Certainly, Accounts Payable (AP) is considered as an important part of any organization. An effective AP department can establish positive vendor relationships, flexible payment terms and effective cashflow. However, there are a few major pain points your AP department is experiencing. Organizations can benefit when you address the key issues:
Sending invoices to AP department for review can be challenging. Managing the varying volume of invoices can be daunting. There is too much room for invoices to go missing. Eliminating the burden of handling paper and processing invoices electronically can significantly improve timelines and reduces lost invoices.
Relying on manual AP processes increases the turnaround time. Manually processing invoices require individual review, resulting in more turnaround time. Accounts payable software pushes the invoices into the system, so that no keying or reconciliation of the data is required. Your staff has to review only exceptions, so they’ll have time to review better.
As your company grows, it is important to keep all your AP information at a centralized location. Not centralizing your accounting processes will make it easy for duplicate payments to slip through the cracks. Processing invoices through a single, shared system strengthens internal controls. Also, centralizing the data will facilitate easy access to the invoice data for everyone.
AP department handles money leaving the company, so it can be a prime target for fraudsters. Fraud can be combated through a system that can automatically perform matching mechanism. Matching mechanisms makes it easy for you to keep track of invoice information and helps you prevent fraud completely.
AP department has to spend time in keeping information accurate and up-to-date. Poor data capture requires AP department to spend long hours correcting documents in the system. Even with optical character recognition technology, businesses struggle to record information accurately. Using a combination of OCR with review can ensure data accuracy.
Streamlining accounts payable processes are difficult, but the benefits it brings are many. With automation, internal process improvement, and team co-ordination, AP department can be transformed into more efficient unit.
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