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:

Regularly speaking about fraud prevention in team meetings.
Leading by example in following AP protocols.
Encouraging open communication on fraud-related concerns without fear of retaliation.

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:

Common types of AP fraud, including vendor fraud, invoice fraud, and expense reimbursement schemes.
Red flags to watch for, such as duplicate payments, sudden changes in vendor details, or unusually large invoice amounts.
Reporting protocols for suspected fraudulent activities.

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:

One team member handles vendor setup, while another manages invoice approvals.
Implement system-level restrictions so that no single person can complete an entire process alone.
Ensure a regular review of these duties to avoid collusion between employees.

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:

Routine audits of vendor lists and transaction histories.
Alerts for specific fraud risk factors like rapid changes in bank account details or suspicious vendor activity.
The ability to halt payments until anomalies are investigated.

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:

Verifying the legitimacy of new vendors before they are added to the system.
Maintaining an updated and accurate vendor master file.
Regularly reviewing vendor activity and relationships to ensure there are no conflicts of interest or unusual patterns.

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:

Offering multiple channels for employees to report suspicious activity (hotlines, online portals, etc.).
Clearly outlining the process for reviewing and acting on reports.
Providing assurance that there will be no retaliation for reporting in good faith.

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:

Conducting surprise audits or random checks.
Reviewing high-risk transactions, such as large or international payments, with extra scrutiny.
Analysing expense reports and reimbursement claims for potential abuse.

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:

Embedding ethics and values into the company’s code of conduct.
Recognising and rewarding employees who uphold these values.
Creating a sense of shared responsibility for fraud prevention across all departments.

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:

Ensuring Financial Accuracy: Reconciliations guarantee that the company’s financial records are up-to-date and accurate. Invoices that may have been missed, duplicated, or incorrectly processed can be identified and rectified, preventing payment errors and mitigating risk.
Improving Supplier Relationships: Frequent and consistent reconciliations foster trust with suppliers. Ensuring that payments are made correctly and on time strengthens relationships and enhances collaboration. Suppliers are less likely to raise disputes if they trust the accuracy of your payment processes.
Supporting Compliance: From a compliance perspective, reconciliations are key to meeting internal controls, audit requirements, and adhering to regulatory frameworks like SOX (Sarbanes-Oxley). They help ensure the AP department is in alignment with tax and VAT regulations, reducing potential penalties and legal risks.
Mitigating Fraud and Duplication Risks: Regular reconciliations make it easier to spot duplicate invoices or unauthorised transactions. This is especially important in large organisations with high volumes of invoices and payments, where discrepancies may slip through unnoticed without rigorous checks.

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:

Regular Review and Timing: Reconciliations should be scheduled regularly, aligning with key financial reporting deadlines or payment cycles. Regularity helps detect and resolve issues early, avoiding last-minute fire drills.
Automation and Technology Integration: Leveraging automation tools to assist in the reconciliation process can save significant time and effort. Integrated AP systems that pull data from multiple sources, including supplier statements, can automate the reconciliation of transactions, highlighting discrepancies for quick resolution.
Establish Clear Reconciliation Protocols: Ensure the AP team follows a standardised process for statement reconciliations, including the steps to investigate discrepancies, document findings, and approve resolution actions. A clear framework minimises the chances of errors and provides consistency across teams.
Collaboration Across Departments: Reconciliations should not just be limited to the AP department. Procurement, finance, and even operations teams need visibility, as discrepancies might stem from errors in purchase orders, delivery, or goods receipt processes.

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:

Data-Driven Insights: Statement reconciliations generate valuable data on payment trends, supplier performance, and process inefficiencies. Analysing this data can provide actionable insights, enabling AP to proactively recommend improvements or negotiate better payment terms with suppliers.
Building Financial Resilience: By maintaining accurate financial records, the AP department contributes directly to the company’s working capital management. Efficient reconciliations improve cash flow forecasting and can inform broader financial strategies, positioning AP as a key player in financial decision-making.
Aligning with Corporate Goals: A department that supports efficient cash flow, supplier satisfaction, and compliance becomes invaluable to the broader corporate strategy. The data gathered from reconciliations can be shared with leadership to influence high-level decisions, further embedding AP into the company’s strategic framework.
Risk Mitigation and Control: AP can act as a control mechanism within the P2P process. By flagging irregularities early, the AP department helps the business avoid financial risk and costly errors. This not only saves money but also strengthens the department’s role as a key safeguard for the company’s financial health.

