Enhancing Operational Performance With Accounts Payable Automation Software
3 Way Invoice Matching Process
Organizations in all industries strive to improve productivity and reduce expenses. Accounts payable departments typically employ tedious manual processes such as three-way invoice matching (TWM) to pay suppliers and vendors. As such, automating such processes can substantially enhance operational performance.
TWM is the process of matching the ordered items, supplier invoice, and receiving document before purchase order is approved for payment. It is labor-intensive process in which the three documents are meticulously checked for accuracy, correctness, and completeness. The process is further complicated by myriad electronic invoices from different vendors and data transmission formats.
Accounts payable officials need to be judicious in their Softwareselection as there is wide array of accounting automation software providers in the market. By virtue of their skills and experience, finance executives have the necessary expertise to gauge the right pieces of technology.
The software chosen should be economical, easily scalable, and compatible with the current system within the organization. it ishould have the embedded capability of recognizing data formats to reduce the time and effort of manual entry. Additionally, the Softwareshould provide internal checks and balances, so non-matching lines are not inadvertently resolved.
Accounts payable automation software assists organizations in streamlining their invoice processing by introducing advanced features such as automated-invoice data extraction. This eliminates manual data entry and reduces the possibility of processing errors. The software can also be employed to calculate sales tax liabilities and add them to the adjusted invoices for automated resolution for approval payment.
By matching and reconciling invoices, accounts payable automation Softwarestreamlines the approval process, cuts the approval cycle, and decreases labor costs. The technology can also be used to proactively monitor and measure data, identify anomalies promptly and produce actionable analytics.
Organizations regularly strive to improve performance, quality, and accuracy. Integrating advanced accounts payable automation software with existing systems can ease financial workload and enhance operational performance. It not only increases data accuracy and improves user experience, but also expedit is payment cycles, resulting in increased customersatisfaction and minimized payment discrepancies.
