Deal with ordeals and help the accounts payable departments to process invoices
As we all know, the accounts payable department takes charge of processing and checking transactions between the company and its suppliers. This means the accounts payable department has to make sure that all invoices from suppliers are approved, handled and paid.
Processing invoices requires accountants to record pertinent data from the invoice and input it into the company’s financial system. After this step is completed, the invoices go through each respective department in the company in order to be paid.
Processing invoices requires accountants to record pertinent data from the invoice and input it into the company’s financial system. After this step is completed, the invoices go through each respective department in the company in order to be paid.
This process is straightforward but can become cumbersome, especially if your company has tons of invoices that require handling every day. Below are 3 normal ordeals that an accounts payable department has to overcome:
1. Lack of time
Accountants always have to work as fast as possible to meet vendor deadlines and juggle available cash. Also, payables must be routed to conform with prescribed business processes, automatically and instantaneously. As a result, finding ways to save time is s demanding challenge for any organization.
2. Waste money
You have tons of work to do every day and making mistakes is inevitable. You may find yourself paying an invoice twice, overpaying an invoice or making multiple copies of each document. Also, you may be faced with late payments incurring interest charges or fees because someone on staff dropped the ball and overlooked a due date on an invoice. These problems can lead to wasting thousands of dollars in your company’s budget each year.
3. Error and risks of error
In a paper environment, large volumes of invoices threaten accountants with the potential for human error. In an accounts payable department, a great deal of time is spent on manual data entry. This may result in mistakes and delays between the time when an invoice is received, matched, approved and accessed in the accounting system. Some invoices can be paid twice as mentioned above. Some can be misfiled and unsearchable when needed.
AP automation was designed to resolve all problems listed above (broad definition here AP Automation and Invoice Processing ) In addition, it can benefit any organization with other key advantages as following:
• Reduce Physical Storage Space
• Streamline approval: enable faster decision making and greater information security
• Eliminate paper and going paperless: make information available instantly
• Maximize productivity: process, analyze, evaluate and improve functionality
• Submit and audit more easily: prove payments in a snap
So now, you have a new tool to deal with ordeals in accounts payable department with AP automation. Contact us for further information.
Keywords: SharePoint Imaging, Invoice processing automation, signature capture
Thank you for sharing nice article about what ordeals do account payable department. They explained very well about account receivable and it is very helpful to most of the peoples.
ReplyDeleteAccounts Payable And Receivable
Finance And Accounting Outsourcing
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