In the world of business, it’s not unusual for accounts payable to be a lesser priority over accounts receivable, especially in small businesses. It’s only natural because accounts receivable equals money into the business and that’s a priority.
Nobody likes to talk about money, but money is the source that keeps a business running.
Let’s not be mistaken though, there are several critical reasons why you should give your accounts payable process the attention it deserves, which involves much more than just keeping the lights on.
There are many ways to go about setting up the best accounts payable systems for your company, let’s review those ways now.
Move Toward a Paperless Environment
Paperless technology makes it easy for businesses to connect with their vendors and share information securely.
But the perks of going paperless don’t stop there! Here are just a few more reasons why paperless is important:
Improves workflow – all your information is right at your fingertips no matter where you are.
Going digital is safe and secure and makes managing your finances much easier. Communicating with vendors digitally creates a digital “paper trail” that’s far more reliable than a physical one.
Digital invoicing – paper invoices take up unnecessary filing space, and they’re much easier to misplace, leading to more guesswork, wasted time, and even late payments down the line.
Automate Your Workflow
Streamlining consolidates steps and centralizes information to reduce redundancies and errors.
For instance, entering invoice information manually not only increases the chances of creating errors in the data but also takes a fair amount of a team member’s time. People can only type so quickly.
Finding the right accounting automation tool allows you to:
reduce manual data entry,
mitigate errors, and
spend less time processing each AP document
Benefits of Cloud Accounting
Using an online accounting software platform will help you better manage your accounts payable activities. With an automated AP system, you’re not wasting time on excessive data entry, and you stand to reduce the costs associated with bookkeeping errors and document storage. A great software solution makes all the difference!
You’ll also see that a digital process is easier to review and control than most manual processes. And that means better business decisions and less risk of fraud.
Accounts payable automation software uses artificial intelligence and machine learning to identify unusual patterns that can indicate fraud attempts. Patterns such as ACH fraud, asset misappropriation, or even duplicate invoices.
How RAI Can Help
It can be challenging for busy business owners to set up an automated AP process and manage it in-house.
That’s where Redmond Accounting can help you! If you’re feeling overwhelmed by the need to assess and improve your accounts payable process, we have the technology and the expertise to fill any gap in your accounting functions.
To learn more about what we do, we encourage you to browse our services and continue reading our articles for helpful insight and tips!
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