Streamlining Accounts Payable With Automation Software
ACCOUNTS PAYABLE THREE WAY MATCH
Accounts payable represents critical component in any modern organizations financial operations. The ability to accurately process payables quickly and efficiently can mean the difference between success and financial ruin. When it comes to streamlining processes and boosting operational performance, automation software specifically designed for accounts payable is the most obvious solution.
CFOs and their accounting teams face significant challenges when it comes to managing payables. The most common process, referred to as three way matching, entails precisely verifying and matching purchase orders, vendor invoices and inventory slips, as well as manually calculating any discrepancies that are found. Addressing these types of discrepancies requires fair amount of expertise, and often involves manual data entry and validating the accuracy of the records. It is painstakingly tedious process.
By transitioning to accounts payable automation software, finance executives are able to make the process more efficient and accurate, while reducing manual errors and time spent on reconciliations. Utilizing such platform allows the accounting team to greatly reduce manual data entry, automate rules-based validations and create an invoice-to-payment process that complies with the organizations policy. Automation also provides the needed security and transparency when making payments, and offers real-time reporting capabilities that manual process simply can’t provide.
The implementation of such advanced technology can also help reduce overall costs and improve long-term cash flow. Automation can identify discrepancies between the PO, Inventory Slip and Vendor Invoice, such as any markups or overcharges, long before payment has been issued. Thereby mitigating any unnecessary payment that the organization may need to make. Organizations can also increase the speed of the payments to vendors and suppliers, as the automation software can be setup to recognize the total payable amount and reconcile any differences quickly. The longer it takes to issue payment to vendors, the most interest rate your organization is liable to pay.
Ultimately, accounts payable automation software reduces human effort and operating costs, while providing an unprecedented level of accuracy and control in the finance department. By streamlining the workflow and providing insight, in real time, across the entire invoice-to-payment process, automation allows CFOs to manage their payments more effectively, prioritize spend and stay in control of their accounts payable.
