Miraculous Accounts Payable(AP) Process Improvement Ideas

In today’s business environment when enterprises are at a tight-edged competition, the need to do more with less has become the highest thought of strategies. Each business aims at yielding maximum ROI with the least minimum investment (accounts payable) they can do.

Do you know high accounts payable reflect greater liabilities on the business? An average of 48% of businesses tends to make 68% fewer profits because almost 62 per cent of their ROI go to the unattended accounts payable, as per studies.

You must be wondering where your accounts payable management went wrong when it seems to be carefully managed? Here are the common mistakes you must be committing unintentionally in your accounts payable management:

• Failing to issue purchase orders
• Not consciously matching delivered items with contractual terms
• Lack of visibility into vendor payments
• Lack of operational efficiencies in accounts payable management

List of the ideas for accounts payable process(AP process) improvement for invoice processing are summarized below:

1. Payments

• Accounts payable process(AP process) improvement can eliminate manual check requests from the payroll.
• Improve vendor relationships and cut costs by sending payments online
• Stretch payment dates to quarterly

2. Invoice Processing

• 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.

3. Technology

• 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 Invoice Processing

Take a look at the definite improvements made in the account payable process. The relative improvements can be made in indefinite areas for the perfect workflow.

Here are the steps you can follow for accounts payable process improvement:

Tip 1: Centralize Accounts Payable Process Management:

1. Eliminate paper invoices and accept only online invoices.
2. Integrate into your system invoicing and accounts payable software to eliminate piles of paper and centralize payable management. This simple integration will increase visibility into entire accounts receivable and accounts payable management for your business.

Tip 2: Take the leap towards paper-less invoicing solutions:

1. Opt for a centralized scanning solution for vendors who do not supply electronic invoices. This would help to turn images into computer-readable text.
2. Perform all the data entries and functions (online & offline) automatically with Invoicera to improve your AP process.

Tip 3: Set up payable reminders

Always take a proactive approach in managing accounts payable. Forgetting information and tasks is a very common human tendency. By setting up reminders one can easily take care of bills and take steps towards accounts payable process(AP 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 4: Consciously budget your expenses

Proactively creating business budgets can help you improve the 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 5: Streamline workflow with the automation of Approval

1. Quickly approve/get approved received invoices to streamline payments. Quick approvals and payments avoid late payments.
2. Manage approval assignments, general ledger posting, workflow, approval and review or notifications.

In The End

Out of cluttered clouds, your mind is now free to think about the best possible ways for you to manage accounts payables. Invoicera with its artificial intelligence ensures smoother Accounts payable management and tracking. A quick sneak peeks into how Invoicera, the accounts receivable software makes management easy:

• Eliminate excessive data entry into accounts payable process improvement(AP process).
• View the progress of invoices with an 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.

SOURCE : Miraculous Accounts Payable(AP) Process Improvement Ideas