In today's competitive business environment, the need to do more with less has become a major strategic priority. The goal of every company is to maximize return on investment with the lowest possible outlay (liability).
There are many steps you can take to free up working capital. Still, today we will focus on strategic ideas on how to streamline your accounts receivable process to free up additional working capital.
Did you know that high accounts payable are a sign of higher company liabilities?
According to research, on average, 48% of companies are 68% less profitable because nearly 62% of their return on investment is due to outstanding accounts payable.
You're probably wondering where your accounts payable management has gone, even though it appears to be carefully managed? Here are the most common mistakes you unknowingly make when managing your payables:
Here are steps you can take to improve your accounts payable management process:
Tip #1: Centralize your accounts payable process management:
Eliminate paper invoices and accept only online invoices.
Integrate your accounts payable and receivable software into your system to eliminate paper documents and centrally manage accounts payable.
This simple integration will increase visibility into all receivables and payables in your business.
#Tip 2: Switch to paperless invoicing solutions:
For vendors that don't share invoices electronically, choose a centralized scanning solution. This will help you convert images into computer-readable text.
With Invoicera, automatically perform all steps and data entry functions (online and offline) to streamline the AP process.
#Tip3: Streamline your workflow with approval automation
Quickly approve/receive approved invoices to streamline payments. Quick approvals and payments avoid payment delays.
Manage approval tasks, general ledger entries, workflow, approvals, and adjustments or notifications.
#Tip 4: Apply more rigorous management practices
Organize functions using a standardized and streamlined accounts payable process.
Receive accurate payments much faster.
#Tip 5: Strategically increase your cash reserves
It's not always a lucky day for business. You may also experience less busy days. On days when cash flow is too slow, you may need to open your cash reserve bags and continue the lending process.
Here's a list of ideas to improve your invoice posting (AP) process:
Processing invoices
Avoid letting vendors get into debt balances.
Set up a checklist to track recurring invoices.
Pay invoices according to supplier terms and conditions.
Reduce invoice processing time.
Eliminate "floating invoice" invoices and send them to AP first.
Similarly, streamlining the AP process for different sections in payments, travel and entertainment, technology, analysis, planning, cost control, collaborative purchasing, personnel management, and customer relations.
Payments
Streamlining the accounts payable process can eliminate manual paycheck requests.
Improve supplier relationships and reduce costs by sending payments online.
Extend payment terms to quarterly
Technology
Update AP systems features
Get a system that calculates payment terms
Eliminate card files and keep them electronic.
Develop more useful reports with a dedicated team
Review specific improvements to the accounts payable process. Relative improvements can be made in unspecified areas to achieve an ideal workflow.
Finally,
With the clouds in your head, you are now free to think about the best possible ways to accounts receivable and payable management.
Invoicera- accounts payable and receivable software allows for easier management and tracking of accounts payable. Here's a brief overview of how Invoicera, an accounts payable management software, makes it easier to manage your accounts payable:
- Eliminate excessive data entry to simplify the accounts payable process (ap process).
- Easily reduce the time it takes to view invoice progress.
- Get faster automation of approvals.
- Match with the right documents.
- Get 24*7 customer support for convenient online solutions.
Experienced accounts team available at low cost for handling accounting, bookeeping, accounts payable, accounts receivable, reconciliation and payroll.https://www.3alphadataentry.com/accounts-services/
A general ledger QuickBooks is a report for all your transactions posted for each and every transaction. The three main general ledger in QuickBooks are Accounts Payable, Accounts Receivable, and Payroll.
Outsourcing company providing a wide range of cost-effective bookkeeping and accounting services to clients worldwide.
A journal entry is a record of the accounting transaction in which entered directly into the company general ledger. Journal entries are used by a company to its transactions. In the journal entries, each transaction is recorded as a balance sheet and income statement.
There are two parts of journal entries, one part is debit and the other one part is credit. The total of the debit column is equal to the total of the credit column.
