Tapping Into Software For Greater Operational Performance In 3-Way Match Accounting
3 WAY MATCH ACCOUNTING
Given the ubiquitous use of technology in the modern day business environment, decision makers want to identify the ways in which they can take advantage of it to benefit their function as an enterprise. This is especially the case for accountants in the accounts payable process. As such, automating the 3-way match accounting process with piece of software can provide immense gains in terms of timing, accuracy and efficiency.
Accounts payable automation software streamlines and accelerates the purchase order (PO) three-way match process, which serves as fundamental component of the accounts payable (AP) system. It helps accounts payable personnel and accounting departments to authenticate invoices, ensure accuracy and efficiently complete the verification process by matching vendor invoices to the related purchase orders (POs) and receiving documents.
At the heart of automating the way match lies the effectiveness of the software, which has the potential to speed up the entire process. Operational performance can be significantly improved by availing of greater functionality, such as automation of manual data entry into the accounts payable system, carry-forward of purchasing of procurement data, and instant access to all of the necessary documentation.
Rather than storing paper documents, the software also enables online filing of records. This is extremely useful for forecasting and tracability, as users can use the tracking and reporting tools to follow the progress of their leads and purchases.
Inherently, the automation process requires minimal intervention, which reduces the time taken for approvals or errors. By reducing the time taken for both corrections and reconciliations, it reduces the chances of manual errors. Additionally, any discrepancies between purchase orders, invoices and receiving documents can be easily noticed and isolated, making it easier to audit the payments and better manage cash flows.
The use of AP automation software has another important benefit financially. Effective systems enable quick resolution of vendor disputes, reduce late payment charges, lower invoice processing costs and may also enable firms to extend their payment terms. Combining this with the security benefits of having all of the data stored electronically, enhances the confidence and accuracy of information that is necessary for tax and regulatory compliance.
In conclusion, the use of software for 3-way match accounting is an effective way for financial executives to improve operational performance and efficiency. By making the accounts payable process automated, finance teams are able to reduce complexity, create accurate and secure documentation, while improving performance and efficiency. Furthermore, this translates into range of critical cost benefits and financial security.
