New AFP Guide Focuses on Creating a Payables Strategy
- By Staff Writers
- Published: 1/7/2014
A well-articulated strategy can optimize the value of the payables process for a company as a whole, rather than for particular business lines only. Such a strategy will also guide treasury employees in their daily functions to ensure that their behavior is consistent with the company’s expectations.
The guide begins by looking at the goals and drivers of a payables policy, such as minimizing costs, ensuring that purchases are made from preferred and approved vendors, and using payment types and channels that are consistent with trading partner agreements. Next, the guide examines how to create a payments policy and effectively communicate it across the organization. The guide then delves into payables strategy implementation and many important factors to consider, including the regulatory framework and stakeholders.
The new guide is the sixth in AFP’s Payments Decision Guide series, and relates to previous guides published in 2013 and 2012. The AFP Payments Decision Guides as a whole are intended as a portfolio of guides on related topics that, taken together, offer a company assistance in setting its payments goals and establishing a comprehensive approach to payables that ensures they contribute to a company meeting, or exceeding, its business goals.
AFP’s next Payments Decision Guide will be Payables Strategy, Part 2, which will build on topics covered in Part 1 by looking forward to evolving issues and payables.
Download the AFP Payments Decision Guide to Creating a Payables Strategy, Part I here.
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