Foolproof Accounts Payable(AP) Process Improvement Ideas In today’s business environment when enterprises are at a tight-edged competition, the need to do more with less has become the highest thought of strategies. Each business aims at yielding maximum ROI with the least minimum investment (accounts payable) they can do. To free up the working capital one can take numerous steps, but today we will focus on strategizing Accounts Payable Process Improvement ideas to free up some extra working capital. Do you know high accounts payable reflect greater liabilities on the business? An average of 48% of businesses tend to make 68% fewer profits because almost 62 per cent of their ROI go to the unattended accounts payable, as per studies. You must be wondering where your accounts payable management went wrong when it seems to be carefully managed? Here are the common mistakes you must be committing unintentionally in your accounts payable management: 1. 2. 3. 4.
Failing to issue purchase orders. Not consciously matching delivered items with contractual terms. Lack of visibility into vendor payments Lack of operational efficiencies in accounts payable management.
Here are the steps you can follow for accounts payable process improvement:
#Tip 1: Centralize Accounts Payable Process Management: 1. Eliminate paper invoices and accept only online invoices. 2. Integrate in your system an invoicing and accounts payable software to eliminate piles of paper and centralize payable management. This simple integration will increase visibility into entire accounts receivable and accounts payable management for your business.
