SOP OF ACCOUNTS PAYABLE AND RECEIVABLE: Maximizing Operational Performance through Accounts Payable Automation

Organizations increasingly recognize that success of operations depends directly on the efficiencies of underlying processes. A poorly managed administrative workflow can bring operations down to a grinding halt, affecting profitability, customer service and the overall satisfaction of stakeholders. In the accounts payable (AP) and receivable (AR) processes, leveraging automated software solutions has been a game-changing revelation for many businesses.

By streamlining the delivery and tracking of payments, accounts payable automation software removes burden from manual approaches and mundane tasks. Automating the management of purchase orders, invoices, checks, credits and other transactions means savings in both time and money. However, the gains extend beyond price, as automation can capture double payments, lost invoices and deliveries automatically. By allowing for visibility into the entire workflow, Finance Executives can deliver value faster to stakeholders and keep a better handle on cash flow.

Automation offers significant advantages, such as: reduction of human error, improved information accuracy and faster performance of operational tasks. Automation can also help to generate reports so that stakeholders have access to key information and analytics. Executives can gain insights into actionable reports and present them to the members of the C-suite, which can further contribute to organizational performance.

Additionally, accounts payable automation software can facilitate detailed financial reporting by allowing for a comprehensive view of current and past transactions. Reports can be generated per supplier, reason for payment, terms of payment, department or other criterion. This can increase transparency and accuracy in the budgeting and financial planning process, allowing executives to formulate better decisions and achieve greater performance. Furthermore, automation can increase the security of the accounts payable and receivable processes by reducing paper-based processes. By having less physical items associated with AR/AP, the risk for mistakes or fraud is significantly reduced.

By deploying accounts payable automation software, companies can present a positive cash flow position and benefit from improved performance in their accounts processes. This can be achieved by automating the entire workflow, ranging from invoices and approvals to payment. Finance Executives can leverage automation to make administrative processes smoother, save time and money, have a better financial reporting delivery, and maximize operational efficiency and performance.