In today's technology-abundant world, every single finance department is coming to realise a simple yet salient fact: optimising or automating the Accounts Payable (AP) process is no longer a mere "nice-to-have" or a "maybe", but a crucial necessity for staying competitive.
And, among all the components within the Accounts Payable department, one area that often becomes a major bottleneck is supplier invoice processing.
We've all experienced it; despite many businesses adopting Enterprise Resource Planning (ERP) systems, some still rely on manual invoice processing. Consequently, when it comes to the process of making purchases and obtaining approvals, we're left waiting... and waiting... and waiting.
However, with the remarkable Accounts Payable automation software available today, businesses can streamline their supplier invoice processing at scale, leasing to reduced costs and also stronger supplier relationships. As suppliers play a pivotal role in the business network, improving these relationships is key for success.
Find out more about why supplier relationship management matters.
Supplier invoice processing refers to the Accounts Payable (AP) function responsible for handling and managing invoices. This process starts with the invoice receipt and continues until the payments are made and recorded in the general ledger.
Regardless of the format in which the invoices are received (PDF, mail, e-invoice, or others) the information is initially scanned (either manually or automatically), and then entered into the accounting system. From there, it undergoes a specific workflow for approval and subsequent payment.
A supplier invoice processing workflow is comprised of a series of steps that must be followed to effectively process invoices.
Typically, these workflows start with a supplier or vendor submitting an invoice for payment. Next, the individual or department responsible for ordering products and/or supplies carefully reviews the invoice and cross-references supporting documents to ensure all the information is accurate. This phase is often referred to as the capture stage.
The invoice is then advanced to the approval stage. In a manual workflow, it is sent to various departments for evaluation, which can lead to issues like duplicate payments, late payments, and, ultimately, dissatisfied suppliers and vendors.
Once the invoice is approved, it is processed for payment via a previously determined payment method. Finally, the invoice is archived and recorded in the general ledger for auditing purposes.
However, this type of invoice management process lacks scalability and sustainability, especially for Accounts Payable departments that handle numerous supplierS and/or vendor relationships.
In today's fast-paced business environment, improving invoice processing efficiency is crucial for organisations to optimise their cash flow, strengthen supplier relationships, and reduce operational costs. Embracing modern technology in the form of AP automation solutions and implementing streamlined processes can significantly enhance the efficiency of the Accounts Payable department. Here are some actionable steps to help achieve this:
By implementing these measures, your Accounts Payable department can achieve a significant boost in efficiency, reduce manual errors, and foster better supplier relationships. Embracing automation and leveraging technology are the key drivers to achieve a streamlined and efficient invoice processing system.
In today's fast-paced business world, manual data entry is outdated, and automation is the key to streamline financial activities.
However, with so many options available, it's crucial to choose the right tool for your specific needs. The good news is that even automating a small percentage of financial operations can lead to significant gains.
At Yooz, we remove all barriers to AP and Purchase-to-Pay (P2P) automation adoption by providing a powerful, easy-to-use cloud-based solution designed to cater to the needs of the modern financial department. Our aim is to remove all barriers to automation adoption and make the process as easy as possible for you. The benefits of Yooz include:
Our solution ensures that you save tinme, money, and resources while maintaining the highest level of security for your financial data.
With over 250 native connectors, Yooz seamlessly integrates into various information systems and ERPs, surpassing any other solution on the market.
If you are ready to take your AP process to the next level, embracing automation for maximum efficiency, let's have a chat. The future of financial operations is at your fingertips.