How To Lessen Errors In Your Accounts Payable

How To Lessen Errors In Your Accounts Payable
July 27 09:18 2018 Print This Article

Anyone who has experience working within the Accounts Payable Department of a company knows that one small error can lead to a lot of trouble and potentially damaging expenses. However, no matter how careful a person might be when it comes to encoding and reporting the company’s invoicing processing and approvals, mistakes do happen from time to time.

Those who are lucky enough to spot the mistakes can save themselves a lot of trouble, but most of the time these errors transpire into something more serious and costly. Here are some ways you can minimize AP common errors that you should always keep in mind:

1. No More Manual Spreadsheets

The spreadsheet is the go to for many AP department staff members because it is easy to use and update. As useful and user-friendly as these sheets maybe, there is a lot of risk for human error because it requires several manual encoding repetitions. This can be very confusing for anyone, even those with years of AP experience.

The automated accounts payable software will easily reduce the chance of human errors and information duplication because it can detect any inconsistencies and report them to the manager in charge for a second look.

2. Avoid Overpay Or Duplicate Payment

Overpaying for services more than once is literally a costly mistake. More so when you end up spending duplicate payments several times a year. The reimbursement of these payments takes a lot of time and effort on the part of the vendor and they will most likely delay the process. This is a very common mistake within the AP department that when gone undetected for some time can cost the company a great deal of money.

Make sure to at least triple check any invoices before sending out payments and match each invoice and bills with the approval forms. Or better yet, in put all of your payments and invoice processing for future transactions in an automated accounts payable software and let it do its job.

3. Stop Relying On Paper

The manual bills and invoice processing system relies too much on the use of printed invoices for the approval process. These pieces of paper get passed from one person to another, increasing the chance of it getting lost or misplaced along the way. When everything is copied and accessed digitally there is very little chances of the invoice getting lost or thrown away by accident.

4. Backup All Your Files

Another common issue faced by many AP departments all over the world is losing the paper trail for their bills and invoices. Backing up all of the files take a lot of time, effort, space, and paper which makes many staff members ignore the task until the very last minute. The worry of losing data and other important documents is taken away when the entire AP system is automated making the upgrade a more reliable and dependable choice.

AP Automation Is The Future

There is no denying the accuracy and dependability of an automated AP software. All of these common issues can easily be avoided once the software is installed. It is a great investment for any company that wants to succeed while saving time and money as well.
Worried about possible fraud or errors due to manual processing of orders and invoices? Nexus Systems’ automated accounts payable software can help you get rid of these issues.

  Categories:
view more articles

About Article Author