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:

Cost Efficiency: Both sides aim to acquire goods and services at the best possible price, negotiating favorable terms with vendors and avoiding unnecessary spending.

Timely Transactions: Ensuring invoices are processed and payments issued promptly keeps suppliers happy and avoids late fees.

Data Accuracy: Accurate data entry throughout the process minimizes errors and streamlines workflow.

Internal Controls: Both AP and P2P play a role in upholding internal controls to prevent fraud and ensure proper financial oversight.

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:

Shared Communication Platforms: Utilize collaborative platforms like project management software or team communication tools. These platforms provide a central hub for sharing documents, assigning tasks, and keeping everyone on the same page.
Standardised Reporting: Implement standardized reporting formats to share data and updates consistently. This ensures everyone is working with the same information and reduces the risk of miscommunication.
Automated Alerts: Set up automated alerts for critical information such as upcoming invoice due dates, purchase order discrepancies, or potential fraud alerts. This proactive approach keeps both teams informed.

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:

Data Entry: Automating invoice data entry through AP Automation technology eliminates manual keying and streamlines the process.
Approval Workflows: Implement automated approval workflows for invoices based on pre-defined rules. This reduces manual routing and ensures timely approvals.

Matching Processes: Utilise automation for three-way matching of invoices with purchase orders and receiving reports. This minimises discrepancies and speeds up payment processing.

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:

Vendor Management: Building stronger relationships with key vendors, negotiating better terms, and identifying opportunities for cost savings.

Process Improvement: Continuously evaluating and improving the procurement process to identify inefficiencies and implement more efficient workflows.

Risk Management: Collaborating on strategies to mitigate risks associated with fraud or errors in the procurement process.

Data Analysis: Utilising data from the procurement process to identify trends and make informed decisions about future purchases and supplier relationships.

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.

Auto approval of purchase orders up to £500 and auto approval of the invoice too! Analysis of data showed that 47% of invoices received were for £500 or less, but the total of all of these invoices were valued at under 2% of the total annual budget – in effect too much time was spent on lower value invoices when the focus should be on higher.
Review of past AP data where manual input was undertaken resulted in being able to recoup duplicate payments to supplier at around £3m over a 5 year period. Duplicate invoice numbers, added characters, dots, dashes all to bypass the system saying the invoice was already there.
Cash refunds in partnership with the Post Office, where a customer for a one off refund doesn’t need to be created in the system, resulting in a turnaround from request to payment down to 10 days from over 30 days originally.

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.

Have you ever wondered if your accounts payable processes are prepared for a recession?

Nothing is certain about the UK economy at present, but with the Bank of England warning of a recession looming, businesses need to be prepared.

When there’s uncertainty in the economy, business owners need to take stock of their assets and control whatever they can to weather the impending storm.

This means ensuring your AP processes are efficient. Streamline your internal operations, so everything will run as smoothly as possible under challenging circumstances. Accounts payable is a good place to start when you’re assessing your company and preparing to tighten your belt financially.

Managing accounts payable during a recession

One thing you must avoid during an economic crisis is disruptions in your supply chain. Businesses all over the UK will be doing their best to attract and retain customers who are strapped for cash and facing their own challenges.

Even when your own income may have dipped, the timing of payments to suppliers remains fundamental to running your business. Cashflow issues shouldn’t mean you are keeping a vendor waiting for payment.

Managing your accounts payable system efficiently means discovering the right balance when it comes to paying invoices and keeping your business well-stocked. You must have transparent communication with suppliers and a complete understanding of cash flow.

You also need the ability to streamline and improve AP processes that aren’t working, rather than settling into a familiar routine with potential blips. Turning a blind eye to issues because you feel you have enough to deal with already isn’t the way forward.

