ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE - THE HIDDEN DEPARTMENTS (PART ONE)
If we came looking for your Accounts Payable and/or Accounts Receivable contacts on your website, would we find them? I suspect not!
The question then is; "Why are these two contacts hidden from general view?" I would be interested in your management's rational for this decision.
In regards to Accounts Payable, I can perhaps understand this contact being less exposed. With the amount of internet fraud and the scams which exist these days, not having a visible email contact is perhaps understandable.
In addition, some business owners and managers may also use this "hidden concept" as a tactic to retain cash. It is often thought for instance, any process which holds up the payment of cash, is a good tactic.
Irrespective of why Accounts Payable contacts are not visible on your website, there are always penalty costs to your business. Amongst these costs are those caused and associated with recoverng over-payments, duplicate payments or incorrect payments.
Make no mistake, Accounts Payable errors do occur, especially in a major corporate business. In these businesses, you will find the Accounts Payable processes are often fragmented and handled by employees with varying degrees of motivation.
Furthermore, all businesses face two types of suppliers. Type one suppliers like to do "the right thing" when payment mistakes happen in their favour. Type two suppliers see your Accounts Payable mistakes as legitimate cash retention opportunities.
Type one suppliers do however, have limited tolerance. If they can not contact your Accounts Payable easily, in time, the type one supplier may also not contact your business.
My cashflow solution to recover your firm's Accounts Payable mistakes, is to have a designated email and telephone contact on your website. The person responsible for handling any enquiries from these contacts can quickly direct your supplier to the appropriate person.
Furthermore, any payment problems noticed can be reviewed for system correction and spam contacts dealt with as appropriate.
Therefore to parapharse my normal final statement - may your Accounts Payable mistakes be returned quickly in cash today rather than at some time in the future - if at all.
Kim Radok
