Accounts Payable News^®

As the year draws to a close and we reflect on the economic events of 2009, it seems inevitable that 2010 will be greeted with a mixture of anxiety and optimism.  What is essential right now is that organisations have the liquidity levels that they need.  A lack of liquidity can act like a muzzle on the expansion plans of any company – compelling it to either stagnate or go under completely.

The years leading up to 2008 were marked by high volume credit fuelled purchases which led to a crunch in cash flow. This credit binge has meant that many organisations have struggled to meet their operational and loan repayment obligations.  In many instances the effect of this has been to cause a gridlock in the flow of an organisation’s finances.

Recognising this, AP Managers are turning to solution providers to give them the support they need.  In some cases AP departments are beset with a large volume of invoices for relatively small amounts.  Inevitably this means that the cost per invoice in terms of processing time, materials and administration can be startling. In instances where this is the case, it makes sense to consider a provider like Invapay who specialises in being able to provide a platform where they act as a “Master Merchant”.  In other words they act as an overarching buyer and effectively wipe out the excessive setting up of a multitude of “one time only” vendors, and effectively release funds which would otherwise by tied up indefinitely.  In addition -

Invapay can help by:

• Reducing the administrative costs of chasing late payments
• Removing paper from the process
• Providing access to level 3 line item and VAT detail
• Improving compliance
• Providing a simple to use solution to  one time only vendor set up

While it’s true that corporate liquidity is affected by the underlying economic conditions, the adherence to a best practice code of conduct and an acceptance and investment into the benefits which new technology can bring - can make all the difference between a stable 2010 and one where the decision on who to pay and when to pay, becomes the sole organisational focus.