Your accounts payable processes will fuel your business and help you to move forward in a time of great economic uncertainty. Get it right now and it will become a key driving force to surviving the recession.

Understand cash flow

Get a complete view of your business’s cash flow by first focusing on the basics. Run a fresh projection on your estimated income and expenditure. Estimating how much cash you expect to flow in and out of your company during the changing economic climate is the first thing you should do.

Consider the size, sustainability and general health of your business. Consider whether there are any possibilities for growth, or whether it will be a case of survival, rather than expansion.

A new projection might bring about small, but vital, changes in your operations. It may lead you to revisit your strategic plans and adjust your approach accordingly to take into account a potential recession looming.

Using the appropriate accounting software can help business leaders to keep on top of cash flow by having accurate and timely information at their fingertips.

Surveys have revealed almost 70% of employees believe their company CEO has made important decisions based on information that isn’t accurate and up-to-date. This is a shocking number at any time, but in particular during a period when the nation is suffering an economic downturn.

During times of great turmoil, having an accurate, complete picture of your business’s cash flow is crucial to forecast and plan effectively.

Clear and proactive communication

Communication and relationships are vital to the success of any company, whether there is a recession or not. When you’re making changes and revenue is at risk, communicating in a clear and transparent way with your suppliers and contractors is the key to maintaining good relationships.

This is where accounts payable comes in, as keeping your finances up-to-date and estimating where there will be a potential rough patch will eliminate any nasty surprises.

The better your line of sight to AP processes, the more chance you have of keeping things on track internally. This will help keep your good relationship with partners and suppliers on track too.

Being proactive means communicating any economic changes that result in a change in your priorities or strategies to your suppliers right away. You must be open and transparent at all times, including communicating any changes to all stakeholders.

Be more accurate

While it’s natural for everyone to feel nervous during a recession, including your suppliers and partners, having accurate information about the state of your finances is vital. If you’re still working on a manual accounts payable system, your processes will be slower and there will be a greater chance of human error sneaking in along the way.

When there is a recession, you may be short-staffed in general, but won’t be able to take on any more staff due to financial constraints.

Any tedious manual approval processes will add additional work to already overstretched employees, at a time when they’re probably struggling with extra responsibilities to combat a shortfall in resources.

This can result in extra stress on your financial team in the accounts payable department. Any processing delays will also cause more stress for your suppliers and partners when manual processes cause delays in payments.

Having a streamlined and efficient automated AP system can eliminate delays and reduce stress for everyone.

Make savings where possible

When you process invoices manually, it tends to be more expensive in terms of employee hours worked. Research by Levvel Research has revealed the cost of manual processing is, on average, around £13 per invoice.

This covers the cost of labour throughout the whole process. It doesn’t take into account the potential for mistakes and the possibility some work may have to be done again due to human error. It also doesn’t cover the time spent on reconciliation.

Keeping a lid on costs is vital in today’s climate and processing invoices manually isn’t the most cost-effective way of running a business. Surprisingly, despite manual AP processes making less sense today, a staggering 86% of small businesses say they still have some manual processing elements to their accounts.

While we’re heading towards particularly challenging times today, if you take a proactive stance now and look at your accounts payable processes, you will have a better chance of easing the uncertainty and setting yourself on the right road to survive.

Businesses are facing huge challenges as a result of the troubled economy. Inflation has reached a 41-year high of 11.1% and the Bank of England is warning of a long recession looming.

As a result, businesses are increasingly automating their accounts payable process to increase efficiency going into 2023. Surveys have revealed CEOs’ main goals are digitisation, growth and efficiency. All three are directly connected in post-pandemic Britain as businesses streamline processes to utilise limited resources most effectively.

The current economic climate, combined with businesses still dealing with the impact of Covid, has led to the adoption of digital technologies speeding up by at least three years, according to research.

Read on to find out about the top accounts payable trends for 2023 that are aimed at preparing your AP team for survival in the mid-term and success in the longer term.

