive’.
For the second panel of the day, Max Kent of PSL led the debate on ‘The Ostrich Effect’, avoiding change and technology to the detriment of a business. Many attendees revealed that resistance to the ‘new’ usually stemmed from fear of job security, with anxiety that automated technology reduced workloads and the necessity for staff. With a refreshing take on a common problem, delegates revealed how they had successfully overcome this. By communicating the benefits of new systems and highlighting how reduced manual work could allow for more time analyising and improving processes, they were able to effectively implement new systems with the support of their staff. Echoing similar sentiments to the first panel, it highlighted how communication was once again essential, whether between teams or internally.
Throwing it back to earlier days in his career, automation expert Jethro Elvin of Basware shared an interesting example of how fostering positive relationships was paramount. Explaining his time spent visiting suppliers, Jethro recalled working alongside the Mersey River with factory workers, filling Jammie Dodgers with hungry wasps swarming around. Being able to understand the processes of these workers, and the problems they faced, helped Jethro to develop a stronger working relationship with that supplier. Almost 20 years later, Jethro remains a strong advocate for putting yourself in another’s shoes.
Our special guest speaker spoke of his experience becoming a World Champion and Olympic athlete twice-over, providing attendees with the drive to conquer their dreams. . To change our perception of success into a reality, we must consider all that we need to achieve and the steps required to get there. The inspiring session questioned, ‘How can we instigate our own success, and how can we facilitate our own cycle of change?’
So, what can we take home from the AP Forum?
As AP teams across the country celebrated each other and their profession during AP Appreciation Week, it is clearer than ever that the drive to change and elevate our profession is there. But how can we facilitate this change ourselves?
The AP Forum provided some essential take-home messages, that we can champion ourselves, and with perseverance, we can create our own cycle of change. So why not give the following a try and see where it can take you?
Communicating
Whether we are liaising with suppliers and customers, working with other departments or speaking to team members, ensuring we communicate effectively is essential for developing positive working relationships. Taking the time to get to know one another personally and professionally can help us sympathise with one another and adapt to a more cooperative way of working.
Learning and Developing
Recognising our limitations at work can sometimes be the hardest challenge, however, learning from our mistakes and working on our weaknesses can often have the biggest positive impact. With the launch of software such as ACT, which enables AP teams to analyse where there is room for improvement and then tailor their training accordingly, it is now easier than ever to develop professionally and streamline a department.
Inspiring
For the last session of the day at the AP and P2P Forum, the discussion moved to the future of Accounts Payable and the workforce of tomorrow. Inspiring the next generation of AP professionals and instilling them with the same passion for the industry is essential for continuing the progress we have made as a collective. By encouraging more newcomers to consider Accounts Payable as a long-term career in which they can progress, we can help to continue raising the standards and perception of the industry.
What is the impact of treating accounts payable as a silo function within an organisation?
We’re exploring the importance of engaging with key internal and external stakeholders, including suppliers, business operations, procurement, and the wider finance community.
Let’s break down the barriers and foster collaborative relationships for a stronger, more efficient financial ecosystem.
The Impact of Accounts Payable as a Silo Function
Accounts Payable is often seen as an isolated department focused solely on processing invoices and making payments. However, this silo mentality can have several negative consequences on the overall efficiency and effectiveness of an organisation:
1. Missed Opportunities for Cost Savings: When Accounts Payable operates independently, it may miss out on identifying potential cost-saving opportunities in supplier contracts and payment terms. Collaborating with procurement and finance teams can lead to more favourable arrangements and improved cash flow.
2. Lack of Transparency: Siloed functions can lead to a lack of transparency and communication between departments. This can result in delayed invoice processing, disputes with suppliers, and ultimately harm business relationships.
3. Increased Errors and Fraud Risks: A lack of integration with other departments may increase the likelihood of errors and fraud. Engaging with stakeholders ensures multiple sets of eyes on financial processes, mitigating risks.
Engaging with Key Internal Stakeholders
1. Procurement Collaboration: Establish a regular feedback loop between Accounts Payable and Procurement teams. By involving AP in the procurement process, they can provide insights on supplier payment preferences and help negotiate better terms.
2. Business Operations Integration: Work closely with business operations teams to understand their requirements for timely payments. Regular meetings can help identify recurring issues and improve the invoice approval workflow.
3. Finance Team Synergy: Foster collaboration between Accounts Payable and the wider finance community, such as the General Ledger and Treasury teams. This collaboration enhances visibility into financial data and ensures accurate cash flow management.
Strengthening Relationships with External Stakeholders
· Supplier Engagement: Engage with suppliers beyond payment-related matters. Building strong relationships can lead to more flexible payment terms, early payment discounts, and a steady supply of goods and services.
· Clear Communication: Maintain an open line of communication with suppliers to address payment concerns promptly. Being transparent about payment timelines and any potential delays fosters trust and reliability.
Breaking Down Silos – The Way Forward
1. Cross-Departmental Meetings: Organise regular meetings involving representatives from different departments, including Accounts Payable. Encourage discussion on challenges and opportunities to promote a culture of collaboration.
2. Technology and Integration: Invest in integrated financial systems that connect Accounts Payable with other departments. Shared access to data ensures real-time information exchange and reduces duplication of efforts.
3. Training and Skill Development: Offer training programs to Accounts Payable teams, enabling them to understand the broader financial landscape. This empowers them to contribute meaningfully in cross-functional discussions.
By breaking down the silo mentality and actively engaging with key stakeholders, Accounts Payable can become a strategic player within the organisation. A collaborative approach not only enhances financial processes but also strengthens relationships with suppliers and fosters a more unified and efficient finance community.
Let’s embrace this change together and pave the way for a more interconnected and successful organization.