Strategizing Improved Operational Performance With Software For 3 Way Matching Accounts Payable
3 WAY MATCHING ACCOUNTS PAYABLE
The quest for heightening the efficiency of Accounts Payable (AP) operations for C-Suite executives continues to remain looming challenge. Many organizations are stuck in loop of tedious document processing, manual approvals, inaccurate records, and inability to ensure compliance, as mistakes in these domains can ripple into major monetary losses. An optimal solution that many organizations are now beginning to realize is to implement Accounts Payable automation software. Automation software addresses all the challenges regarding the headache of manual processes and payment inconsistencies.
Adopting an Enterprise Resource Planning (ERP) software to digitize the three-way matching of AP operations is instrumental in delivering host of operational improvements. Three-way matching includes deciphering if the invoices received, goods received, and the purchase orders match to each other. In conventional methods, manual data-entry often leads to inaccuracies such as incorrect invoices, goods, or orders. Automation of the data-entry process with 3-way matching software can help in improving accuracy and on-time bill payments. This way organizations can build rapport with their supplier-network and avoid hefty fiscal fines or loan-defaults.
With the help of AP software, organizations can establish an Immutable Ledger of Records (ILR) in the cloud. Here, all the documents and records related to accounts payable such as purchase orders, invoices, goods receipt notes, and payments can be stored in secure and unaltered manner. ILR eliminates manual data-entry and eliminates the need for document storage in multiple departments. It reduces the possibility of errors and makes it easier for finance executives to access records for audits or compliance checks within minutes.
Procure-to-payment processes are another critical aspect within AP operations. Automation software for 3-way matching helps in streamlining this process to great degree. It creates an online purchase order approval process that allows purchasing departments to issue purchase orders, track receipt of goods, and settlement of payments with suppliers in real-time. It also generates purchase order number at every stage, thereby mitigating the risk of duplicate payments. Moreover, collaborative workflow analytics enable approval gateways allowing only senior-level personnel to sign purchase orders to minimize careless or fraudulent transactions. Hence, automating the manual process of AP data-entry, tracking, collaboration and approval can reduce operational expenses and help channel resources towards other high priority activities.
In nutshell, automation of accounts payable processes should be priority for C-Suite executives in order to deliver tangible operational improvements and streamline manual processes. Automation of 3-way matching with the help of an efficient software provides an effective solution that can give organizations an edge in todays competitive landscape. It allows for better agility, improved accuracy, cost savings, and compliance with regulations. Moreover, it can help in alleviating the daily struggles that finance executives often endure in dealing with manual operations.
