Maximizing Facilitated Accounts Payable Automation Through Clever Software-Based Tools
2 Way Way Matching Accounts Payable
It is well acknowledged that automated accounts payable solutions can bring extraordinary productivity gains. Difficulties in scalability, risk mitigation and process optimization, however, can stymie organizations that lack the proper attention to technological infrastructure. One of the most effective ways to improve operational performance involves leveraging software-based tools to facilitate two- and three-way matching of accounts payable.
For finance executive, knowing where to begin when considering the possibilities of accounts payable automation can be daunting. Accordingly, identifying proper solutions and vendors becomes core competency when attempting to streamline processes and mitigate risk. Automation solutions that offer precise transformation of the supplier invoice reconciliation process can offer the greatest relief. By codifying predictable behavior in the software itself, company can remove tremendous cost and complexity from the accounts payable system.
Two-way matching of vendor invoices, for instance, involves invoice amounts, order dates, and sufficient timeline data to quantify how many days particular invoice payment has been outstanding. Software tools that can incorporate rules-based information related to the format and expected entry fields of supplier invoices makes this process more straightforward and less prone to human error.
In the case of most organizations, there will likely be something beyond two-way matches, such as three-way matching that requires verifying the supplier invoice and purchase orders. To ensure no discrepancies go undetected, rules-based validation between the three documents should be facilitated by the software. From the C-Suite perspective, installing software that can automatically reconcile across the supplier invoice and purchase orders allows the organization to have visibility within the various steps of the payment process. Real-time checking of line item discrepancies between documents, or comparing specific dates and quantities can all be automated with an appropriately developed rules-based Softwaresuite.
Not only do accounts payable automation Softwaresolutions reduce the amount of human labor required to complete task, but they also offer an audit trail of every step of the process that can be monitored for discrepancies and errors. Each invoice in such system will amass wealth of data with every interaction over its lifetime that is highly useful in terms of financial forecasting and risk mitigation. By storing the line items, payables data for every invoice, both current and historical can be tracked and stored for future analysis.
Finally, in the era of personal computer advancements, accounts payable automation solutions can be easily integrated into other parts of the overall infrastructure. Using virtualized server platform, all resources can be pooled together and new VMs can be quickly deployed when needed. High availability is further guaranteed through the use of built-in configuration and status monitoring systems, while any intermittent disruptions can be actively managed to ensure data integrity and high standard of operation.
In summary, by leveraging cunningly designed software, accounts payable automation can get considerable lift in terms of process efficiency and scalability. When seeking out such solutions, finance executives should opt for ones that encompass automated reconciliation and provide secure audit trail for improved financial oversight capabilities. By fully utilizing all the general features of software-based solution, all aspects of two-way and three-way matching of accounts payable can be significantly improved.
