There are many responsibilities involved in running a business successfully, but maintaining strong control over accounts payable is among the most critical. If organization leaders do not have proper oversight of these processes, it’s possible for errors to negatively affect the bottom line and even a company’s reputation.
Recently, the Accounts Payable Network reaffirmed the importance of effective accounts payable management by releasing a new volume of guidelines for these duties. The new book of best practices will provide companies with the insight they need to streamline their invoice processing, detect vendor fraud, maintain compliance with industry standards and more.
“In order for AP to transition from a back-office, ‘bill payer,’ function to a strategic business partner that impacts the company’s bottom line in a visibly positive way, AP must implement best practices to remove process inefficiencies,” said Judy Bicking, author, speaker and former Johnson & Johnson global accounts payable director.
According to Inc. Magazine, there are a few primary reasons that supporting cash flow and cultivating positive business relationships are among the most important functions of accounts payable. If best practices are not being adhered to, it’s possible for problems such as late or duplicate payments to occur, and these errors can severely damage a firm’s reputation.