What changed for Accounts Payable and how your team can cope up?
The situation in which we all are currently, no one was prepared for this- especially the sudden work from home practice. No one ever dreamt that we wouldn't be able to see our work and our coworkers' face for around one complete year. Even though businesses are operating remotely now, it is still a nightmare for most business operations as the pandemic has bought rapid disruption in the entire market.
Since we all are dealing with this unprecedented situation together, we need to realize how the accounts payable system has changed recently and learned how we could cope with it to get back to normal and bring our businesses on track once again!
How the pandemic uncovered the flaws in the traditional accounts payable system
In the past few months, businesses have experienced a substantial change in their entire accounts payable system due to the unexpected circumstances during the remote working practice. So, this crisis has put another level of pressure on accounts payable teams and the industry is set to figure out smart ways to pay invoices without any delays and errors while bringing the operations back to normal.
The pandemic has eventually exposed the flaws that existed in the traditional accounts payable system. Some businesses have not been affected much as compared to the others. Well, it is very clear that the businesses who managed their accounts and finances manually and with a paper-based approach, they are in trouble since the pandemic began, while on the other hand, organizations that had automated accounts management system were able to resist during these critical times.
The backlog of paper invoices, delayed payments, lack of communication- there are endless things businesses all across the globe are undergoing right now.
AP departments are going through uncertain times, working overtime, adapting to new practices, reaching out to the suppliers, and paying electronically (which is actually getting delayed and we need to make a way out to make it efficiently through the crisis). At this point, we need to find effective ways that are realistic and will help our teams in real-time and reduce their headache in the long run.
How Your Team Can Cope up?
Whether it is automating the entire accounts payable process, improving the communication, or something else, we need to figure out ways right away so that the teams and businesses don't have to suffer anymore. So, here are a few proven tips that can help teams cope up during these critical times.
Adding value to working capital strategy
The accounts payable teams are usually the part of the working capital strategy where they plan the demands of the upcoming months. But right now, the team isn't getting involved in these discussions anymore.
At this point, accounts payable can add instant value for offering insights into the effect a projected strategy might have on the sellers. The team can regularly stay in touch with the sellers and get a clear idea of their financial health. Gathering all these insights will help create a better working capital strategy that caters to the organization's requirements, leaving no negative impact on sellers.
Proactive communication with the sellers
The factor that can help your business survive during these turbulent times. For this, the accounts payable team needs to proactively interact with their sellers not only when they have any queries but regularly take the initiative to communicate with them and inform them about when they can expect their next payment and other important things. With this, it will help them plan their cash flow more conveniently.
Well, communicating with countless sellers manually won't be possible for your team. At this point, relying on an e-invoicing system can help in collaborating with the sellers in real-time, where the sellers will be able to check their invoice status. So, your team can save a lot of time and effort while keeping the sellers informed at all times.
Going for digital invoices
For accounts payable teams, getting maximum sellers for sending digital invoices is the prime objective and the majority of the invoices are paper-based. Presently, there are plenty of invoices that are sent to empty offices and are going unpaid at the moment.
The businesses that have an e-invoicing solution are on the safer side to process invoices quickly. But for the businesses who don't have one, you must ask your sellers to email you PDFs so that the process becomes quick on both ends. Else, investing in an e-invoicing system is the ideal decision you can make for your business.
Rising malicious attempts
With the businesses going online during these critical times, fraudulent activities are rising as never before. Hackers look for the operational weaknesses in a business network and get access to the finances, accounts, and other confidential data. If that is the case, there are many risks accompanied not only for the business but also for their customers and every person who is directly or indirectly connected with the business.
Going digital in that case can keep businesses on the safer side and minimize the scope of malicious activities and other risks accompanied.
Automate your business operations with TERA!
All in all, taking your finance and payment system online is a worthy decision to stay covered not only during these tough times but beyond that. If that's the case, TERA can help you take your traditional finance system online and help you streamline your financial operations, process invoices digitally, make payments on time without delays, and keep your business and customers safe from all sorts of data threats at all times.
Wish to explore more about TERA products? Connect with our experts today and learn how TERA products can be an ideal choice for your business and help in managing your finances like a pro!