Raising the Profile of the AP/P2P Profession: A Critical Imperative

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:

• Enhancing operational efficiency: By automating and streamlining workflows, they minimise manual processes, reduce errors, and free up resources for more strategic activities.
• Ensuring compliance: Adherence to internal controls, regulatory requirements, and industry standards falls heavily within AP/P2P, safeguarding the business against fraud and regulatory penalties.
• Contributing to sustainability: P2P’s role in procurement and supplier selection means they can advocate for and implement greener, more sustainable sourcing strategies.

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?

1. Strategic Value:

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.

2. Professional Development:

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.

3. Enhancing Process Improvements:

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.

4. Mitigating Risk:

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

1. Promote Success Stories

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.

2. Leverage Technology and Innovation

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.

3. Education and Awareness Campaigns

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.

4. Showcase Leadership

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.

5. Professional Advocacy

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:

1. Increased Stakeholder Engagement

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.

2. Internal Satisfaction Surveys

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.

3. Recognition and Promotions

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.

4. Improved Process Efficiency

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.

5. Adoption of New Technologies

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.

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