End-To-End Accounts Payable Process: Four Easy Steps to Follow Every business needs to manage its accounts payable (AP) to maintain its cash flow. But most of the businesses fail to manage their AP because they do not follow the right procedure. First, businesses need to understand the end to end process of accounts payable that helps them in managing their upcoming payable.
The accounts payable process includes four major steps that every business should follow for smooth functioning. These steps include – invoice capture, invoice approval, payment authorizations, and payment execution. Invoice Capture: Whenever you receive any invoice through email, regular mail, fax, or through the vendor’s website portal, you need to insert that into your accounting system first. If you are following the manual process for data transfer, there are high chances of errors, and numbers might get manipulated. The manual process can also slow down, depending on the complexity of reconciling invoices with PO (Purchase Orders). So, it is advisable that you automate this process and ease your first step. Invoice Approval: Once the invoice is received by the company, and inserted into its accounting system, it needs to be routed among the business department that utilized the vendor’s products or services. To verify the delivery of the product or services mentioned in an invoice and to confirm the time it has arrived to sort out the payment issues. You need to