The accounts payable system of any business plays an important part in the company’s chance of succeeding. This is the department that handles the flow of cash inside and outside of the company. A slight mishandling incident can derail a company’s shot of a successful future. If you haven’t been paying attention to your AP department, it’s time to take a closer look.
Here are some tips you can use when you are trying to make a better, more efficient, and possibly error-free accounts payable department:
Tip 1: Create A Very Simple Accounts Payable Process
Most companies try to make the AP process complicated by adding in a few unnecessary steps thinking this will reduce the chances of fraud. Sadly, when the paperwork has to go through several clearances and requires different signatures, it only makes it longer and inefficient. Plus, there is a high risk of the papers getting lost or even ending up in the wrong hands.
Instead of making the process long and complicated look into updating your outdated paper-based system into a better automated payables software from companies like https://nexussystems.com/.
Tip 2: Organize The Paying Schedule
As much as everyone wants to pay their suppliers and vendors as early as possible, trying to keep up with all the invoices without a system will result in a disaster. The best way to ensure everyone gets paid on time, no invoices are duplicated, and no invoices are lost or misplaced is to keep the payment schedule organized.
Instead of paying the invoices as soon as they arrive, limit the release of payments to twice a month. It will make it easier to track in case there are some discrepancies in the future. This is best done with the help of an AP software that can easily arrange, organize, and even flag suspicious invoices.
Tip 3: Look Into Using AP Technology
As mentioned before companies like https://nexussystems.com/ already have tested and proven payables software that your company can benefit from. Getting rid of the paper-based system also means avoiding costly human errors and oversight, as well as lessening the instances of fraud. There are just some jobs that an automated system is better equipped to deal with than a human employee.
If you’ve been thinking about switching to an automated accounts payable system, there’s no time like the present. You will be amazed at how efficient and fast your accounts payable department will become after making use of this piece of technology.
Tip #4: Optimize Payment Terms With Suppliers And Vendors
Businesses who have a good relationship with their suppliers and vendors can try to negotiate the payment terms. If your company is known to always pay on time, some vendors will likely offer discounts and even access to premium items for less. It is always good to talk to the people you are working with, this might just help your business save a few dollars here and there which will improve your accounts payable system as well.
It can be daunting to shift to an automated AP system, but it is all worth to know that you are staying on top of your cash flow and finances. Don’t let scammers and bad business practices ruin your chance of success, automate your AP system as soon as possible!
A good accounts payable software brings flexibility and efficiency into your system. This means you can focus on more important things growing your business. FInd our more at https://nexussystems.com/