Any Accounts Payable team will want to make sure that it works as effectively as possible to reduce costs. This can be done by making improvements to methods.
However, it is not just a case of implementing improvements for the sake of it because they have to be considered with a methodical approach. What’s more, these improvements can be achieved through the use of technology but the technologies have to bring with them impressive benefits at a low cost.
So, lets take a look at some of the most effective solutions out there.
It’s really important that Accounts Payable teams work efficiently and this is true when it comes to accessing invoices. By scanning and indexing invoices, it makes it easier and faster to access them when they are required. Furthermore, this is an easy change to make but one that will prove highly effective. Instead of spending time looking for hard coping, invoices can be scanned and linked to your accounting system. This will increase speed and it will save time, all of which will provide you with the first step towards automation and cost reduction.
The Importance of Analysis
Using data and metrics, Accounts Payable managers and leaders can use this data to produce information from the Accounts ledger, transactions and master vendor file that is actionable and usable. This goes one step further than simply recording metrics because it is more detailed. This means that it will involve trend analysis and information on a wider scale that can help to bring in improvements.
This can include the likes of supplier queries, error resolution analysis and team analysis. All of the information is then collated as a way of identifying areas that require improvement. These improvements can lead to faster processes, and will in turn reduce costs.
Implement Purchase Order Processing Systems
Purchase orders make it easier to manage orders and the way in which they are processed. As a result, many businesses are now choosing to install purchase order systems while also expecting purchase orders to be used on all invoices. As setting up orders and processing them is time-consuming, this trend is streamlining processes and making things simpler.
However, you have to look at the benefits as they mean that errors can be reduced as it will increase the likelihood of checking as it increases cross-checking. Furthermore, it means that you can gain more insight into vendor spending too, giving you more scope to manage processes more effectively.
Despite this, as Accounts Payable is further along the process than procurement, there are ways in which this process can face challenges. It could result in incorrect information being passed through the system, much of which is unchecked and that leads to errors. However, a purchase order system is a crucial tool but it does require procurement and Accounts Payable to work closely, as this will allow the monitoring of transactions while also improving processes where required.
So, technology clearly has a vital role to play and there are many solutions available for Accounts Payable to take advantage of.