3 Common Accounts Payable Issues
Posted by: Brookside Admin
How well does your accounts payable process work? Most business owners think AP at their business is working fine, but there are often hidden problems or unknown opportunities that are costing you money. When your accounts payable process isn't as efficient as possible, it could cause an inflation of your team, and make it difficult to pay your own bills and vendors on time.
At Brown Kinion, our Quickbooks Pro Advisor offers help to improve processes like accounts payable to make your business run more smoothly. Here are a few common issues business owners like you encounter that we can help with.
Human error in accounts payable
Many accounts payable departments rely on manual entry. You or an employee has to key in data on each invoice. It's both time consuming, and introduces a high risk of human error. The answer to this is to incorporate more automation into the process. When you're using Quickbooks or similar accounting software, you can integrate other systems to make the minimize the manual element. This can save time, manpower, and potentially eliminate errors in your accounts payable process.
Digitize accounts payable documents
Each transaction can produce multiple documents for your AP department to keep track of. On average, one transaction produces between two and seven documents. Now consider how many transactions your business makes on a daily, weekly and monthly basis. Suddenly, you're swimming in vital paperwork.
Storing these documents creates a big issue. They take up space and are difficult to organize and sort through. This creates an inefficient workflow. You risk duplicating payments, losing track of the current state of your finances, and more.
So what's the answer? You can't stop creating documents for these transactions, but you can digitize the documents rather than relying on hard copies. With accounting software, creating digital documents becomes much easier, and you can track, access, and store them easier as well.
Centralize accounts payable process
Can you name a single individual, or group of individuals, in charge of accounts payable at your business? For many business owners, the billing process has become far too complicated as the business has grown. Purchase orders often have to pass through multiple departments and employees, which can distort the reason behind the order, and delay the process.
If that's happening at your office, it's time to streamline. Centralize accounts payable to one department and one team of employees. To help, you can hard code your process into your accounting software to make it easier for a smaller team to manage.
These are just three of the most common problems that occur in a typical accounts payable process. For additional help, contact the experts at Brown Kinion and Company. We offer both small business accounting services, as well as Quickbooks help to keep your finances and accounting department running smoothly.