Are you considering an automated accounts payable system for your business or organization? If yes, then perhaps you already know the drawbacks of manual systems.
Payment delays, paper invoices, delayed approvals, and inadequate visibility are very common in modern businesses that have not yet automated their payment systems. To counter such, you need a reliable, flexible, and robust AP system.
Automated accounts payable systems process and record different invoices for purchases with credit terms.
Main functions include; document matching, bill payments, report, cash disbursements, and general ledger posting. Automation minimizes accounts payable workload, fraud, and human error.
But how do you choose the right software for your needs? To effectively analyze automated payable system solutions, you must understand your organization’s requirements.
The right data will help you select a provider that meets your firm’s particular needs. To help you with that here are some tips on choosing the right AP solution for your organization:
Evaluate the existing weaknesses
As mentioned earlier, if you are looking for a better solution, chances are you already know the weaknesses in your existing payment process. So assess your company’s system from end to end to pinpoint every issue.
This way, you will be better positioned to identify a solution that can help you address the challenges.
Analyze your invoice process
What does your existing AP invoice system look like? For instance, how does the invoice data capture process work? What works in the existing system, and what doesn’t?
Summarize the processes from the beginning to the end (how invoices are captured, coded, approved, and processed). Also, what other payment processes do you have and do they integrate well with the current system?
Once you lay out the process, you will ascertain the ideal accounts payable solution for your needs.
AP Automation Goals
List your goals for the new system. Do you want comprehensive visibility into your liabilities? Or do you want to get rid of manual data entry? Outline the goals so you can refer to them as you compare different solutions.
Centralized Information Management
The software you go for should ensure that all invoices are processed centrally. This includes invoice receipts, data collection, and validation. This is very important if you have several business locations.
The Cloud Is the Way to Go
Having an on-premise system means you will have to install your servers and do your configurations in-house. But is this worth it? Combine that with other systems, and you create a time-consuming process and a complex business environment.
Going for a system that runs through the cloud is a smart move as it is not only less expensive but will also allow you to develop a robust AP landscape.
Tax Form Collection
Do you spend several hours looking for a client’s tax ID number? Extracting and processing tax data becomes a big challenge if AP systems are not automated, particularly when working with several suppliers.
And that’s where an automated payable system with a tax form collection feature like GetYooz comes in handy.
Most accounting systems or Enterprise Resource Planning are customized to cater to the specific industry the business is in. As such, the solution you choose should integrate well with the other systems in your organization.
Choosing the right AP automation solution for your business can be a hard nut to crack if you do not know where to start. However, by considering the factors mentioned in this guide, you will considerably enhance your chances of buying the ideal software for your company.