During a weak economic period when less revenue is coming in, improving accounts payable processes is a crucial step organizations can take to boost their bottom lines.
According to IndustryWeek, the majority of invoices are still processed manually, which can slow down productivity, resulting in late payment penalties and missed discount opportunities. Many organizations negotiate payment discounts with their suppliers, but often they are unable to process invoices within the designated time frame to receive the discounts, missing out on the opportunity to minimize costs.
The three areas of accounts payable operations that are prime for improvements are information management, automation, and business optimization, the source notes. Paper document storage comes with high costs and tends to be error-prone, increasing the chances of duplicate payments and lost profits. Accounts payable automation can be difficult because it is a complex operation. Companies can seek the services of a third-party recovery audit firm to help them identify weak areas in their processes and recover duplicate payments and other lost profits resulting from these weaknesses. Additionally, technology such as document capture and imaging systems can help organizations optimize their accounts payable processes.