At AvidXchange, we have found that companies that have automated their invoice processing may see a cost savings of nearly 50%, depending on their specific needs and goals for simplifying the accounts payable system. Some middle-market companies may find it easy to save money and time by eliminating the need for paperwork. That is why automating the accounts payable process by implementing paperless accounts payable best practices may be able to save accounts payable teams time and save your companies money overall.
AvidXchange could show business owners and accounts payable departments how to manage accounts payable effectively via paperless invoicing. Users could receive, track, and approve invoices on AvidXchange’s secure platform. The platform is cloud-based so that accounts payable teams can monitor statuses of invoices from any location or any device. Moreover, no paperwork is required to manage accounts payable in this manner, as the software could allow the accounts payable team to view all invoices and track them via a single dashboard. This could make it more manageable to oversee multiple different invoices at one time.
Finally, the paperless accounts payable system may allow the accounts payable teams of middle-market companies to automate the processing and approval of invoices when paying bills to suppliers. That way, they may not have to handle this process manually and can more closely focus their attention to streamlining processes and ensuring a more productive accounts payable team overall.
Accounts Payable Best Practices
When an accounts payable team employs accounts payable invoice processing best practices by opting for a paperless system for managing the processing and approval of invoices to ensure that suppliers can be paid on time, they may be able to save the company as a whole time, money, and resources.
What’s more, accounts payable internal controls best practices may allow accounts payable teams to oversee a streamlined payment system that still may still take into account many principles that may ensure a solid accounts payable process, such as security, efficiency, and resourcefulness. More specifically, a cloud-based solution such as that which we offer at AvidXchange may securely store all invoices and payment data electronically. This accounts payable solution could also include fraud protection for payments.
Beyond this, accounts payable best practices may entail a greater sense of flexibility. For example, not all suppliers want to be paid in the same manner. Some prefer to be paid via card while others opt for direct deposit. An accounts payable system that is flexible could allow you to pay in multiple ways to satisfy the needs of more suppliers.
Finally, paperless accounting office best practices could save an accounts payable team and the overall company resources. Paper is often used in excess for basic accounts payable processes, and it can be hard to quantify this until it becomes clear exactly how much it costs to consume so much paper. Adopting a paperless system could allow invoices to be processed digitally without using excess paperwork.
Best Practices to Reduce Errors in Accounts Payable
Accounts payable, often censured over error rates, bears the brunt of the blame when discrepancies don the financial cape. Steering clear of such vulnerabilities is not an insurmountable task. Deflating error prevalence is attainable with the inclusion of particular best practices into the process.
Routinely auditing accounts payable practices helps expose weak links that slip errors into the system. Audits serve as vital gauges of process effectiveness, revealing inaccuracies and possible loopholes in the workflow. It is though your eyes upon these that you can refine procedures and build a more dependable chain of operations.
Don’t sidestep the role of data validation in rooting out errors. Actively incorporate software tools that screen business data for inconsistencies and discrepancies. These digital tools, by double-checking the accuracy of accounting information, eventually reduce the scope of manual mistakes.
Gradually, shift your concerns to foster a culture of accountability and training within the organization. It could be as simple as motivating staff to thoroughly evaluate their work or investing in advanced training modules for accounts payable team members. When personal growth aligns with professional responsibility, the error rate depletes naturally, pushing efficiency to the front of the stage.
Best Practice for Avoiding Common Pitfalls in Accounts Payable
Navigating the intricate maze of accounts payable, it becomes quite evident that bumps and pitfalls are part and parcel of the journey. Yet, steering clear from common mishaps demands due diligence, determination, and an array of befitting strategies. Best practices aren’t just about enhancing process efficiency, but are also about predicting potential setbacks and crafting tactics to circumvent them.
Maneuver around the pitfall of late payments with the right set of tools in your arsenal. By automating payment schedules and setting up prompt reminders, businesses can avoid the unnecessary drain on resources that late fees generally bring along. Abiding by a strict payment schedule not only keeps your books tidy but also nurtures relationships with suppliers.
Steering clear from duplicate payments requires diligent observation. Utilize automated systems to track invoices, flag duplicates, and foster a tight grip on outgoing expenses. When you set up systems to monitor and scrutinize financial information, both accidental and fraudulent duplicate payments get axed before they affect your bottom line.
Lastly, dodge the trap of disregarding staff training and development. Staff is, after all, the torchbearers of efficiency and accuracy in your accounts payable department. Invest in their continuous learning, motivate them, and cultivate a congenial work environment—because when they grow, the business escalates, overcoming pitfalls with great strides.
Best Practices Around Automation in the Accounts Payable Workflow
Within the framework of accounts payable, automation presents itself as a rather useful ally. It faithfully chips away at the colossal task at hand, turning mountains into molehills. Automation, when employed correctly, manifests as a prolific tool of process transformation and efficiency enhancement.
