If you work within the public sector you could be forgiven for feeling more than a little anxious. You’ve been aware that cuts are coming, but uncertain how deep the cuts will be, or if they’d affect you directly.

So, if your organisation is facing cuts in spending, and a freeze on all projects – including a technology freeze - how can you still deliver a best practice team, and the added value the CFO is asking for? Surely a limited workforce equals a limited output?

Well, yes and no. Obviously if you suddenly have 3 staff members where previously you’d had 5, there will need to be a series of adjustments. However, this is where adherence to structure can come into its own. Without doubt there are limits – it’s not possible to continue to cut the workforce without affecting quality, but many organisations have a degree of room for manoeuvre.

There is no doubt that the last few years have been difficult to negotiate for many organisations. Many of the problems facing business six months ago are still with us, despite a fragile economic recovery. With the globalisation of our economies, no industry or country is able to remain aloof from the troubles affecting another. In short, we are all tied together in an elaborate tangle of corporate debt, trading partners and overseas ventures - which in the good times help to create a powerhouse of trade and wealth, but in times where trade contracts, actually accelerates it.

You may wonder how AP is affected by all of this, but if your supplier is trading in Greece for example and is unable to call in its debt, your supplier is going to be looking for prompt payment terms from you. As always, the cash flow of any organisation is critical to survival, and AP has to do its part in making sure that the wheels of business run smooth.

The only sensible way to do this is by keeping a tight rein on who does what and on how they do it. Read (or create) your office bible – and really stick to its rules. You may come across the “I’m too busy to learn new methods of practice” individuals, but perseverance and gentle persuasion is the key!

Key Ways to Keep the Cash Flowing:

• Pay invoices on a predetermined schedule that takes supplier risk into account
• Ensure the accuracy and authenticity of invoices
• Process AP paperwork with a minimum of handling and expense
• Maintain & oversee new account opening procedures
• Appoint one key person to input data to the Master Supplier file
• Implement approval authorisation limits
• Invest in AP automation and eInvoicing
• Analyse your data
• Look into Supply Chain Finance initiatives
• Educate and train staff