Six Ways to Save Money With Accounts Payable Invoice Processing

There are six different ways to save money when it comes to accounts payable invoice processing. Many businesses still use manual processes, including transferring documents from one system to another and reviewing invoices manually. These methods can cause delays in processing invoices and paying vendors. This can lead to a number of negative consequences, including late delivery of ordered items, poor relationships with vendors, and fees and fines. Not to mention the potential for three-way matching errors and discrepancies, which can lead to costly delays.

Using a Spend Management Platform 

When it comes to automating your accounts payable invoice processing, automation will make the entire process faster, more accurate, and more reliable. Using a spend management platform can make the whole process seamless and automated. The Supplier Invoices module of Webexpenses can help your company manage daily invoices. You can easily sort invoices by category and send reminders to staff when they are due. Even better, it will help you avoid mistakes in data entry by automatically capturing invoice data.

Categorise Your Invoice

Invoice processing should always start with the receipt of the invoice. Each invoice is processed according to a specific process. Invoices need to reflect what the company ordered and received and be taxed appropriately. It is critical that all information on the invoice is correct, including the amount and the unit cost. Once an invoice has been correctly categorised, a responsible person must approve it by signing it. Depending on the organisation, the approval process may differ from one organisation to another.

Process Invoices On Time

Once the invoice is verified, it passes to an accounts payable manager. The accounts payable manager enters the invoice into the general ledger system and schedules payment. When the time comes to pay, it is important that the account payable manager knows the exact date of payment, as it is often due 30 days after receipt. Sometimes, suppliers will offer an early payment discount, such as "2/10 net 30." In these cases, the account payable manager will process the invoices and pass them to the top financial officer, which is typically the controller.

Automate Your AP Process

Businesses cannot afford to waste valuable resources on manual processes. Instead, they should implement automated accounts payable invoice processing solutions. With the right technology, AP departments can automate their processes to save time and money. Whether a business uses a software solution or a manual process, the benefits are vast. Accounting departments will find it easy to manage and monitor their costs as well. A software program that helps them automate their accounting processes can improve the process for all companies.

Follow Strict Procedure for AP Process

AP departments must follow strict procedures. This will prevent double payments and fraudulent invoices. The purpose of this cycle is to prevent duplicate payments and fraudulent invoices. Bills help to trace the quantity of goods purchased and confirm the validity of the bill. They must match the purchase order. Additionally, the vendor should have a proper authorisation. A good software solution should also have a comprehensive accounting software suite. The AP team should be able to make decisions quickly.

Why Do You Need Software for AP Processing?

Automation is the best way to eliminate human errors and increase the speed of accounts payable. It eliminates the need for manual data entry and allows for a more accurate and efficient process. An AP system should include a powerful computer system that can handle multiple tasks and can automate every part of the process. Further, automated AP systems can be tailored to the needs of specific businesses. For example, if a company needs to pay a vendor, it should have a central AP department that specialises in these services.

AP automation software automates the accounts payable process. The software can help companies choose the most advantageous payment terms and timing for invoices. It can also allow AP staff to adjust payments to take advantage of early payment discounts and defer payment deadlines. AP automation can significantly reduce expenses and increase the efficiency of accounts payable departments. There are many benefits to using an automated system. These programs can reduce the amount of time it takes to process invoices, and make processes run more smoothly.

Summary

Accounts payable invoice processing doesn't have to be a daunting task. In fact, with the right tools and procedures in place, it can be a breeze. At TeamBlueSky, we provide spend management software that helps organisations automate their AP process and save money. If you're interested in learning more about our products or services, please don't hesitate to get in touch. We would be happy to help you find the perfect solution for your business needs.