How Efficient Is Your Accounts Payable Process | Digiscribe

By definition, invoice processing is performed by the accounts payable {AP} department and comprises several steps for managing your supplier or vendor invoices. It involves capturing the general ledger codes then matching them to supporting documents, sending invoices to authorized people, authorizing invoice payments, processing payments and archiving the payment information. Invoice processing is one of the core tasks of an AP department. Automated invoice processing allows the AP department to streamline invoice processing, achieve better control of internal processing functions and improve the speed of invoice processing.

However, not all AP departments that invest in invoice processing software reap its benefits. The following are a few ways through which you can use the invoice processing software to streamline your AP department.

Opt for paperless invoice processing

People are appreciating the many benefits their businesses will reap when they go paperless, but they do not think this can apply to their invoicing processing as well. If your invoice processing is not paperless, you will limit the ability to streamline the functions of your AP department. Going paperless will start with asking your vendors to send e-invoices. Though it is hard to get vendors willing to give you e-invoices, you can convince them to do so by showcasing the benefits, or you can scan the hard copies of the invoices you receive then include them into an AP automation system.

Centralize your processes and data

One beauty of paperless AP functions is the ability to turn data into actionable workflows, and unified communication when everything is digital. If your data, tools and documents are decentralized however, you will be stuck duplicating your data then keying it in to help in decision making. Centralizing your data and processes will help you cut back on the time and errors associated with manual and duplicated data entry. This hastens decision making and eases the streamlining of your AP department.

Establish and track KPIs

If you have invested in invoice processing software from Yooz so that you streamline your AP functions, you should measure your efforts. Paperless systems will track then generate timestamps for all your invoicing actions, thus creating an audit trail. Audit trails will provide more control and accountability in your invoicing and can be used to track different KPIs later. Alternatively, you can use the reporting functionality in your software’s Management Dashboard to track your KPIs.

Ease and centralize invoice communications

Digging through emails, voicemails, and other communicating forms related to your invoices can be time-consuming and frustrating. Centralizing all communication related to your invoices will ease the search process, hasten all communication related to invoices and improve the reliability of your invoices. Centralizing the communications process also boosts the accountability of your AP department.

In the current business world, sales, marketing and operations are not the only departments looking for the best technological solutions for their departments. Though the accounts payable department in the finance departments is not a profit center, there are several ways of boosting its efficiency so that it saves time and reduces operating expenses. One of the best options for boosting its efficiency is through AP automation with the above steps in invoice processing to streamline the department. The steps will cut the costs of your AP department by 81% and improve its efficiency by 73%.