Have you checked in with your accounts payable department lately? Maybe you work in that department, or even head it up. Either way, you know how many plates the accounting department has to keep spinning at once. You might also recognize the strain an inefficient accounts payable process can place on operations.
That’s because at any given time, the AP team is dealing with multiple accounts. These include payments due to suppliers and other creditors. These can be both short- and long-term in nature. Payroll. Business income tax. Building lease payments and retirement benefits.
What’s Taking So Long!?
Issues managing accounts payable in a timely, efficient manner, can lead to time and money loss, not to mention a stunted and frustrated accounting department. Whether your business uses account payable software or not, here are three hidden causes that make the AP team’s job difficult.
Too Many Steps – Without the right accounts payable automation, logging accounts payable into the ERP system can take upwards of ten steps. Maybe more. That’s valuable time the accounting team could be spending elsewhere (such as serving clients).
Personnel Bottleneck – Some resources recommend that one person should head up accounts payable; elsewhere, a team approach is gospel. The right answer will depend. It is important to assign accounting personnel to AP based on the size, nature, and complexion of your business. Get this wrong can create a bottleneck that holds up accounts payable.
Ignoring the Data – The invoices keep coming, the payments keep going out; but how organized is your data analysis? An organized data collection and review process can reveal costly inefficiencies in your accounts payable processes. We recommend regular data reviews to look for trends in your accounts payable.
Better AP Requires Better Accounts Payable Automation
When businesses examine these three problem areas, a common thread is likely to emerge: dated systems and inefficient processes. Sure, you have digital processes in place, including accounts payable automation that handless and even helps eliminate human error.
But is it good enough?
What if you could automatically reconcile bills in your accounting system? More comprehensive accounts payable automation can save time, allowing you to serve more clients. No more working late hours just to stay afloat with accounts payable.