How the accounts payable department improves the business bottom line is a billion dollar question for business owners. Besides audits, fraud prevention, and vendor management, there are certain things that make organizations top performing. The following are the best AP practices that drive business bottom lines.
Minimizing Over payment or Erroneous Payments
In the procure-to-pay cycle, duplicate payments, pricing errors and missed discounts are some concerns that have a significant impact on the business bottom line. Unfortunately, enterprise resource planning software cannot overcome these challenges due to its inability of integrating with different systems. Today, right from data extraction to continuous monitoring, everything can take place in the cloud. Accounts payable software can analyze data and provide reports that can be reviewed on a regular basis, which can avoid over payments.
While conducting audits, information gathered can create valuable data insights that can be helpful while making decisions. The AP department may find particular contacts that respond quickly to payment requests. Predictive analytics make you understand about the supplier patterns so that you can expect better results over the course of an audit.
Preventing Fraud in Supply Chain Management
New legislation and increasing regulationsare making the supplier risk environment more complicated than before. Today, accounts payable software allows you to weed out fraudulent vendors during the on boarding process. Having a good fraud detection system will protect your company from suspicious vendor activities. Your AP software should prevent supplier fraud and enable you to adopt a zero-tolerance policy against fraud. Additionally, you should not give the procure-to-pay responsibility to a single individual. Multiple functions such as approving invoice payments, supplier verification and so forth should be handled to various persons in the department.
Reducing Costs via Integrated Systems
Minimizing costs is an ideal way AP departments drive their company’s bottom line. Over the last couple of years, AP pros are picking the best solutions to improve efficiency. Adding new solutions to the company will increase complexity; therefore you have to spend a lot of time in making applications talk to each other. Hence, getting solutions that integrate with your ERP software is the best solution to fight fraud and reduce costs.
No more is AP just about managing invoices. By implementing the right solution, you will find your AP department more efficiently that you never expected and the value they bring adds invaluable asset to your company.