Leveraging Software To Enhance Accounts Payable Processes
Accounts Payable Process Best Practice
As finance executive in need of an accounts payable automation Softwaresolution, it is essential to consider how new system is expected to improve operational performance. Account payable process best practices require improved accuracy, efficiency and risk management across the entire process, from purchase-to-pay. Implementing the most appropriate software can result in improved operational performance, provided thorough due diligence is conducted.
The purchase-to-pay process can be broken down into three discrete regions: procurement, mastering the accounts payable process, and payment. With this breakdown in mind, selecting the appropriate software for accounts payable automation covers essential areas such as compliance, risk reduction, cost control and working capital optimization. In order to make the most informed decision, an enterprise needs to consider the benefits which technology can bring to these areas.
Ensuring Compliance
In order to assess software decision from the point of view of compliance, an enterprise needs to consider the laws and regulations to which they are subjected. The Softwareshould provide reporting and tracking of all relevant data, as well as granting specific audit rights to any necessary body. Furthermore, multiple levels of approval can be streamlined and automated in order to speed the process while ensuring any regulations are met. Manual input will be crucial in certain areas, however if the software proactively recognizes any areas where manual alterations should take place, it can significantly aid in enterprise compliance.
Risk Reduction Strategies
A primary function of any enterprise finance department is risk management. An accounts payable automation Softwaresolution should be able to ensure that all finance processes adhere to an enterprise?s internal risk strategies and policies. This applies to approved vendor lists, dual control operations, and rule-based payment processing to name few. If these criteria can be incorporated into the software and monitored, the risk associated with accounts payable processes can be significantly reduced.
Cost Control Measures
The cost of Softwaresolution is an important part of any decision, though the payback in terms of operational performance must also be considered. An accounts payable automation Softwareshould be capable of reducing costs, such as payment processing fees, late payment penalties and unnecessary banking fees. Payment discounts should also be taken into account, as technology can assist in managing and taking advantage of such opportunities.
Optimizing Working Capital
In todays economy, optimization of working capital is crucial endeavor for businesseseeking to unlock financial value. Accounts payable automation software can assist with this, not only in terms of managing cash flows but also in shortening payment cycles and improving the accuracy of invoices. When facilitated through technology, such payment cycles can become more predictable.
When looking to improve operational performance by deploying Softwaresolution for accounts payable automation, there are several key areas that must be considered. Compliance, risk reduction, cost control and working capital optimization are all important considerations that the Softwareshould be assessed against. With the right type of software, accounts payable process best practices can be achieved and an enterprise can enjoy improved operational performance across the purchase-to-pay process.
