Time-Saving Tips for Accounts Payable
As all accounts payable managers know, AP processing is among the most manual, time-consuming, and cumbersome processes in accounting.
With at least 50% of all B2B payments being made manually with paper checks today, one thing is abundantly clear:
There is a world of opportunity to save time at every step of accounts payable.
From the time that a vendor sends you an invoice, to the time you send your payment, there are numerous ways to save valuable time. Here are some simple tips to save time throughout your accounts payable process:
Eliminate redundancies by centralizing your invoice processing
If you’re trying to save time, there’s nothing worse than paying the same invoice twice. Not only was time wasted while processing the redundant payment, but now you must also dedicate even more time to re-balance your books and reconcile with your vendor to set up a credit.
Especially for companies that have invoice processing happening in multiple locations, it’s easy to fall victim to this type of mistake. For this reason, dedicating one central location to process and pay every invoice can drastically reduce the number of times these costly mistake happen, and save you a lot of time.
Simplify the process by establishing a routine and training employees
There are a lot of variables that go into every vendor payment. Some of this variety is unavoidable, but some of it is not. While the departments responsible for the invoice and the way that the vendor delivers it can be constantly changing, the way in which your team manages the process of capturing, approving, and making the payment is something that you can keep constant.
Planning ahead for how to handle each of the different types of invoices you receive can help save a lot of time. Establish consistent processes, train all employees to follow it, and then stick to that process every time an invoice is received. This will simplify your accounts payable, and enable both you and your entire company to become even more efficient through repetition of a familiar process.
Minimize errors by capturing invoices in small doses
The more time you spend performing manual data entry, the more prone to mistakes you become over time. As vendor invoices trickle in, it is tempting to put off the process of capturing them to a future point in time that you can knock them all out in fell swoop. However, this practice will increase both the number of mistakes and resources required for reconciling them.
Capturing your invoices in smaller doses, or even individually, will limit errors and the amount of time you spend correcting mistakes.
Automate the entire invoice-to-pay process
Investing in an accounts payable automation solution has saved companies as much as 64 hours each month. However, a key to maximizing your investment in automation is choosing a solution that automates the entire invoice-to-pay process, and not just an individual component within that process.
MineralTree Invoice-to-Pay builds all of the best practices discussed above into your accounts payable process by integrating with your corporate bank account and common accounting systems, such as NetSuite, QuickBooks, Microsoft Dynamics GP, and Sage Intacct.
Curious to see what your accounts payable process would look like with automation? Contact MineralTree for a complimentary assessment of your projected savings with AP Automation.← Back to Invoice-to-Blog