AP, from Always Problems to Anticipated Proficiency

To most, AP stands for Accounts Payable. It can stand for many things to many people. Some internal departments may feel AP stands for Always Problems. Our competitors will see a struggling AP department as a target for their Armor Piercing. I’ve worked in AP departments that are Always Partying because there’s an abondance of snacks everywhere. The fact is AP does many different types of jobs within one department and the group can be used as an All Purpose support to any project.  At the end of the day, if you have a well-oiled machine called AP, your Assets are Protected.

All odd acronyms aside, your company’s AP health is important. Everyone has heard that and not everyone retains it. That’s ok. AP’s health generally becomes clear when there is a problem. Just like your uncle Bernie who eats two burgers every afternoon for a snack, drinks a gallon of soda, and to his horror, mysteriously gains weight. Exercise and healthy nutrition is important to more than just your uncle.

Businesses solve customers’ problems for an agreed upon price. Whether it is providing a service or product, the business must ensure the customer’s need is served. In doing so, the business takes on liabilities or debt owed to vendors to fulfill the customer solution. These bills, liabilities, or debt is collected and monitored by an Accounts Payable team. This team or department is responsible for paying these bills in such a fashion as to ensure there is no fraudulent or inaccurate payments.

Doesn’t that sound like a sexy job?

I don’t wear stilettos but if AP was a person, I imagine they’d wear stilettos and pant suits every day. Their hair perfectly quaffed, defying gravity. The bag slung over their shoulder would be worn from the years of hard problems handed off haphazardly, all swiftly solved with grit and perseverance. Do you need a pen? AP brought extras. Forgot the presentation? AP has a backup. Bad breath? AP has a mint for that.

I’ve been in Accounts Payable for 10 years, and I’m hoping to use 2022 to write about what makes up a healthy and strong AP department. I hope you will join me in walking through subjects such as 1099s, vendors, fraud, and more! Let’s redefine your AP department character, so they can grow from being a disappointing Always Problems to an overwhelming Anticipated Proficiency.