2 Way Match And 3 Way Match: Maximizing Operational Performance With Accounts Payable Automation Software
2 Way Match And Way Match
business have long sought reliable solution to streamline their accounts payable workflow. With manual processes such as two-way and three-way matching prone to errors, fully-automated accounts payable function is valuable business asset. Accounts payable automation software can help accounting professionals significantly improve operational performance and associated costs.
A two-way match is an important security measure for business, validating both invoice amounts and receiving reports. It reconciles the items on the purchase order with the items invoiced by the vendor, and ensures that the provider receives payment only when they have supplied the correct amounts and items. Automation Softwaresimplifies this process and allows multiple invoices to be matched against one purchase order. This can be time-consuming task and can lead to billing errors and payment delays. Automation software can provide timely notifications and reminders to help accounting professionals stay abreast of any discrepancies.
A three-way match widens the scope of the match to factor in the receiving report or GRN. This additional layer of compliance requires business to reconcile not just the invoice and purchase order, but also confirm that the products were received before approving payment of the invoice. Automation Softwaresimplifies this process by collecting the essential information required to perform the match and providing valuable touch-points to alert finance personnel of any discrepancies.
Automation software is designed to capture key financial information and secure it in single database. This helps to reduce costs associated with paper-based processing and manually tracking large volumes of purchase orders, invoices and GRN. Automation also helps to quickly identify any incomplete data and easily consolidate duplicate invoices using various sorting criteria.
Finance professionals can leverage automation software to develop tailored workflows for specific financial processes, helping to accurately track documents such as purchase orders and invoices to establish steady payment cycles. This allows business to make only those payments already due and avoid the risk of incurring penalty fees or late payment charges. Automated capabilities allow finance professionals to quickly access all POs, invoices and related documents in one place for easy review and faster processing.
At its core, automation software offers comprehensive suite of tools to optimize accounts payable operations, from streamlining invoices and reducing manual data entry all the way to simplifying vendor inquiries and proactively managing escrow-holds. By leveraging technology and digitally transforming accounts payable, business can reduce their costs, increase efficiencies, and improve their bottom line. Finance Executives can thus use accounts payable automation software to accelerate their payment process, improve accuracy and enhance security.
