We have been saying it forever. Digitising P2P processes now will make your accounts payable function more resilient in the future. But, what if the future is now?
With the current situation, many finance departments have started to realise the importance of digitisation within accounts payable. Many finance professionals are struggling to operate as normal with their current processes whilst working from home. With obstructed communication between those responsible for ensuring invoices get paid on time, various issues can and will arise.
Managing P2P processes and paper-based invoices at home
Every organisation is different; however, many still accept and manually process paper invoices. In fact, almost 60% of invoices arrive loosely on pieces of paper in the UK. In a time of crisis – where going to the office is not possible, there is no visibility of these invoices. As a result, invoices may not be paid within the specified terms.
In the same study, 63% received duplicated invoices at some point, and a third of these had admitted to paying them. This is what happens when there is no visibility within accounts payable and no control over who is in possession of the invoice.
Cloud collaboration features enable accounts payable and finance departments to work together, even if all members of the team are working away from the office. It helps to have a modern platform which can be accessed from a web browser. This provides full visibility of all invoices and their status, to ensure that invoices are still approved and paid according to payment terms.
Retaining strong supplier relationships
Many companies have found themselves financially vulnerable. And, there is a chance that you or your suppliers could also be affected. While it is too early to predict the long-term impact, the situation is not permanent. It is important to retain strong supplier relationships to carry on as normal when it is safe to do so.
With 90% of finance professionals admitting to regularly having phone calls from suppliers chasing payments, and 53% saying they can’t provide information instantly over the phone… there are clearly some issues.
Some suppliers may request early payment, or you may struggle to submit payments yourself. Reporting dashboards ensure that you can see what is possible during this time. As a result, you can see where costs can be cut and set expectations to suppliers to find a temporary resolution.
Cash flow forecasting issues routed from accounts payable
Cash flow forecasting is more important now than ever. With 56% of businesses experiencing cash flow forecasting problems routed from inefficient accounts payable, can you really take the risk? Modernising and digitising your approach to procurement enables you to remain profitable in the current climate and will make your company resilient towards threats in the future.
You haven’t acted too late. We can help your accounts payable department become proactive, instead of reactive. Our innovative P2P solutions give you a 360° view of the entire purchase to pay landscape. Additionally, with one-click approvals and a single view of the truth, the business can continue as usual during challenging times. Find out more about managing P2P processes remotely.