Five “Secrets” Every CFO Should Know About Accounts Payable Payments
UPDATE: January 6, 2023
Accounts payable has traditionally been an integral part of the business, providing a necessary function in the financial cycle. However, it is now being recognized as not just a cost center but also a revenue generating opportunity to grow profits and scale your business.
In order to achieve business growth, it’s important for CFOs to focus on finding and funding solutions that will drive long-term growth. To help you understand how your AP department can lead your company to better cash flow management and drive more value, we’re revealing five “secrets” all CFOs should know.
“Secret” #1: Leverage Technology to Your Advantage
Technology has revolutionized the accounts payable process, making it faster and more efficient. Automated invoice management systems can help you quickly identify and pay invoices, while supplier payment portals allow you to make payments online without having to go through a middleman. Streamlining these processes will not only free up to 84% of your AP staff’s time, but you’ll reduce costs by eliminating manual, paper-based payment processes. Make sure your ap payments vendor offers fully managed payment delivery and operations. This will help increase payments security and reduce fraud by using a payments data management system. With a dynamic payment reporting and analytics platform to increase visibility into your payments you’ll gain peace of mind.
“Secret” #2: Build Relationships with Suppliers to Make Payments Faster and More Convenient.
This will improve supplier relations while freeing up cash and reducing the time it takes for funds to be received. Suppliers are motivated to get their money faster and more conveniently, so it’s a great place to start. Suppliers want a say in how they get paid and will adopt a solution that provides a payment method that is fast and easy for them. As an added benefit, you can drive value back to your business with reduced payment cost and revenue generating opportunities from electronic payment methods.
“Secret” #3: Save Time and Money by Allocating Resources Accordingly
In order to make sound decisions about where to allocate its resources, a company needs to have an accurate view of its current and future cash flow position. Accounts payable can help the broader business by forecasting cash flow and providing insights into how different decisions will impact the company’s financial position. Save time and money by encouraging suppliers to move to virtual card payments. This will give you the cash flow visibility and efficiencies you seek.
“Secret” #4: Control Costs by Implementing Supplier Payment Best Practices
Best practices for supplier payments can help a business save money on administrative and processing costs. This includes negotiating better payment terms with suppliers, taking advantage of discounts for early payment, and using electronic payments whenever possible.
“Secret” #5: Focus on Cash Flow, Not Just Efficiencies
Cash flow is one of the most important drivers for business growth. Accounts payable can lead the way by expanding its responsibility and becoming better stewards of cash flow for their company. That starts with rethinking supplier payments. The goal is to maximize revenue while cutting costs at every turn.
Hopefully these secrets have provided some insight into why your AP department should be focused on driving long-term sustainable revenue growth, not just controlling expenses more efficiently.
Want to learn more? We’ve got you covered! Click here to learn how AP Payments as a Service is a fundamentally different approach to AP Payments and combines service and software into a complete payments solution for mid-market and enterprise organizations.
Ready to learn more about Finexio, and how AP Payments as a Service could benefit your business. Click here to speak with an AP Payments expert.