How to manage accounts payable effectively?
If you want to effectively manage your AP, you’ll have to identify the problem-causing areas and the processes that act as bottlenecks to speed.
AP problems occur due to manual work, which causes errors and time delays. For example, mistakes can occur while recording invoice data and in the three-way matching process. Invoice approvals can also cause problems because there is no central oversight over the approving process - frauds can be common. AP personnel can miss payment deadlines or pay incorrect amounts, straining relationships with vendors.
So, you will only be able to manage your Accounts Payable effectively if you arrange for fool-proof oversight and stringent payment reminders. Invoice automation software is your best bet here as it will eliminate manual duplication of data, route invoices to approvers automatically, and separate your unapproved, pending, and paid invoices. A digital trail will make oversight and audit easy as well.
Advanced procurement software, like Kissflow, come integrated with invoice automation features.
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