All businesses strive to expand and become more successful. The unfortunate disadvantage associated with this is the increased workload. This is especially the case for financial departments. Increased volumes of suppliers results in more invoices requiring processing and more reports to be generated which is a major pain point for many individuals working in this department. An increased workload can cause stress, therefore you need to put systems in place to cope with this. By taking the following steps you can minimise this risk: … Read More >
In the wake of May’s letter to trigger Article 50 there is a growing fear of economic risks to the UK economy. By leaving the EU there is more uncertainty for what the future holds for the UK. That coupled with the focus on automation and its impact on employment creates a fog of doubt.
This report by PwC implies that over 30% of the UK’s financial and insurance industry jobs are at risk of being replaced with automation by the early 2030s. Employment in the transportation, manufacturing and retail industries are also at risk of job automation at 56.4%, 46.4% and 44.0% respectively. This level of comparison suggests the financial and insurance industry is relatively safe. However almost 1 in 3 jobs in an industry is extremely high.
There is a silver lining. The research suggested that, rather than eliminating jobs, the associated tasks and the manner in which they are completed will gradually alter. Tasks which are the simplest, and the least expensive to automate, are manual tasks including … Read More >
Late payments have long been an unfortunate part of the AP department’s culture. This causes bad relationships with suppliers and increases payment cycles thus reducing credit supply. It’s especially evident where larger companies neglect to pay their smaller suppliers on time. As in most markets the UK primarily consists of SMEs (small to medium enterprises). Late payment culture has become such an important issue in the UK that changes are being made to rectify this. From April 2017 the Prompt Payment Code (PPC) will come into action.
What is the Prompt Payment Code?
It is a solution to the late payment problem. PPC requires public average payment cycle performance reports from large companies and limited liability partners twice a year. This will encourage larger companies to pay all of their suppliers quickly, not just the large ones, and make them accountable for their actions. Without measures such as this large companies and limited liability partners have been able to ignore SME’s need to be paid in a timely manner. Instead they have delayed payments to improve cash flow.
Each year companies devote large budgets to sourcing employees with skills and qualities that suit the organisation. Once new recruits are brought into the company, regardless of assigned department, some form of training is required for the new employee to learn how the company operates. However this level of investment could be reduced if management focus on retention rather than recruitment. By introducing the following suggested changes to the style of management this will quickly benefit the company.
Remind the AP team of the company and department’s goals
To ensure the company and department goals are harmonious train staff not only in AP processes but also in the procedures of departments AP works closely with. Equipped with this knowledge AP employees will understand and have empathy for challenges in other departments and can alter their communication to reflect this. This provides the foundation for better relationships to be built between departments.
Don’t lose sight of the big picture
It can be easy to get lost in the small details, especially in the AP department. It’s important to communicate the company’s overall goal and how the AP department can work to achieve it to your team. It is also vital to … Read More >