Leveraging Software To Enhance Operational Performance Of 3-Way Matching
3 Way Match For Service
Finance executives are continually looking to refine their processes with the aim of streamlining their departments, while improving performance and reducing costs. With the introduction of Accounts Payable Automation (APA) software, the concept of 3-way matching has emerged as viable option to improve the speed and accuracy of the Accounts Payable (AP) process.
3-way matching is an APA software-based approach that involves the matching of an approved purchase order (PO) against the goods or services received and the invoice payment. This process involves ensuring accuracy and eliminating duplicate payments, which in turn leads to improved operational performance in the data entry, approval, and payment processes.
To leverage the full benefits of 3-way matching, finance executives should consider deploying software platform that allows for the re-scanning of documents and audit trails to provide an audit-proof record that reduces financial and legal risks associated with the AP process. Such Softwareshould also provide robust Purchase-to-Pay (P2P) module that automates manual tasks like the sourcing, ordering, and invoicing of goods and services.
Furthermore, executives should consider software that provides powerful analytics tools, budget monitoring capabilities, and an automated PO approval workflow. By minimizing time required for manual reconciliation and maintenance of documents, and enabling better data control and visibility, APA software with 3-way matching can provide improved flexibility and accuracy, as well as facilitate quicker settlement of supplier invoices.
To maximize the functional benefits of this software, finance offices need to incorporate up-to-date accounting principles into the system. Improved reporting, forecasting and analysis capabilities will enable financial teams to make better informed decisions, while enhanced tracking capabilities enable cost reduction and compliance with internal controls.
Finally, implementing cloud-based solution will make the AP process readily accessible to any necessary users, and provide scalability as the business grows. By taking advantage of the modern features available through 3-way match APA software, finance executives can ensure that their organization is running efficiently, while mitigating the risks associated with manual processes.
