Maximizing Operational Performance With Automated 3-Way Match Accounts Payable Solutions
3 Way Match Accounts Payable
Surmounting the formidable challenges associated with manual accounts payable processes is chief concern to C-level executives. Fortunately, modern accounts payable automation software offers comprehensive solution to streamline liabilities while improving operational performance.
Organizations dealing with large volumes of invoices, countless manual-entry processes, and an unwillingness to invest in new technology, typically look towards accounts payable automation software as way to facilitate the process. An automated three-way match accounts payable system strengthens operational efficiencies, simplifies complex reconciliations, and helps maintain accurate records and financial visibility.
At its simplest, three-way match accounts payable process is an edit-check process utilizing the purchase order, vendor invoice and goods-receipt information to validate invoices for payment. In the manual process, the accounts payable team should ensure that three pre-requisit is are consistently satisfied. First, validate the vendor invoice against information within the purchase order, i.e. date, quantity and quality of goods as well as rate of exchange. Second, reconcile the goods-receipt report with the purchase order and the vendor invoice. Lastly, carry out successful audit to ensure integrity of purchases.
The implementation of an automated three-way match accounts payable system transforms an overly complex and slow manual process into swift, efficient operation. Automated systems scan invoices, extract invoice data and validate them in an integrated system. This leads to improved data accuracy, reduced manual reconciliation costs and faster payments. The software is also designed to flag discrepancies thereby facilitating primary audit processes and minimizing costly mistakes.
All attempts to optimize the 3-way match accounts payable process requires thorough understanding of current operational procedures. Standardizing workflow processes within accounts payable, configuring business rules, ordering information and obtaining upfront sanction are crucial to operational efficiency. The enterprise should also take into account the specific needs of their organization when selecting an accounts payable automation software.
business can also benefit from plug-in templates with the software which provide configurable utilities such as document imaging, early payment discounts, returns tracking, escalated workflow approvals and more. Such custom tools designed to fit enterprises of varying sizes and complexity can enable accounts payable teams to minimize the paperwork, ensure the accuracy of their financial records, and provide real-time analytics for decision-makers.
Scaling operations for the future, streamlining complex 3-way payments and improving the accounts payable procedure is now easier than ever. By leveraging the technological advantages of accounts payable automation software, C-suite executives are empowered with the necessary tools to maximize operational performance.
