Accounts Payable Basics

Understand accounts payable basics

Investigate the role of accounts payable (A/P) in your firm. Document the time and resources required to manage this process. There are multiple methods available to streamline the workflow from the receipt of the paper or electronic invoice to payment and reconciliation.

The account payable process can be easily isolated from other accounting practices, making it an ideal candidate for accounts payable outsourcing or software development. The efficiencies that can be gained with an accounts payable application are substantial. The three items below provide more information on these options.

1. Investigate accounts payable software products.

2. Issue RFP for accounts payable software.

3. Connect with accounts payable professionals.

 

Evaluate accounts payable software

Manage your accounts payable process more efficiently by investigating accounts payable software. The business process for accounts payable is fairly consistent across industries and business streams, resulting in a wide range of quality accounts payable applications. Make a list of the features you require before selecting products to review.
Try: Software products increase the number of firms that benefit from A/P automation. Both Bottom Line and Read Soft increases efficiency by allowing business to scan accounts payable paper invoices and uploading the relevant details into an electronic format. This software removes the need for data entry staff and increases accuracy dramatically.

Locate and select an accounts payable system

Create a list of your current and future requirements to fully automate the accounts payable process. Document the entire workflow and identify bottlenecks and inefficiencies. Follow a clear procurement strategy to increase the return on investment and to assist in the selection of a software provider.
Try: Produce a request for proposal or RFP document and make it available to the accounts payable industry. Use the supplier list provided by Find Accounting Software to determine which suppliers to invite. Obtain an RFP template from Accounting Software System to reduce the time and effort required. Following an RFP business process takes time, but results in a better purchasing decision.

Get information on the accounts payable industry

Review your current A/P workflow and discuss with your staff the options available from accounts payable services. The accounts payable basics to focus on are payment terms, discounts, vendor management and contractual agreements. Management of these key points improve cash flow and vendor relations, which are both key to any successful business.
Try: Review the accounts payable information available through networks of accounts payable professionals. Join The Accounts Payable Network to gain access to newsletters, information and product reviews. Purchase The Forrester Wave to understand the trend and direction of the accounts payable industry.

 

• The accounts payable application industry is growing to meet changing business needs. Invest time to learn about invoice processing systems and technologies to improve service and reduce costs.

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