Tips for Effective Payables Workflow Management
Usually, startup ventures, small businesses, and entrepreneurs focus on sales and marketing. However, accounts payable management is also valuable. It helps you maintain a decent track record and gives you stability. A decent accounts payable management can help your business while a poorly managed one can ruin your whole system. This is why it is important to follow productive tips and instructions for smooth management. Below is a brief list of strategies bookkeeping companies in UAE follow to keep control of their accounting and bookkeeping clients:
1. Come up with a Robust Strategy
A key to good management is when you have a developed strategy ready for your accounts payable management. Good plans help everyone involved in the procedure in having a clearer understanding of how the process should be followed, where delays could take place, and how long the process is supposed to take.
- It further helps in anticipating problems and delays, which helps in planning how to handle them beforehand.
- It also contains sections meant for streamlining the business’ liquidity
2. Begin the Payment Process as Soon as You Get the Invoice
Understanding the process of payment before time will help in tackling issues easily. It is possible to streamline accounts payable workflow if the payment procedure is started as early as possible. This also allows for any problems in the invoice to be detected, and rectified, quickly.
3. Make the Higher Ups Responsible for Accounts Payable
The responsibility of checking whether all payments are sent out on time is not a small task. Therefore, it must not be overlooked. Hence, finishing accountability should be left in the hands of the upper administration who are directly involved with the corporation’s performance.
4. Give Authority to the Right Person for the Task
It is quite important to know what your workforce is good at doing. This way, you can give the right job to the right person, allowing you to utilize your staff efficiently.
5. Chain of Responsibility
Follow the RACI model for this process. This gives a team goals and positions to follow, making it easier to manage responsibilities.
6. Efficiency in Managing People
The individuals involved in an important process need to be guided and managed so that work is done effectively.
7. Effective Communication
Communication is a key factor in a team, as it helps in avoiding misunderstandings and results in a more efficient workflow.
8. Team Engagement
Team members in the field have more say about the procedures and might have better insight as well, getting everyone’s opinion helps with the decision making process.
9. Application of 5W1H Protocol
This strategy asks essential questions: when, where, who, why, what, and how? This can be used internally and externally to improve workflow management.
10. Vendor Portal
Creating this will give vendors access to their portal, so they can keep tabs on their products.
11. Management of Vendors
Vendors usually have terms and these might change based on your business relationship with them. Managing them properly is beneficial for your company since you can improve your relations with them.
12. Simplify the Payable Process
Create a plan to simplify the process for efficiency and reliability.
13. Automation of Process
This trend in the industry has helped companies in many ways. Automation solutions are cost effective and easily available as well.
14. Protection Against Frauds
Fraud can be experienced by anyone, which is why you should take measures to keep it at bay. A preventive approach is always the best approach with fraud protection.
15. Be Goal-oriented
By giving your teams tasks and goals, their motivation will go up they will be able to visualize their contributions and progress better.