Abolishing manual data entry sits atop the list of automation’s many benefits. With human intervention alleviated from the equation, error prevalence plunges and data accuracy floating. Automation begins to weave its seamless thread of efficiency in the workflow, punctuated with precise, accurate data entries.
Beyond data accuracy, automation takes a step ahead and enforces timeline adherence within the accounts payable process. The system ensures prompt processing of invoices, on-time payments, and systematic follow-ups. Not only does it nip late fees in the bud, but it also cements reliable business relationships with suppliers.
The expanse of automation benefits doesn’t end here; it stretches into the sphere of cost reduction. By eliminating manual tasks, speeding up processes, and reducing error incidents, automation inevitably brings about significant savings. Over time, these small victories contribute to a substantial financial gain in the operation of accounts payable—automating the climb toward optimal efficiency.
Paperless Invoice Processing
Invoice processing has traditionally involved an invoice to be coded by hand before being delivered to the proper designee for approval. Afterwards, the invoice is delivered again for payment. The manual processing time may typically take up to 12 minutes, which may not seem like a significant amount of time on the surface. That said, more time could be added to those 12 minutes if there is a mistake in the invoice or if the invoice gets lost anytime during the process. These errors could also result in payments arriving to suppliers late.
The traditional billing and invoicing process could consume massive amounts of time and money. This waste can hold back a company’s success and growth. For middle-market companies, implementing an automated end to end process of accounts payable may help better streamline the accounts payable system for the accounts payable team. By implementing concrete accounts payable process steps, accounts payable teams may be able to use fewer resources to process invoices and lead to their prompt approval.
Adopting a paperless invoice processing system alone could potentially reduce costs for a business and the accounts payable team. That is because automation may save time and money and allow accounts payable teams to devote resources to other areas, like aiding in overall growth of a business. The accounts payable process is one area where automation could potentially help a company’s bottom line, and investing in a paperless system could be part of that.
Converting to Paperless Accounts Payable Software
AvidXchange’s paperless accounts payable software could allow invoices to be scanned into the system where accounts payable teams can receive, track, and approve them on one platform that may be intuitive to navigate. After the invoices are scanned, they will appear on the AvidXchange dashboard. From this one location, accounts payable staff could quickly move invoices to the next step needed for processing. The invoice approval software could help expedite payments to suppliers.
Because the process is paperless, this could lead to an accounts payable process improvement. Accounts payable departments could have control and visibility into transactions. Paperless accounts payable software also could aid accounts payable departments used to relying on manual methods in converting accounts payable to paperless systems.
Finally, AvidXchange may replace manual purchase ordering, invoicing, and bill payment with one software automation platform. Companies could automate their accounts payable process and in turn see that they may not only save the time spent handling these processes manually but also money and resources that may be associated with accounts payable processes that are paper-heavy. Accounts payable processes that do not rely as heavily on paper may be more efficient, secure, and resourceful. In turn, the accounts payable team is more efficient overall.
Paperless Invoice Approval System
The manual invoicing process flow can take more time than some accounts payable teams have to spare. In turn, accounts payable teams may find themselves scrambling to ensure that invoices are processed properly so that they may make it through the approval steps. Under traditional methods, the invoice has to be coded by hand. Then, someone in accounts payable has to ensure that the invoice arrives to the person designated to approve it. Finally, they have to generate a printed check. This check could get lost or stolen, which could present a number of security and efficiency issues.
Beyond this, this counter-productive process may not leave accounts payable staff time to check the invoice for errors. A tangible accounts payable invoice processing flowchart could allow accounts payable teams to ensure that the invoice can be processed thoroughly and accurately.
AvidXchange is an invoice payment processing system that could reduce the time and manpower needed for invoice management. Once an invoice is scanned into the platform it is used to automatically code the invoices. The system will then search an invoice for a dataset that will be used to determine the next recipient. This paperless invoice approval system can reduce human errors, time spent on accounts payable, and paperwork.
Accounts Payable Controls
A company’s internal controls are the rules and procedures used to maintain the integrity of financial information. When it comes to accounts payable controls in particular, a business’s internal controls for purchases and payables could ideally include having a record of every invoice sent to them.
AvidXchange could tighten internal controls, potentially ensuring improved visibility throughout the AP cycle. Companies who automate their accounts payable might be able to reduce the risk of paying a supplier twice or late with AP software. Businesses could possibly rely on AvidXchange’s automation to refine their electronic payment internal controls.
Beyond this, AvidXchange allows for automation that codes the invoices so that they may be approved by the accounts payable team. This may be more effective because AvidXchange makes use of machine learning, which could reduce the number of mistakes that may be inevitable if the accounts payable process were to take place manually. Beyond this, AvidXchange’s dashboard could be accessed by the accounts payable team from any place, so long as they have a stable internet connection and a working device. This could allow for transparency throughout the whole payment process.
In sum, AvidXchange could transform the way that middle-market companies pay their bills by offering a paperless method for processing and approving invoices. Automating the payment process could not only help ensure that suppliers get accurately paid on time but also bolster a sense of security.