In part one of this series we looked at the some of the easiest ways to examine and improve the efficiency of your invoicing process, from auditing your current setup to automating your workflow. In this post, we're going to zoom in a bit closer on the kind of tools you can leverage to start the process in earnest and streamline things as much as possible. Your company will benefit much more from an AP department dedicated to providing business intelligence than it will from a department mired in avoidable paperwork, so let's dive right in.
Plan ahead to prevent needless waste.
Delays in invoice processing and other similar issues that occur regularly in AP departments across the country may seem inconsequential individually, but taken all together they can account for a major source of waste, both in terms of time and money.
Take a close look at your payments cycle with an eye to smoothing out the review and approvals process to ensure that payments can be made in a timely fashion. This will prevent the need to use expensive transfer services such as CHAPS that can charge as much as £35 as well as late payment fees.
Don't over-communicate.
One of the largest time sinks in an AP department is the time required to ensure everyone involved is up-to-date on the current state of all accounts payable. Research from Concur suggests that over two-thirds of AP department staff spend time on the telephone with suppliers discussing payment arrangements, and that doesn't even consider time spent answering emails.
While some of that is naturally essential, by setting up a digital portal that allowed suppliers to login and view real-time data about the state of their accounts, a great deal of time and effort could be saved. Even if such a system is unfeasible for the size of your business, a simple automated email system would provide similar results and ensure everyone is on the same page.
Get mobilised.
Workforces everywhere are growing increasingly mobile, and as in all things, your business will have to keep up with the times in order to stay competitive. Just as how giving your suppliers an online solution to check their information saves time, giving staff access to real-time mobile invoicing approvals will dramatically improve their ability to handle these processes quickly and efficiently.
Build on your data and look to the future.
Once your AP team has implemented these solutions in order to smooth out their processes, save time and improve accuracy, it's time to take a look at what else they can do for your business. As your automated solutions continue running, they'll be generating a lot of data about how your business spends money, and that can provide unique and valuable insights when analysed correctly.
Everything from operating costs to supplier confidence can be boosted with a properly effective AP team, so be sure that you plan far enough forwards to take full advantage of their newfound capabilities!
Plan ahead to prevent needless waste.
Delays in invoice processing and other similar issues that occur regularly in AP departments across the country may seem inconsequential individually, but taken all together they can account for a major source of waste, both in terms of time and money.
Take a close look at your payments cycle with an eye to smoothing out the review and approvals process to ensure that payments can be made in a timely fashion. This will prevent the need to use expensive transfer services such as CHAPS that can charge as much as £35 as well as late payment fees.
Don't over-communicate.
One of the largest time sinks in an AP department is the time required to ensure everyone involved is up-to-date on the current state of all accounts payable. Research from Concur suggests that over two-thirds of AP department staff spend time on the telephone with suppliers discussing payment arrangements, and that doesn't even consider time spent answering emails.
While some of that is naturally essential, by setting up a digital portal that allowed suppliers to login and view real-time data about the state of their accounts, a great deal of time and effort could be saved. Even if such a system is unfeasible for the size of your business, a simple automated email system would provide similar results and ensure everyone is on the same page.
Get mobilised.
Workforces everywhere are growing increasingly mobile, and as in all things, your business will have to keep up with the times in order to stay competitive. Just as how giving your suppliers an online solution to check their information saves time, giving staff access to real-time mobile invoicing approvals will dramatically improve their ability to handle these processes quickly and efficiently.
Build on your data and look to the future.
Once your AP team has implemented these solutions in order to smooth out their processes, save time and improve accuracy, it's time to take a look at what else they can do for your business. As your automated solutions continue running, they'll be generating a lot of data about how your business spends money, and that can provide unique and valuable insights when analysed correctly.
Everything from operating costs to supplier confidence can be boosted with a properly effective AP team, so be sure that you plan far enough forwards to take full advantage of their newfound capabilities!
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