Accounts payable process refers to a set of practices, procedures, and policies set by a company in order to manage its trade credit purchases. The account payable of the company can be found in its short-term liabilities section of the balance sheet. It mostly consists of Accounts Payable of the short-term financing, raw material and inventory purchases, accrued expenses, and other important short-term operations.
Therefore, choosing the right AP process is important. The decision, here, lies on the basis of several parameters like features, usability, customer support and more. Accounts payable process improvement makes handling finances stress free and affirms your business with the productive approach. It is the right time to eliminate manual processes and make your accounting and invoicing accurate and precise by shifting towards online account management software.
The failure in the AP process can hamper the company’s ability to process invoices in a timely manner.
Here are some common mistakes in the AP process:
a) When you fail to issue purchase orders.
b) If the order deliveries do not match the contractual term.
c) Lack of processes to prevent under and overpayments, duplicate or missed payments
d) Lack of quality, operational efficiencies, and corporate finance.
Here are the steps you can follow for accounts payable process improvement:
#Tip 1: Accept electronic invoices:
a) Eliminate paper invoices and accept only electronic invoices.
b) Certain systems today achieve electronic invoices without expensive EDI infrastructure.
#Tip 2: Centralize effective data and eliminate data entry:
a) Centralized scanning solutions are now available for those vendors who do not supply electronic invoices. This would help to turn images into the computer readable text.
b) Perform all the data and functions automatically with invoicera and improve your AP process.
#Tip 3: Streamline workflow with automation
a) Work on the more efficient way of invoicing.
b) Manage approval assignments, general ledger posting, workflow, approval and review or notifications.
#Tip 4: To simplify and standardize
a) Organize the functions with standardized and streamlined accounts payable process.
b) Receive accurate payments much more quickly.
#Tip 5: Set up reminders
Always take a proactive approach in managing accounts payable. Forgetting information and tasks in a very common human tendency. By setting up reminders one can easily take care of bills and take steps towards accounts payable process improvement.
Reminders help you anticipate expenses. Use invoicera to manage invoice due dates and set up alerts that automatically let you know when a due date is approaching.
#Tip 6: Budget your expenses
Proactively creating business budgets can help you improve AP process and avoid late payments. Use your account payables sheet in the dashboard to keep yourself updated about all the bills that you need to pay. A clear record of every penny that needs to be paid makes sure you don’t spend extra on late payments and fines.
#Tip 7: expand your cash reserve
It is not always the happy days for business. You might have to face some slow days too. In the days when your cash flow is little too slow, you might need to open your bags of cash reserve and make keep your AP process on track.
List of the ideas for accounts payable process improvement for invoice processing are summarized below:
- Avoid vendor going into a debit balance.
- Set a checklist to track the recurring invoices.
- Send certain processes to a strategic offshore partner. This might reduce cycle time, errors and costs and also strengthen the internal controls.
- Pay invoices according to vendor terms.
- Reduce the time to handle an invoice.
- Eliminate the type of floating invoices and target to send AP first.
Similarly, improvement is needed for the AP process for different sections in payments, travel, and entertainment, technology, analysis, and planning, cost control, working with purchasing, staff management, and customer relations.
- Accounts payable process improvement can eliminate manual check request from the payroll.
- Improve vendor relationships and cut costs by sending payments online
- Stretch payment dates to quarterly
- Upgrade AP systems functionality
- Get a system that calculates due dates
- Eliminate file cabinets and route electronically
- Develop more usable reports with a definite team
Take a look at the definite improvements made in account payable process. The relative improvements can be made indefinite areas for the perfect workflow.
- Eliminate excessive data entry into accounts payable process improvement.
- View the progress of invoices with the easy reduction of time.
- It provides centralized access to invoice data.
- Get faster automation of approvals.
- Match with the relevant documents.
- Avail 24*7 customer service for a convenient solution online.
TRUST INVOICERA FOR ALL YOUR ACCOUNTS PAYABLE PROCESS REQUIREMENTS:
Invoicera is one of the most powerful online invoicing software. With more than 13 years in the online invoicing industry, it has been serving more than 3 million businesses. Supported by almost every industry, Invoicera has its customized set of tools for small businesses, enterprises, and freelancers. The support of more than 30 online payment gateways in the software makes it unique and more reliable for businesses commencing their activities worldwide. The mega dashboard in Invoicera enables you to have an efficient accounts payable process for effective management of accounts payable. CUSTOMISE, CREATE AND INVOICE ON THE GO WITH INVOICERA’S MOBILE APP AVAILABLE FOR BOTH ANDROID AND IOS.