The pandemic has made it essential for companies to find ways to keep operations going, as well as the liquidity to fund those operations, which means that companies will be tapping into the expertise of the AP department more than ever before. Each year, Ardent Partners gives the low-down on ePayables and AP automation in their The State of ePaybles report. This article addresses some steps AP departments can take to meet these challenges.
Published by MetaViewer from Metafile
Each year, Ardent Partners gives the low-down on ePayables and AP automation in their The State of ePaybles report. This year’s report focused on how AP departments are rising to the challenges caused by the COVID-19 pandemic. The pandemic has made it essential for companies to find ways to keep operations going, as well as the liquidity to fund those operations, which means that companies will be tapping into the expertise of the AP department more than ever before.
But not all AP teams have been successful, agile and adaptable during this time. The difference-maker between companies experiencing increased late payments/delays and companies operating successfully despite being remote is their level of AP automation. Organizations with high levels of automation have found it much easier to transition to remote work in a short period of time with few to no hold-ups on payment processes. COVID-19 has made it clear that AP teams need to take a close look at their level of automation.
During this tumultuous time, AP has established a new agenda to face the challenges facing AP departments. Here are the steps that Ardent Partners highlighted:
Step 1: Ensure Continuity
The first step in surviving, thriving and recovering from the pandemic is making sure that the company can maintain business operations. According to Ardent Partners, “In periods of uncertainty, businesses, like people, revert to their more basic instincts; CFOs, and other finance leaders as a result, tend to manage more conservatively.” This means that cash management is more important than ever. Ardent Partners recommends that AP leaders have a clear line of communication with the CFO, as well as other financial leaders in the organization in order to understand the current cash management plan and how they can execute the strategy. Your team needs to be able to provide accurate and real-time data with decision-makers, and what better system to do that with than AP automation?
Step 2: Build Resilience
Once a strategy is in place to make sure the business is free of disruption, the strategy can be adapted to respond to the crisis. Teams will also be reviewing contracts and renegotiating with their supply base to build on their emergency plan. The AP team comes in by making sure that any changes to payment terms are captured, mapped to the proper systems and followed according to the new procedures. This may mean a workflow change in the company’s AP automation solution, as well as careful tracking to avoid late payments and duplicate payments, especially during transitions with suppliers and vendors.
Step 3: Support the Recovery
AP teams can help leadership make better, more strategic decisions regarding supplier/vendor payments. During this time, one key factor to supporting recovery is investing in digitization. AP automation technology provides fast returns, which is crucial during this time of uncertainty. In fact, 20 percent of AP leaders stated that the COVID-19 pandemic will lead to greater investment in ePayables solutions. For an AP department to be successful during this phase, and the phases prior, it’s important that AP teams provide value-added solutions, and AP automation is one of them.
During this difficult, uncertain time, AP teams are rising to the occasion and implementing objectives and strategies to help maintain business continuity, build resilience and support the company’s recovery. Investing in automation technology is one of the best ways for AP teams to provide real-time information for cash management, strong decision-making and long-term recovery beyond the pandemic.
When it comes to helping AP departments work toward pandemic recovery, MetaViewer is a top choice for accounts payable automation. From increasing visibility and precision to enhancing efficiency and work-remote capabilities, MetaViewer is there for today's remote and returning-to-work workforces.
