What Priorities Will The Accounts Payable Team Take Up During Recession?

Looking at the present business scenario, the pandemic has severely impacted the expenses of the business. The inflation rate, interest rate, borrowing expenses and cost of capital for business have increased to an extent. The most challenging question for every business is – What will be the future of the business in the next 12 months? “RECESSION” is the most common affecting factor for every business as the inflation rate has hiked up too fast.

Here comes the Accounts Payable team at our rescue. Before understanding what the accounts payable team can do for a business during a recession time, a few things can come to your mind at the end is: what if any business doesn’t have an accounts payable team? For such businesses, you can always have an option of outsourced accounts payable. Telling in simple words: whatever work the accounts payable team will do for a business is done by a 3rd party company for your business. Due to accounts payable outsourcing, you don’t need to create a new team or hire new staff or any other overhead charges. The accounts payable outsourcing services will be more cost-effective than hiring a whole new team, providing training, and much more.

Priorities That The Accounts Payable Team Takes Up During Recession

The accounts payable team mostly focuses on the following 3 aspects:

1. Efficiency

The accounts payable team will help you to maintain the level of output with minimal resources or several resources available at their disposal at the time of recession. They can optimise the workflow wherever possible. They can improve business processes without adding any new human resources to the company.

2. Vendor Relationship

Supply chain management and supplier relationship have become a top priority for the accounts payable team. Due to the recession, a few suppliers have backed off from supplying businesses at the old rates. In this scenario, the business has to work with a limited supplier who is still ready to supply your business. With a few reliable suppliers, you need to maintain a good relationship to be in the race. The accounts payable team will be doing the work for you so that in dire urgency the suppliers are at your service.

3. Visibility

During the recession time, the stakeholders would demand a clear view of the cash flow and working capital so that they can take important business decisions with ease. So the accounts payable team will do the job of presenting a clear viewpoint of the business impressively.