The accounts payable process depends completely upon the trust between an organization and its suppliers. The right partners can play an important role in improving the overall process. The failure in the accounts payable processes can hamper the company’s ability to process invoices in a timely manner.
Here are some common mistakes in the accounts payable process:
a) When you fail to issue purchase orders.
b) If the order deliveries do not match contractual term.
c) Lack in processes to prevent under and overpayments, duplicate or missed payments
d) Lack of quality, operational efficiencies and corporate finance.
Besides, there are several ways to create an efficient accounts payable workflow.
Step 1: To accept electronic invoices:
a) Eliminate paper invoices and accept only electronic invoices.
b) Certain systems today achieve electronic invoices without expensive EDI infrastructure.
Step 2: To 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.
Step 3: To streamline workflow with automation
a) Work on more efficient way of invoicing.
b) Manage approval assignments, general ledger posting, workflow, approval and review or notifications.
Step 4: To simplify and standardize
a) Organize the functions with standardized and streamlined processes.
b) Receive accurate payments much more quickly.
List of the ideas to help improve account payable process for invoice processing are summarized below:
1. Avoid vendor going into a debit balance.
2. Set a checklist to track the recurring invoices.
3. Send certain processes to a strategic offshore partner. This might reduce cycle time, errors and costs and also strengthen the internal controls.
4. Pay invoices according to vendor terms.
5. Reduce the time to handle an invoice.
6. Eliminate the type of floating invoices and target to send AP first.
Similarly, improvement is needed for the account payable process for different sections in payments, travel, and entertainment, technology, analysis and planning, cost control, working with purchasing, staff management, and customer relations.
Related Post: Accounts Receivable and Payable Management
a) Manual check requests can be eliminated from the payroll
b) Improve vendor relationships and cut costs by sending payments online
c) Stretch payment dates to quarterly
a) Upgrade AP systems functionality
b) Get a system that calculates due dates
c) Eliminate file cabinets and route electronically
d) 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 in definite areas for the perfect workflow.
- Eliminate data entry
- View the progress of invoices with the easy reduction of time
- Provide 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
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