You Need a Simple AP Close Process, and here it is!
Imagine if all of your vendor relationships were seamless, every invoice was paid timely, and that data flowed exactly where you had planned on the financial statements.
Accounts payable pros are often thrown into the job with little to no training, yet they are given the responsibility of making all of that happen.
So vendor relationships are strained. There are missed payments, double booked invoices, and late fees. The leaders feel frustrated. The team feels stressed and underappreciated. There is turnover.
Someone new is thrown in, possibly with lots of other responsibilities at the hotel and no time to unravel the mess that has already become of the hotel’s AP.
This week we’re talking about the important of Accounts Payable and how to stop this frustrating cycle.
We’ve put together a Hotel AP training that will cover, the role of AP and how it impacts the bottom line of the hotel, our best AP scheduling system, and the key elements you must know to enter AP accurately.
If you’d like to grab this training for your team, learn more HERE.
For now though, let’s go over AP close dates. This is one AP element that causes a lot of frustration.
We recently did a project for a sweet man named Raj. He really wanted to do a better job of reviewing the financial statements for his hotels, but he said he couldn’t because the history kept changing.
The problem was, his AP team had no AP close process in place. Anytime they got invoices in for previous months, they just posted them in that month. So he was right, the financial statements were never complete. The previous months were always changing.
They were like shifting sand under his feet. Aside from his inability to see how the hotels were doing, he was getting in hot water with the bank. He would send them the Income Statement each month, and then more invoices would be posted in that month and the numbers they got weren’t accurate anymore!
This was quite a stressor and all Raj needed, was to have an AP close date in place.
Now his team plans to close AP on the 5th of every month, Raj can review each month’s performance and send his financials to the bank with confidence.
Learning how to set and communicate the AP close date is one of 11 key elements we go over in our basics of hotel AP training.
It is so important for the AP team to understand every element, because they are all impacting the hotel’s bottom line and your team’s ability to win!
So whether you invest in our AP training or develop your own, your tip for the week is to make sure your AP team understands their part in the success of the organization and has the training needed to do the job well!