These days, launching a new product or service involves in-depth analysis and planning. A successful strategy incorporates more than just the marketing department, from design to promotional campaigns. If you’re looking for a leg up on the competition, you might need to look to an unlikely ally. Incorporating accounts payable (AP) management into your go-to-market GTM strategy can help give you that creative edge. 

Blending Accounts Payable Management and GTM Strategy

First things first — what exactly are accounts payable and go-to-marketing strategy? Accounts payable refers to any account your company owes money to, typically vendors who supply products or services. GTM strategy is a common term for a plan that outlines how your company will market a product or service to your target audience. This plan can include data like the set price, advertising campaigns, and current market trends.

By working cross-functionally between AP and GTM strategy, teams can prioritize outgoing cash flow (paid invoices) and its direct influence on your marketing position. How? In most situations, vendors require payment before delivering their products or services. If a vendor withholds their products due to an unpaid invoice, that can affect whether or not the marketing team can move forward with the launch.

When your AP management enforces consistent processes, you’re better positioned to support GTM strategies. When these two teams work together, they can provide the necessary edge over fellow competitors.

How AP Management Positively Affects GTM Strategy

Ideally, your AP management will concentrate on optimizing procedures throughout every stage. Working strategically allows you to facilitate cash flow, build stronger relationships, and aid the GTM strategy.
Let’s look at how effective AP management can positively influence your GTM strategy. 

1. Leverage Technology

There’s no shortage of business management software in today’s technology-focused world. If you want something tailored to finance, like enterprise resource planning (ERP) finance software, there are plenty to choose from. You can also utilize full-scope platforms that provide financial reports and analysis, plus assist with general account management, invoicing, and payments. The great thing about business management platforms is many tasks can be automated, freeing up time you can spend elsewhere.

Using current technology ensures you’re moving and growing with the market. Companies typically build new software with the latest trends in mind, so using modern tools and software makes it more likely you’ll remain relevant to your audience. 

2. Streamline Processes

Simplifying procedures helps your team to work more efficiently.
With so many moving parts, it’s easy for tasks and data to fall through the cracks. Designating specific tasks to team members is one way to minimize individual workload and avoid mistakes. As mentioned above, using business management software can also decrease errors by automating tasks.

Streamlining your workflow reduces mistakes while simultaneously improving productivity. As they say, the goal is to work smarter, not harder. 

3. Enhance Internal Controls

The nature of working with AP management and finances involves some risk. Fraud and financial scams come with the territory. If there is any suspicious activity going on, this can negatively affect the GTM strategy and the rollout of the upcoming product or service.

Not only that, if a pattern of fraudulent activity emerges, this can set a bad precedent with current and future vendors. No one wants to associate themselves with a company plagued by fraud and scams. By creating internal controls and policies if fraudulent activity is suspected, you’re better prepared to address the situation.
These are a few ways to improve your internal controls and governing policies:

• Limiting authorized access to your accounting systems.
• Conducting regular audits and system checks.
• Set approval limits for large purchases. 

4. Increase Data Accuracy

AP management relies on collecting and processing data. Unfortunately, people make mistakes, and errors will undoubtedly occur. These errors can lead to delayed product launches and misuse of information in the GTM strategy, ultimately costing your business money.

You can use software to automatically collect and sort accounting tasks like invoice scanning and verification. You may need to manually perform other tasks like confirming prices, discounts, and payment terms. It’s a good idea to cross-reference this information, too. Keeping accurate data puts you in a better cash flow position to avoid errors, payment hold-ups, or fraud. 

5. Improve Vendor Relationships

As with any business, maintaining a positive working relationship with your vendors is key. Paying vendors on time and having open communication can significantly improve your relationship. It also encourages them to continue the partnership since they know it’s a good investment for their company.

It’s good practice to meet your vendors where they are and provide the best possible experience you can. This relationship-building may mean allowing flexible payment terms or using direct payment methods. And, of course, paying them on time is important, if not early. If your vendors are excited to work with you, they will likely provide excellent service.

In the end, a healthy working relationship helps your business sustain growth. 

How to Incorporate AP Management with GTM Strategy

The natural progression from accounts payable to the marketing stage isn’t as far-reaching as you may think. Without a strong AP management system — enforcing accurate data collection and paid invoices — the marketing team will have difficulty successfully moving the needle toward the launch.

To start, consider collaborating cross-functionally. Your tech stack most likely includes tools and software with the necessary data both teams need to support one another. Providing access and transparency across teams lessens back-and-forth communication and saves you time.

When your teams work together, you can create an action plan for your GTM strategy from beginning to end. This action plan details each phase or step of the plan, from vendor acquisition to paid invoices leading up to marketing and sales responsibilities. Again, sharing this information keeps everyone informed and on the same page.

Once you decide and allocate responsibilities, implement automation for repeated tasks. This automation enables a more efficient workflow that can help support your team’s market entry and launch. The more productive and efficient you are in collecting data and completing tasks, the better your position will be to meet your goals by your deadline. 

A New Approach to GTM Strategy

Combining efforts between your AP management and marketing team can greatly improve your GTM strategy. Working cross-functionally encourages collaboration, transparency, and efficiency.
While it may be an unconventional approach to launching a new product or service, it can also set you apart from your competition and provide the creative edge you need to succeed.