Are Your Departments Winning TOGETHER?

Are Your Departments Winning TOGETHER?

Here are some important ways to ensure that they are:

In the world of Sales/ Accounts Payable and Accounts Receivable, a lot happens after the sale is made and the contract is signed. As someone who has spent many years fixing the financial disconnects so that customers could get paid it can be very challenging to backtrack the sales transactions, locate the copy of the signed contract which houses all the pertinent information like the contract #, amount of the sale, where the invoice should be submitted to and who to contact with any questions or concerns. These 4 areas (sales, accounts payable, accounts receivable, and contracts) are critical to the successful sale of the product or service and delivery to the customer or end user.

Over the years Accounts Payable processes and submits invoices for payment without all the necessary information or know what is holding up the payment.

Let’s look at a recent example: A government agency had a contract with VAR Reseller of IT and software. This company submitted its Final Invoice for payment over 4 months ago and could not figure out why it had not been paid. They kept contacting the government’s payment office asking for an update on the payment status. There was a gliche in the paperwork which required the sales representative to contact his government end user to confirm that all the deliverables (products or services) had been met before the invoice could be approved, resubmitted for payment and processed. The government’s contract administrator had to get involved, ask the IT folks AP/Sales and AR what actions they took previously to get this issue resolved.

Happy to report after much follow up with the IT firms AP/AR and Sales and the government payment office the final invoice was processed and paid.

It is important to understand the flow of what happened and why AP/AR/Sales and Contracts needed to work together to get the Final Invoice paid.

At BCS Solutions here are 5 Things that we believe are important to collect Past Due Invoices:

  • The sales representative should know his/her Accounts Payable and Accounts Receivable specialist(s).
  • The AP/AR specialist should know the Sales Rep for his /her accounts. Those internal relationships are key factors in how /when an invoice gets billed and eventually paid by the customer
  • Connecting the dots with these departments is critical to improving and reducing the Over 60/90/120 days invoices that are still past due.
  • That the invoice not being billed properly and timely affects payment down the line.
  • That having a copy of the signed contract is critical to get payment issues resolved.

In working with Accounts Payable (AP) /Accounts Receivable (A/R) and Sales, we discovered that there were times that all 3 departments do not interact with each other. They did not understand how intertwined they are to the overall financial success of the company.

Accounts receivable and accounts payable share a common interest in making sure that an invoice gets paid as quickly and seamlessly as possible. There are numerous opportunities for things to go wrong in the process, and it’s important that an invoice be properly prepared—so that its mission is accomplished. In an AP/AR discussion, AP can speak to what facilitates prompt payment. AR can speak to the challenges of slow payment and explain the steps it takes in the collection process.

AP/AR and Sales are intertwined to get the invoice paid, increase revenue and cash flow in the company
Make sure if you are in AP/AR/Sales you are building those connections. They come in handy when chasing down money. (Trust us!)
Remember!

At BCS Solutions We Fix the Financial Disconnects! It’s not a money problem, it’s a system problem! Let us help you!

Click here to contact us today!

2018-05-23T01:39:12+00:00