Is your business being held back by inefficient processes? As a middle-market enterprise, you want your company to grow. However, one of the required cycles for that growth to occur is the procure-to-pay cycle, also known as P2P. Simply put, P2P refers to purchasing supplies or services to meet the needs of your rapidly growing customer base.
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Specifically, there are five main steps that make up this cycle. First, there is the purchase requisition. In purchase requisition, the company recognizes a need for specific supplies in order to continue doing business. It is also in this stage that the company will choose its preferred supplier for this purchase. The second step is the purchase order or PO. In this stage, the company creates a purchase order describing exactly what the buying company agrees to pay for. This purchase order is then sent to the vendor. Once the vendor receives the PO, they will often reply with an order confirmation so that the buying organization knows that their order has been received and is being fulfilled.
Once the order is delivered, you, as the buying company, must send a delivery confirmation to the supplier. Finally, the supplier will send your business an invoice requesting payment for the listed goods. Depending on the amount of the invoice and the practices in your industry, you may apply two-way matching to validate the invoice. What is two-way matching? It’s a practice of verifying an invoice’s details by comparing the goods being paid for on the invoice with the goods requested in the original purchase order.
Once the invoice has been matched, it will then have to be coded into the business’s system of record and sent to the appropriate team members for approval. Finally, the invoice is paid, and money is sent to the supplier. Then, the cycle begins all over again.
As you can see, managing invoices is a crucial element of the P2P cycle and a core part of your business’s ability to scale up. The problem is that most companies continue to rely on traditional, paper-based systems that can create so many inefficiencies. There is a better way. It’s called online invoicing software. Cloud-based invoice software can help you automate the invoice processing workflow resulting in impressive cost savings, more incredible speed, and happier employees. Invoicing apps like AvidInvoice from AvidXchange create a single source of truth for your entire accounts payable team. Plus, because the billing software is cloud-based, you can get 100% visibility from anywhere and at any time.
The best invoice management software platforms are not just robots for processing invoices. They also provide an easy way to access records of past invoices with a simple search. That means no more searching around for records when audit time comes around. With an end-to-end automation solution like AvidXchange, you can get rid of those piles of paperwork on your team’s desks and free up more time for working on higher-value tasks instead of basic administrative duties.
One of the other things to look out for is how well the invoice app integrates with your current accounting system. Invoice processing systems do not replace your accounting system as your primary system of record. That’s why you need to make sure both systems integrate seamlessly. Fortunately, AvidXchange has already created 220 integrations between our AP automation software and the most popular accounting systems.
One of the best invoice apps for middle-market companies may well be AvidInvoice from AvidXchange. Avidxchange has the experience you can trust. Our solution processed around 62.5 million transactions and over $180 billion in 2021 alone. We’ve been in this industry for over 20 years and know exactly what your business needs to make your accounts payable processes more efficient and affordable.
At first, this demotivation can lead to other errors and mistakes. Eventually, it can lead to you losing valuable employees which only creates more headaches for your business. The way to avoid these issues is to rely on invoice billing software. If you’re curious about what options are available for this kind of solution, you can search for a list of invoice billing software platforms. These lists are fairly prevalent and often include invoice billing software reviews that can be helpful.
Invoice billing software can help you pay invoices faster, meaning that your suppliers will get their money sooner than they had hoped. This can lead to stronger relationships between you and your suppliers who will appreciate your new timely payments. Furthermore, some suppliers will even offer discounts to organizations that can rapidly pay invoices instead of the normal 1-2 week delay that often occurs.
AvidXchange features a secure invoice management login so that you can ensure that only authorized users are allowed access to your accounts payable. This creates an additional layer of security so that you can process invoices with peace of mind.