Every now and then we all need to take a step back and thank those around us for helping us on both a personal and professional level. Accounts Payable (“AP”) interacts with many groups that are critical to its’ ultimate success. And as AP leaders head back to the office from what was hopefully an enjoyable Thanksgiving, here are five groups in the workplace we should all be thankful for:
Procurement – While not all purchases are PO based, it is critical that AP maintain close ties with purchasing and procurement groups in their organizations. Working closely together yields improved efficiencies, cost savings, more-straight through processing, and happier end-users who benefit from increased levels of automation.
Treasury – We’ve all heard it a thousand times – ‘Money is the lifeline of an organization’. The Treasury department or a person handling the Treasury functions, in addition to their other duties, controls and manages the organization’s money (in terms of capital and liquidity) to make sure they have the funds required to pay outstanding liabilities (aka – invoices). Accounts Payable has to work closely with Treasury to make sure they have the cash on hand to pay its bills as well deciding when it makes the most sense to pay (accepting early payment discounts, paying on-time, or paying late).
Finance – Working closely with Treasury, the Finance department manages an organizations’ money. It provides planning, auditing, accounting, and controlling functions. Accounts Payable works closely with Finance, and in many cases, is a part of the Finance organization. Finance and AP work closely with one another to ensure policies are set and adhered to and liabilities are managed. If they are managed well then financial reporting can be done on time and as accurately as possible.
IT – Who keeps all of the systems in a company up and running? IT of course. Many of us take for granted how hard IT works behind the scenes to keep everything running smoothly. It is often only when something doesn’t work properly do we think of IT. Security, networks, infrastructure, hardware, clouds, integrations to ERPs and other systems, etc., etc. IT keeps everything running smoothly so we can focus on doing our jobs.
Suppliers – Last but by no means least…Suppliers. Accounts Payable in many organizations spends 25 – 50+% of its time interacting with its supply base. Maintaining good relationships with suppliers is critical to the ongoing success of every organization. Many suppliers spend more time working with their buyer’s AP departments than any other part of their organization. Having a good working relationship is key.
Conclusion
Accounts Payable has much to be thankful for and there are many groups and people that make doing their jobs possible on a daily basis. This time of year provides us with a great opportunity to take a step back and be grateful for all of those that AP leaders get to work with, both within their own enterprises, as well as their suppliers.
Hope everyone had a great holiday. Happy Thanksgiving to All!
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