Automate your payment approvals
Did you know that accounts payable departments generally take up to 16 days to process an invoice?
Yet some suppliers may stop doing business with you if they constantly have to run after your payments. That could be critical if you depend on those suppliers for your production.
What’s more, by reducing the time it takes to pay your suppliers, you could get discounts for paying early.
Now, imagine that in the blink of an eye your accounts payable processes speed up and go exactly the way you want them to.
Do you dream of a perfectly orchestrated accounts payable process?
In an ideal world, you would no longer have to chase payment approvals because the billing officers are proactive. All it takes is a click of a mouse to approve invoices because all of the documents needed for approval are digitized and saved in one place. You receive approvals in real time and can quickly move on to the next steps in the process (e.g. issuing cheques). You no longer lose time looking for a piece of paper or sending reminders to the people involved. Everything is perfectly orchestrated.
Of course this is not happening in your company. You constantly need to run after the managers who are authorized to validate payment. You don’t always know where to find the required paper documents. Invoices for small amounts take as long to get approved as those for large amounts, which may leave suppliers confused and cause them to become impatient.
Some quick gains for a more ideal situation
Before wishing for a perfect situation that requires a big commitment, did you know that there are some simpler ways to overhaul your accounts payable process at your own pace? These solutions don’t take a large investment but allow you, at the end of the day, to optimize how you handle payments.
Here are a few quick gains for your company that will allow you to become more proactive in managing your cashflow.
- Observe a typical full payment cycle and identify the steps that could easily be automated.
- Ensure that all payments under a certain amount and the fixed recurring payments are validated automatically.
- Spend your time on the exceptions and large amounts.
- Automate internal reminders so that the individuals authorized to approve payments are never late. Stop relying on reminders from your suppliers.
Would you like to know more about these and other steps you can take? Contact us to find out how you can improve your accounts payable processes through some quick and easy-to-implement changes.