Your accounts payable department is responsible for vendor invoice processing, approval, and payment. Within these functions, there are several different workflows, and to manage these workflows effectively, you need to be equipped with practical ideas. This guide contains some nuggets of wisdom to help you manage your accounts payable workflows for better performance, increased operational efficiency, and a better bottom line.
“Accounts payable invoice matching” refers to the comparison of prices, quantities, terms, and other relevant information appearing on an invoice with the information on the purchase order (PO), the goods received note (GRN), and the acceptance or inspection documents. It is usually performed for goods and services ordered through a PO, and is one of the basic steps in invoice processing, necessary for an invoice to be deemed eligible for payment.
In automating your accounts payable processes, which steps can you take to make sure you get the best returns on your investment? What are the most effective strategies that will help your team get the most out of the automation tool you choose? What are the best practices to follow in implementing and using it?
Accounts payable is particularly a document-heavy department. Whether you’re dealing with vendors or upper management, there are usually tons of documents to process and approve, like vendor invoices, reports, purchase orders, and so on.
To work efficiently, you need to be able to manage these documents well. Otherwise you’ll be faced with a business process that holds you back instead of propelling you forward.
Your organization’s accounts payable (AP) operations can have considerable impact on your overall success. This means you should follow modern business practices in order to make a mark and stay ahead.
One such practice is to pay your vendors accurately and on time. Late payments can result in a number of problems, including:
Are you still dependent upon a manual system to process your vendor invoices? If so, not only does it mean your system is obsolete, but you’re simultaneously putting yourself and your business in a disadvantaged position.
Here’s the truth about manual invoice processing: this outdated methodology has been found to have over 101 weaknesses, and all of them contribute to a shockingly poor invoice processing experience. Chances are that if you’re still processing your vendor invoices manually, you are encountering these classic problems and harming your productivity. Below are some of the drawbacks associated with manual invoice processing techniques, an explanation of how such techniques have been undermining your accounts payable (AP) processes, and why you need to ditch them ASAP.
In automating your accounts payable (AP) processes, it’s essential that you track some key metrics. In this post, we’ll explain why this is important, which accounts payable metrics to track, and how to use each one to improve your invoice processing system.
In the end, you should be able to to straighten out your AP workflows and optimize your invoice processes considerably. Let’s get to it.
There’s been a lot of talk lately about the power of workflow automation and what it can do for a business. However, some companies are reluctant to embrace this phenomenon.
Why would an innovative organization in the 21st century ignore a concept that’s easy to implement and yields tangible advantages? The answer has to do with common misconceptions and myths that have arisen over time.
Have you ever wished you could cut back on your invoice processing costs without sacrificing efficiency and work quality? A study carried out in the United States showed that an average company spends as much as $25 pushing one invoice through a paper-based system. At the same time, half of all companies take between five and 15 days to process a single invoice when they do so manually.
The main responsibility of accounts payable (AP) departments is to ensure all valid invoices from vendors are approved, processed, and paid.
That sounds pretty simple, doesn’t it?
Well, in practice, it’s not always so.
From arrival to payment, invoices often go through several processes depending on an organization’s business rules. These processes can be tasking, especially if the company has a whole slew of invoices to process.
In a previous post, we took you through a step-by-step process for automating your accounts payable (AP) workflows. One of the steps is to choose software that best meets your AP department’s needs. Today, we’d be showing you the exact, final things to consider before making your choice of workflow automation software.
We’ve already given you 15 reasons why you should automate your accounts payable (AP) processes. It saves time, reduces costs, leaves your employees free to do the more-pressing tasks they need to tend to, and so on.
In today’s post, we’ll take you through the step-by-step process to go from a paper-based accounts payable invoice processing to a fully automated system. It’ll go off without a hitch once it’s set up, but first, let’s start with the basics.
Duplicate payment is a major financial drains facing organizations today.
When you accidentally pay the same invoice twice, you’re of course tossing money away unnecessarily. This eats into your margins and inhibits your company’s financial progress. Who could ever stand for that?
In its 2014 annual report, the US Government Accountability Office (GAO) disclosed that it was involved in preventing such improper payments of $124.7 billion within just 22 federal agencies. The report is government-specific, but it tells the same story for business.
So you’ve decided to go paperless, and want to give accounts payable (AP) workflow automation a try, right?
Well, this means you need a software tool that can be easily adapted to your organization’s unique needs. The software should be full of relevant features, and it ought to even have a few you didn’t know you wanted.
Accounts payable invoice processing may not be the most exciting task in the world, but it remains an essential one for every organization that wants to pay its vendors.
Without managing your accounts payable (AP) methodology effectively, you can too easily lose value on your team’s effort, mistakenly cost the company literal money, or even damage your professional relationships.
Getting a team to work together efficiently can prove a challenge, especially if the team’s task is no fun and no one wants to finish it.
An inefficient team can cause unnecessary waste, missed delivery dates, and lots of unnecessary stress.
As a CFO who knows that invoice processing is hardly a fun task, how can you get your accounts payable (AP) team to work together productively, make the best use of their resources, and deliver quality results more quickly?
It’s time to talk about optimizing one of the least-sexy business processes out there: invoice approval.
When invoices are processed effectively, it directly yields a positive impact on turnaround time, operational efficiency, and your overall bottom line.
Traditionally, invoices are processed and approved manually, but it’s important to understand that there’s a better way to do this in the 21st century and it’s automation.
If you make regular purchases to facilitate running your business, chances are you have some vendors you have to pay.
You need an invoice processing system to pay your vendors efficiently.
“Invoice processing system” refers to everything that goes into the processing of invoices — the human input, the tools, and the process that takes you from capture to payment.