1. Paperless processing

In an era where digital transformation has been rapid, businesses are set to further replace time-consuming manual activities and paper documents with electronic accounts payable processes. Around 50% of organisations surveyed are already using Optical Character Recognition technology to read documents in the processing queue.

In addition, more than half of respondents are using an electronic invoice matching system to support AP processes. Only 15% of businesses are using artificial intelligence-based cognitive automation and 36% use rules-based robotic process automation on data-related tasks.

The indications are these numbers will increase in 2023, which is good news for the 50% of organisations that are still “pen-pushing” in the accounts department.

2. Changes in productivity and costs

The significant increase in process efficiency in accounts payable suggests the general cost of operations will be driven down in 2023. However, on a more cautious note, these savings are likely to be offset by rising labour costs and a general shortage of talent.

Digital accounts payable technology has become more affordable and accessible for companies of all sizes in recent years. Studies into invoice processing efficiency between 2019 and 2022 reveal that productivity has increased by an average of 7% during the past three years.

The data shows organisations across the board have become more efficient and productive since 2019. This is “almost certainly” down to the digital transformation, according to analysts.

The impact has been greater in low and medium-performing organisations. Processing efficiency increased by 28.6% and 16.6% respectively in these performer levels. This is because typically, these organisations use fewer employees to carry out the related transactional activity.

3. Impact of the “Great Resignation”

The impact of the “Great Resignation” will continue to be felt in AP departments. It describes an economic phenomenon whereby employees are considering quitting their job.

It began early in 2021, in the immediate aftermath of the Covid-19 pandemic and lockdowns. Significant social and economic changes impacted people all over the world and thousands decided it was a good time for a career change. The main reasons included salary stagnation and the rising cost of living.

The latest figures show 40% of workers are considering resigning from their jobs. An increase in labour costs is being driven by the talent shortages and employee retention problems that have prevailed recently.

The Great Resignation has specifically impacted accounts payable costs, where salaries have increased by 20% for a senior AP clerk between 2019 and 2022 as companies strive to attract the best talent. Companies trying to get a handle on costs during the anticipated recession will be looking towards more automation to try and save money.

4. Better forward planning

Accounts Payable has already seen tremendous changes since 2019 in terms of costs, but because it is a key process for every business, it must work effectively. People tend not to notice AP when it’s working well, but if it stops working, they will certainly notice the difference and everyone will know about it.

According to research, only around 30% of digital transformations in the accounts payable department are completely successful. This is because many organisations are rushing into it without having formulated a clear idea of how it will work.

Those taking the plunge in 2023 must make sure they have the correct processes in place to make it work efficiently, saving the business money and making it more sustainable. Those who miss the mark may experience a negative impact until they get it right.

5. More businesses will be outsourcing

Research suggests there will be an increase in accounts payable outsourcing in 2023. Many successful financial organisations have started outsourcing as part of their operating model.

The Deloitte CFO Signals survey reveals 34% of finance executives have indicated they are likely to increase outsourcing over the next 12 months in their day-to-day operations.

A top outsourcing firm will do accounts payable transactions for a living. They can do more than just perform the tasks and provide the talent. They are also experts at optimising processes to ensure the highest levels of efficiency and productivity.

They are the experts in implementing digital technology, removing the risks from these initiatives. If you have outsourced your AP activities to a professional consultancy, they should guarantee the outcomes when it comes to the delivery of your expected cost savings and ROI.

When you achieve better results for your transactional activities through outsourcing, this should lower your costs and improve your operational efficiency. It will enable you to focus on the key digital transformation projects that are the core of your business.

The idea is to allocate the resources previously swallowed up in administrative tasks into other parts of the business. By working with a professional AP provider, you can also overcome challenges such as different time zones and geographic proximity, language barriers and communication challenges.

Conclusion

The Great Resignation and the digital transformation will continue to impact the world as we know it during 2023. Forward-thinking finance executives will overcome these challenges by incorporating digitisation and outsourcing into their operating model to solve talent shortages and labour costs.

Once you have improved operational performance and productivity, this will enable you to start working on the goals of growth, further digitisation and efficiency.