Improving operational efficiency is the best way for any business to save cash and improve the bottom line. Once a company has done everything possible to streamline every methodology and each workflow, what is left?
The most overlooked program to simplify transactions with the goal of saving money and time is to start an automated Accounts Payable system. AP Automation is frequently overlooked, because many executives are still trying to learn the secret of maintaining a beneficial computerized Accounts Payable system that is also successful.
Wallet Page by XuYiling
Having AP Automation in place and running is more straightforward than it appears at first glance.
The Importance of AP Automation
Selecting the right software is critical to having a successful system. The right software means the difference between a labor-intensive system and one that runs itself. By adding AP Automation, all of a company's invoices can be managed through one easy program accessible anywhere there is an Internet connection.
The software gives suppliers immediate access to their invoices and eliminates paper statements and follow-up phone calls, another step in streamlining an operation.
Decrease Defects
Businesses using AP Automation have been found to reduce their defects by up to 90%. Automating the payment process leads to more straightforward tracking, and up-to-the-minute tracking translates into real-time status updates merely by logging into the account.
Illustration for Refundo by Igor Kozak
Automation of this frequent ‘back end' operation simplifies the paperwork and eliminates manual processing while untangling confusing organizational flowcharts. Wasted resources are wiped away, and the business saves money.
The Key
A variety of choices for establishing an automated Accounts Payable system exist. Owning the best will prove its value to the business repeatedly.
Tips For The Accounts Payable Team
As a manager, there are a few tips to follow which can guide you and your team as you move forward.
Start Early
Beginning the process early will allow for time to work on it without rushing. Working too hurriedly will result in data entry errors and other mistakes which end in wasted time and money.
Focus
There are enough distractions at work which feed into losing work hours. In 2015, a survey revealed that chatty co-workers, mobile phone notices, and other distractions steal 759 hours each year — per employee. By focusing, productivity will be boosted, and the result will be more serious workers who don't waste time on trivial activities.
Communicate
Keep the lines of communication open. Successful collaboration is dependent on effective communication. Without it, procedures will get bottle-necked and tasks will start to fall through the cracks.
These tasks are performed by people, and if the manager leads effectively, they will manage their procedures well also.
AP Automation Installation and the 5W1H Approach
The analytical strategy for implementing and installing automated Accounts Payable systems uses the six questions of the 5W1H approach — who, what, when, where, why, and how. This methodology will analyze the implementation process for assessing, reporting and tweaking the use of AP Automation in the business.
Comments