Choosing accounts payable software – 5 things you should look for
There are a number of accounts payable software solutions in the market. Choosing the best software requires you to consider many aspects. Of the many, the following are a few key features you should look for when choosing your AP solution:
Your software should support comprehensive reporting features so that the data presented in the report will help you quickly determine the charges incurred and let you figure out ways to avoid unnecessary costs in the future. Basic AP automation software should be able to create reports based on expense type, due date, payment date, period, and status. The system should also show which payments are made, processed, and yet to be cleared.
Your software should include controls to determine the authenticity of payments. Maintaining purchase orders with bills will help reduce errors and fraud. Your system should have the ability to eliminate unauthorized payments by reconciling invoices and purchase orders with the respective accounting entries.
All the transactions are a part of large business processes. Your software should deliver the payables ledger information regarding liabilities to the balance sheet. Purchase order integration is important as both accounts payable and purchase order processes benefit from mutual access to the vendor list. Integration helps identify which payments were made and are there to reconcile.
Multiple payment methods
Accounts payable solutions should support ACH payments. The benefit of using ACH payments is that it reduces the cost of printing & mailing checks and results in quick turnaround time in completing transactions.
Reporting functionality will differ between various solutions. Your accounts payable software should have the ability to customize fields, report using complex instructions, and create graphical reports. These features will drive efficiency in the processes and provide greater insight into business finance operations.