Maximizing Operational Performance Through Automated Three-Way Matching
3 Way Match Accounting Entries
For todays finance and accounting executives, automation has become an indispensable tool in the effort to streamline internal processes and maximize operational performance. In the ever-changing enterprise landscape, accounts payable (AP) departments are now able to take advantage of powerful Softwaresolutions that enable three-way matching. This technique improves process efficiency, accuracy and cash flow, thus impacting the bottom line.
Three-way matching is the process of validating purchase orders (PO) against goods received (goods or services) and invoice amounts. In its most efficient form, the task requires manual corroboration of delivery documents and invoices against expected goods, leading to inefficiencies by way of excess labor and opportunity costs. Therefore, it is essential to invest in Softwaresystems for AP automation to reduce reliance on cumbersome processes.
Accounts payable automation software allows finance executives to enhance the match process and centralize data without manual interventions. Additionally, with the industry becoming increasingly digital, business can leverage AI-driven features to further minimize labor time spent on non-strategic tasks. The innumerable benefits of automated three-way matching include:
Reduced Time Spent on Matching: Automation reduces the time required to complete matching through automated validation and repository storage of data. This can result in up to 90 percent less time spent reconciling transactions.
Error Reduction: Exhaustive validation capabilities and automated scanning help reduce the likelihood of errors caused by manual inconsistencies, leading to improved accuracy and better cash flow accuracy.
Improved Visibility and Fraud Detection: Automated AP systems provide enterprises with the means to assess historical data and vendors carefully. Furthermore, automated matching can help identify duplicate payments, check discrepancies and detect patterns based on vendor data to identify potential fraud.
Content-driven Analytics: Business executives can reap the benefits of analytics driven decision-making to gain insights into overall financial performance, payment trends and more. Using advanced analytics to measure success metrics, such as average days payable, can help firms adopt more cost effective and responsive approach to payables.
By investing in accounts payable automation technologies and adopting automated three-way matching processes, business can achieve tangible business ROI through improved operational performance and enhanced fiscal visibility. This can position finance executives to gain control over their enterprise?s expenses and optimize resource allocation.
