How to create your own Account Payable continuity plan?
December 2, 2020
Crisis never knocks on our doors before arriving and the recent pandemic made it clear that no one was prepared for such a disaster in advance. Businesses all around the globe encountered the worst times in recent history.
The lockdowns, work from practice and other factors have enterprises globally reorganize their business processes entirely to ensure that the invoices are paid as before and their business operates in a stable manner.
Why businesses need an account payable continuity plan?
May it be cyberattacks, fires, or a pandemic, businesses need to prepare for these unprecedented times to ensure business continuity smoothly. What keeps certain businesses operate smoothly accompanies numerous factors that are skipped by the others. Analyzing the situation precisely, identifying the associated risks, and taking appropriate actions helps in improving the financial health and competitive performance of an organization.
At this point, having accounts payable continuity plan can keep you covered and bring your business’s financial health back to normal. Here are a few steps for creating your account payable continuity plans. So, let’s dive deeper into how you can create your own accounts payable continuity plan and keep your business on the safer side without wasting any more time!
Accept that you need to have a plan in place
First of all, you need to realize that your business needs to have a plan in advance to stay prepared during critical times like this horrific pandemic. So, accept that you need a plan and invest the needful resources and time required for creating an effective plan.
Give a thought to it
Different situations accompany different levels of risks, threats, and insecurities to a business. Minor threats come up with limited disruption, while a situation like a pandemic might turn your business upside down overnight. In that, it becomes inevitable to analyze all sorts of possible risks and threats.
Note it down
Once you have an idea about all the possible threats, you need to realize what impact an individual threat might have on your business. Invest ample time to document your processes and acknowledge how these processes might get affected due to some unexpected threat like some cyberattack or some other situation. List down the most important things like points of failure, which employees or teams will be most affected, stakeholders, sellers, and other people also be affected, how long the disruption will last, and the overall outcomes of the disruption.
Create a plan
Since you know the major threats that will impact your business processes and other operations, you must know how you can adapt them for tackling the disruption. You need to create actionable plans that actually work because that would be the best defense for your business and minimize the business losses.
It’s not just accounts that’ll be affected, so think out of the box and consider everything
A cyber-attack or any other unexpected event will not only affect accounts payable, but your entire business and you simply can’t deny this bitter truth. So, you will have to consider everything and everyone who is directly or indirectly connected with your business-consider every internal or external stakeholder and all other dependencies as a part of your plan. Have a shared action plan and consider any type of compliance or cybersecurity issue that might occur and account for them in the plan. After all, you need to keep your business running without exposing the business to potential threats.
Share your plan
As soon as the first draft of the plan is prepared, keep everyone in the loop so that no one misses out. Share with them the reasons behind the plan and make sure you get their feedback as well. Definitely, you’ll receive valuable suggestions that you skipped while making the plan.
Don’t skip the testing phase
The only reason why most of the plans fail is the absence of testing. An account payable continuity plan that is not tested would be worthless and all your efforts and time would go in vain. So, you need to ensure that you test your plan so as to be prepared for the adverse conditions in advance. For this, you can put choose one employee and ask him to work under an unexpected event and conduct a thorough evaluation in the end so realize if the plan has any shortcomings, will it need more improvements, or is it good to go.
Over to accounts payable automation
For the businesses relying on a paper-based approach, the manual accounts payable process has become a challenge- from receiving invoices, getting orders validated, receiving important approvals, paying suppliers are a few challenges that have become a daunting task during these critical times. At this point, automating the entire system and counting on the accounts payable automation platform from TERA can keep your business covered and ensure that your business receives, processes, and pays invoices over an automated platform where there is no scope of delays, complications, or any sorts of errors. TERA can help you with:
- Processing invoices accurately at anytime, anywhere.
- Execute on-time payments over a secure platform and control who you pay, how you pay, and when to pay.
- Get rid of paper-based invoice management and make a switch to an automated platform where all invoices are stored and controlled electronically that removes the need for manual management.
- Gain real-time visibility of all the spending and activities going on throughout your business and take necessary actions on time.
- Making electronic payments will ensure remote accessibility and the payments will be made securely, faster, which is also a budget-friendly and time-saving approach.
If your business is the one that is still struggling with manual payment methods, it’s high time that you connect with our experts to automate your system and streamline your payments as never before!
Connect with us at any time to learn more about TERA products!