Accounts Payable Matching Process: Optimizing Operational Performance Through Accounts Payable Automation Software
Accounts Payable Matching Process
In todays digital-first economy, financial executives are increasingly turning to software to improve operational performance. In particular, the time-consuming task of accounts payable (AP) processing presents an opportunity to increase efficiency. By using accounts payable automation software, organizations can realize numerous practical benefits.
The goal of accounts payable automation software is to match each invoice with the corresponding purchase order (PO). This is no small task, as manually reconciling invoices and purchase orders is time-consuming and data-heavy process. However, with the help of accounts payable automation software, executives can streamline the process and reduce errors, as automated solutions are capable of handling thousands of PO/invoice matches in minutes.
One of the key elements in AP automation is the acronym T.E.A.M.: touchless entry, elimination of the need for manual data entry, automation of the matching process, and maximum visibility for improved process oversight. good accounts payable automation system should provide maximum support for these four key principles, helping to deliver significant time-savings for the accounting office.
Touchless entry is about significantly reducing the amount of manual data entry that has to be done upon invoice receipt. By capturing as much of the data as possible electronically, from email attachments to images of paper documents, executives can save hours of manual data entry. Furthermore, modern OCR technology can recognize words and patterns in the document images, adding to the automation capabilities of the software.
By eliminating the need for manual data entry, the software provides time-effective way to reconcile purchase orders and invoices, offering robust set of features to automate the matching process and reduce the risk of errors. For example, advanced algorithms can automatically match standard transactions, while rules and logic functions can extend the AP automation across rates, currencies, and other businesspecific variables. Additionally, users can add formulae, folder structures, and custom business rules to the matching process for maximum discretion.
Finally, visibility is critical component of accounts payable automation software. Automated dashboards and exception-handling methodologies help ensure that the entire process is accurately captured. Key indicators like turnaround time and accounts payable work-in-progress can be tracked over time, and reports on open invoices can be used to ensure timely payments.
Overall, accounts payable automation software offers executives cost-effective, time-saving solution for matching purchase orders and invoices. Unlike manual processes, which often take hours and can lead to costly mistakes, automated solutions can save money and time while increasing accuracy and reducing the risk of errors. it is an invaluable tool for C-suite executives looking to optimize operational performance and reduce costs.
