Evaluating Two-Way Matching For Accounts Payables
What Is Two Way Matching In Accounts Payables
Matching payables with invoices, purchase orders, and other supporting documents is an integral part of accounts payable management. As payment volumes grow, manual processes tend to be strained, leading to delays in identifying mismatches and billing errors. two-way matching process simplifies the Accounts Payables (AP) process, making it isimpler to facilitate large-scale payments. This article discusses how C-Suite executives can make informed decisions in evaluating two-way matching for Accounts Payables with the help of automated solutions.
To begin with, two-way matching involves comparing data from the purchase order, receipt of goods or services, and invoice. This helps to ensure that all three documents match, eliminating the burden of manually comparing each item one by one. Automated solutions enable accounts payable departments to perform the entire matching process quickly, accurately, and without any errors.
Organizations that implement two-way matching experience several benefits. Firstly, automated solutions enable them to create single repository of all invoices and payment documents, reducing the amount of manual effort required to manage the accounts payable cycle. As all documents can be retrieved and searched easily using basic keywords, the time required to review and approve invoices is drastically reduced. Secondly, automated solutions help to eliminate the risk of duplicate payments and fraudulent invoices, thus saving large amounts of money that would have been lost due to overpayments. By streamlining the process and enforcing multiple levels of approvals, automated solutions enable organizations to maintain complete audit trail and make corrections quickly.
In order to ensure that the accounts payable process remains efficient, C-Suite executives should evaluate the accounts payable automation Softwaresolutions in line with their individual requirements. Some of the parameters to consider critically include the Softwares scalability, security protocols, data retention capabilities, and integration with existing systems. It is also essential to evaluate the Softwares reporting and document management capabilities, as well as its capacity to automate complex invoicing tasks such as item-level matching and accrual processing. Moreover, executives should inquire about the implementation costs and the total cost of ownership of the solution.
Each organization has its own Accounts Payable cycle and processes, and assessing the right automated solution is essential for maximizing efficiency. By carefully evaluating two-way matching solutions and carefully considering the above factors, C-Suite executives can ensure that their Accounts Payable process is streamlined without compromising on security.
