What Should Be Your Accounts Payable Priorities: Here’s A Quick Guide

What Should Be Your Accounts Payable Priorities: Here’s A Quick Guide

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A common misconception of business owners who switch to the latest automated accounts payable solutions available is that all of their invoicing issues will be solved right away. While companies like https://nexussystems.com/ who provide AP software do make a difference in the invoicing and billing processes of businesses, there are still a few things you must do to enhance your AP department.

These are the most important details you need to prioritize to ensure you maximize your brand new automated AP system:

  1. Cut Down The Cost Of Invoice Processing

For businesses who have yet to look into the automation of their AP system, cutting down the current cost in the invoice-processing should be the number one priority. AP department who heavily rely on the paper-based invoicing use up too much time to sort through the different paperwork, create more copies, and manually file these papers for future references.

It is estimated that up to $20 is spent on the processing of a single paper-based invoice. In contrast, some automated AP systems only amount to less than $3 per invoice. It is a big difference in expenses when your AP department processes thousands of invoices a year. Going for an automated accounts payable solutions will definitely be a major priority for companies who want to lessen their AP expenses as a whole.

  1. Improve Current Report’s Accuracy

It must a goal of every AP department to produce very accurate expense reports at all times. These reports should also reflect real time financial data so that executives can make smart decisions about the company’s finances. Having access to accurate and up to date reports allows for better insights which helps people make strategic choices when it comes to identifying profitable trends and where the bottleneck in the accounts payable happens.

As soon as these reports are submitted and analyzed by the right people, important and significant changes may occur within the company to increase profitability.

  1. Eliminate Duplicate Payments

Duplicate payments can be a source of great loss for a company when it is not detected by an AP software right away. Sending out multiple payments to one supplier makes it harder to reverse the process, especially when the payments have been sent for a extended period of time. Look into the possibility of duplication and other payment errors as soon as your AP department starts using automate accounts payable solutions software to save your company a lot of money and hassle.

  1. Organize Your Suppliers

One priority to consider when trying to improve your current AP system is organizing your list of suppliers. By placing them into four categories, URGENT, STATUTORY, UTILITY, and NORMAL you can prioritize your interactions with said suppliers. This makes it easier for your finance department when choosing which supplier to prioritize when their invoices arrive.

Choose your AP priorities well and look into automating your current AP system with the help of https://nexussystems.com/ . Your company’s finances and cash flow will significantly approve after just a few billing cycles, that’s a guarantee.
Full AP Automation brings a ton of benefits to your business. Improve your operations and enjoy the gains. Contact Nexus Systems today at https://nexussystems.com/