In today’s fast-paced and ever-evolving business landscape, it’s more important than ever for companies to have effective and efficient accounting payable processes in place. With the right tools and systems, businesses can streamline their financial operations, reduce errors, and improve their general bottom line.
One such tool that has gained popularity in recent years is NetSuite, a cloud-based enterprise resource planning (ERP) system that offers a wide range of accounting payable processes and financial management features. From the general ledger and financial reporting to accounts payable and receivable. Thanks to NetSuite’s comprehensive toolbox, businesses can easily manage their finances.
If you’re looking to streamline your accounting payable processes and take your financial management to the next level, then NetSuite may be the solution you’ve been searching for. In this guide, we’ll take a deep dive into the key features and benefits of NetSuite, explore how it can help businesses improve their financial processes, and provide practical tips and insights for implementing NetSuite in your organization.
Whether you’re a small business owner looking to simplify your accounting payable processes or a CFO seeking to optimize your company’s financial operations. Furthermore, this article will provide you with the knowledge and resources you need to get the most out of NetSuite and achieve your financial goals. So let’s get started and discover how NetSuite can transform the way you do accounting.
Why You Need to Update Your Accounts Payable Processes
The account payable processes need further consideration. Delays in paying vendors can harm relationships with trusted suppliers, affect payment terms, and lower service standards.
Companies can benefit from discounts such as 1% Net ten days by paying bills ahead of schedule, which can add up over time. Organizations may take advantage of these and other possibilities by adopting a strategic accounts payable approach.
Tips on How to Streamlining Your Account Payable Processes
Approximately 55% of businesses still manage their AP procedures manually, which presents a significant opportunity for advancement. Even industries that fully or partially automated their Account payable processes might gain from a revamp.
Here are ways businesses of all sizes may enhance their account payable structures. Moreover, it creates more effective, efficient methods for handling this crucial accounting function.
Review your fundamental Account Payable Operations.
It’s time to thoroughly evaluate your primary method of handling accounts payable. Do you manage it by hand? When an electronic version is an option, do you still get paper invoices from vendors and scan them? Are they often contacting you for follow-up on outstanding invoices?
Throughout this training, managers and accounting employees that process invoice approvals slowly should be alert for other warning signs. Furthermore, companies do not inform suppliers of past-due payments.
Additionally, companies that don’t pay vendors on time receive more low-grade quality services. Decentralized processing of invoices and money distribution also include.
Moreover, to adopt redundant measures across several accounts payable parts.
Companies may accurately assess the functions their account payable software will manage while detecting potential holes in their current accounts’ expected efficiency by sketching out their account payable processes.
Reevaluating Antiquated Procedures
Your accounts payable procedure likely needs an update if invoices keep piling up month after month as you wait for that dreaded phone call from your vendors seeking money.
You can outsource accounts payable, automate the procedure, or improve your current accounts payable process. These alternatives are all far more effective than manual and paper-based methods. They are especially unreliable and usually result in errors, repeated data entry, and other issues in the AP workflow.
Furthermore, managing account payables takes up an excessive quantity of time for your company. Then, to increase the effectiveness of the whole AP process, it is necessary to assess your current strategy and seek new approaches.
Standardize costly Account Payable Processes.
Before anything else, ensure your suppliers understand to whom they should mail their bills. And create a procedure that describes what field approvers or procurement specialists should do if they get bills from suppliers. A trendy place to start standardizing your account payable operations is with ineffective invoice reception procedures. Have vendor invoices flow into a central location instead. For instance, if specific departments are now responsible for their distribution and regularly lose or misplace them.
Ensure that you arrange the invoices according to priority and due dates as they come in. To handle these due dates and keep track of invoices, use an accounts aging report with designations like “current” and “past due 1-30 days.” You may shorten the procure-to-pay cycle and keep strong ties with suppliers by standardizing the receipt and approval of invoices.
Accept Digital Invoices
Many businesses still use paper-based invoicing systems and manual approval processes. Here’s the good news: Thanks to advancements in technology and software, this otherwise time- and the resource-intensive process can be automated and much easier to manage.
Receiving and paying invoices electronically helps businesses save money and time while allowing staff to concentrate on other essential activities. Computers now undertake plenty of the heavy lifting that accounting people formerly performed.
Electronic invoicing also serves in facilitating the time-consuming AP process so that it takes fewer “touches,” reduces errors, and guarantees on-time
Employ Account Payable Automation
Accounts Payable has always relied on manual processes and is a time-consuming operation that needs ongoing management. In other words, automation is a natural fit. Automation is more necessary as businesses expand, bringing on new suppliers and payment obligations.
Automating payments and other AP tasks with accounting software can reduce the workload on the accounting department. Employing an automated system allows businesses to:
Delegate
Find methods to assign duties and responsibilities to coworkers as you evaluate your current AP processes and decide which actions you’ll need to take to enhance them.
Choose a dedicated point of contact to receive, scan, and input paper invoices into your AP system, for instance, if you still anticipate getting a few each month. In this manner, the vendor will have a single point of contact if an invoice is misplaced or a payment is wrong. You may also assign team members to other roles to equally distribute the AP duties and provide the chance to concentrate on other necessary activities.
Stop Using Manual Data Entry
Manual data input is labor-intensive, costly, time-consuming, and prone to errors. Furthermore, this decreases the effectiveness of accounts payable and increases the likelihood of mistakes. Errors are unavoidable and expensive when accounting team members manually enter data from vendor invoices onto their computers.
Effectively and Automatically Archive Data
When paying bills, the AP procedure does not finish. You must also archive data that can be accessed, examined, and used later after payments. It is documented record of all paid vendor invoices. A corporation must use its financial records to create any documentation, whether it is digital or printed.
Key Takeaway
Organizations may enhance their overall financial management, optimize their accounts payable procedures, and eliminate mistakes by utilizing the features and capabilities of NetSuite. Companies may take advantage of NetSuite’s capabilities and boost efficiency and performance in their financial operations by putting the advice and best practices recommended in this guide into practice.
