Speaking to interesting people and organisations who are looking towards the betterment of financial practices is just another perk of my role here at Caxton.
Recently, I had the opportunity to discuss the Accounts Payable Association (APA), ‘Q programme’ with Max Kent, the Programme Director, and Mike Pavely, the Head of Partnerships at the APA. The Accounts Payable (AP) function is often overlooked despite its critical role in maintaining a company’s financial health. The Q programme, a comprehensive review initiative launched by the Accounts Payable Association (APA), aims to change that by setting a new standard for AP operations. The insights from our chat reveal actionable strategies that businesses can implement to enhance their AP efficiency.
The Q programme meticulously examines six core areas of AP operations: function, processes, people, technology, sustainability, and disaster recovery. This holistic approach ensures that every facet of the AP function is scrutinised and optimised. "The Q programme was developed by our members for our members," Mike Pavely emphasised, highlighting the programme's collaborative roots and practical relevance.
Here are three takeaways I thought some business could think about:
Uncovering Opportunities for Cost Savings
One of the most striking revelations from our conversation was the widespread neglect of statement recovery and duplicate invoice checking in many AP departments. Max told me "0.05% of all transactions are typically duplicates or contain recoverable charges." This seemingly small percentage can surely translate into substantial financial recovery, providing a significant boost to a company’s bottom line without additional budget allocations.
Navigating ERP Implementation Challenges
Full-suite ERP systems are often heralded as the ultimate solution for integrated business processes. However, the specific needs of the AP function can be overlooked during implementation, leading to inefficiencies and integration challenges. "Every Q programme review shows that AP is often an afterthought in ERP implementations," Max said. This oversight necessitates third-party integrations to ensure AP processes are fully functional and efficient.
The Push for Integrated Payment Processes
Glad for me to hear of course, was that AP teams are increasingly advocating for integrated payment solutions within their existing systems. This drive towards integration is not just about convenience; it’s about accuracy and speed. "A payment button within the AP system, which allows for immediate payment execution once invoices match purchase orders, significantly reduces manual steps and errors," Max explained. Such integration streamlines the payment process, making it faster and more reliable. (PS if you want this talk to me about API and AP integration).
Members who have completed the programme report tangible enhancements in their operations and increased recognition from senior management. "The Q programme accreditation is a badge of honour for AP teams, giving them visibility and validation within their organisations," Mike shared.
The Q programme by the APA is setting a new benchmark for excellence in AP operations. By addressing common challenges such as statement recovery, ERP integration, and payment process automation, businesses can significantly improve their AP efficiency. For those looking to integrate advanced payment processes, reviewing the Caxton AP Product Information sheet could be the next step towards achieving seamless, efficient, and error-free operations.