Implementing Accounts Payable Automation Software To Combat Double Invoicing
Double Invoicing
Accounts payable (AP) automation software is an invaluable ally in reducing time and costs associated with manual accounts payable processing. Additionally, by leveraging technology to its maximum potential, companies can be sure to curb incidences of double invoicing, saving both time and money. This article will discuss the mechanisms that should be adopted when leveraging accounts payable automation software to reduce double invoicing incidents.
The time and money spent on manual accounts payable processing can be tremendous. From verifying invoices to the actual payment process, the expense required to maintain human-based accounts payable system can be substantial. Furthermore, errors in invoice processing and payment can be common, leading to increased costs associated with payment compliance and fraud. Automated systems provide reliable and cost-efficient way to streamline AP process and reduce the risks associated with double invoicing.
An automated system has multiple safeguards built into its core to ensure accuracy and compliance with financial regulations. To begin with, accounts payable automation solutions monitor several components within the invoice data, including the vendor number, date, invoice number, and amount. If any of those components has changed within the past 90 days, the system will automatically flag any inconsistencies and raise the corresponding alert. This helps protect against vendor fraud and accidental double invoicing.
Furthermore, automated AP solutions integrate with enterprise resource planning (ERP) software to capture preset business rules for each customer. This ensures that the invoice number is always the same and that the payment is made on time. This is essential for companies that are dealing with hundreds of invoices each month, as it reduces the amount of manual labor needed to process each invoice. Additionally, it helps prevent fraudulent invoicing as each invoice is matched against predetermined customer contracts.
In addition to safeguarding against fraudulent invoicing, automated accounts payable solutions also allow companies to reduce the time spent on manual payments. By leveraging software, AP teams reduce the tediousness of manual processing, enabling them to devote more of their resources to core business activities. Automated solutions integrate with existing software, such as bank accounts, credit cards, and third-party services, to streamline payments. Moreover, they come with features such as automated invoice matching, which makes it easier to identify discrepancies and duplicate payments.
In conclusion, accounts payable automation software provides an effective way to reduce the risks associated with double invoicing. By leveraging automated solutions, companies can gain precise insight into invoice data, detect deep discrepancies, minimize manual processing, and streamline payments. As result, companies can save both time and money, allowing them to focus on strategic business initiatives.
