Today, accounts payable is not just responsible for making payments, in fact, they forecast cash flow, streamline payment processes, track supplier payments and manage different payment channels. The larger the company grows, the more responsibilities the accounts payable department has to handle. Automated accounts payable (AP) software will help you better deal with challenges AP managers face.
Inefficient Invoice Processing
Everyone wants things to be done fast and if the processing system isn’t fast enough, you will end up making late payments. This will not only cost you money but also damages relationships with vendors. Automation makes invoice processing more efficient and the systems will automatically match invoices to purchase orders and track them so the invoices can get paid on time. Automating the system makes the process easy to adjust custom standardization and redefine business rules.
It is inevitable to make human errors when working with manual AP system. Inaccurate data will not only slow down processing but also makes it harder to meet deadlines and audits. AP automation provides increased control and visibility while allowing you to capture information from electronic invoices. Capturing data using automated AP software ensure 99% accuracy on every invoice.
Managing Different Channels
AP department face increasing pressures from management, vendors and other staff. Generally, you will get invoices on paper and you pay them through the checks. With AP software, payments can be made through ACH payments or direct deposit. Make sure your department can process incoming invoices and make payments through the supplier’s preferred method.
Automation maintains invoices in a centralized location so they can be processed the same way irrespective of how you receive them. Above all, accounts payable department with a self-service portal will save you time by allowing suppliers log-in to see their invoice status.
The software you choose should be user-friendly and help your AP department overcome the challenges you are facing. If you are not having a modernized, automated AP solution, you’ll need to overhaul the current process.