Accounts payable is a daunting task for many small businesses. It’s not something you want to take on manually, but finding the right accounts payable software solution can be challenging. We’ll explore six tips for using software to handle accounts payable and manage your business more effectively.
1) Automatically Import Invoices From Your Accounting Software
Invoices are a critical part of accounts payable, so it’s important to find the right solution for importing them. Look for easy-to-use integrations with your current bookkeeping platform, or choose a cloud-based option with no system requirements and seamless integrations. In addition, make sure invoices can be exported and integrated into your accounting platform for reporting.
2) Filter Invoices for Approval
Your accounts payable system should have the ability to assign an invoice or group of invoices to someone in your organization. Look for a software solution with customizable rules to quickly scan, approve and reject bills based on parameters like vendor name, amount due, payment terms, etc. This will help save time and prevent errors that could cost your business money.
3) Get Email Alerts for Invoices Due Soon
Managing accounts payable can be time-consuming, which is why it’s important to have the right software solution. A good cloud-based option will include automatic status updates, so you know when an invoice has been approved or rejected. You should also look for a system that automatically notifies your team when an invoice is due, so they can review and approve before the bill becomes overdue.
4) See the Big Picture with Reporting
Reporting is critical to understanding where your business stands financially so you can make smart decisions about hiring, expansion, and more. Look for an accounts payable system that makes it easy to generate financial reports by using pre-built templates or customizable filters. You should also look for a solution that integrates seamlessly into other third-party software, so you can pull data from multiple sources.
5) Make Payments on Time
One of the biggest advantages of using an accounts payable system is that it makes it easy to pay bills. Look for a software solution with built-in payment processing, so you can quickly and easily make payments without having to visit your bank or write checks by hand. Many options also include electronic bill presentment (EBP), so you can receive bills electronically and never miss a due date.
Payment processing is critical to your accounts payable system, but make sure it offers the flexibility of making payments through ACH or credit cards. This will allow you to choose which payment method works best for each vendor based on cost and time constraints.
6) Make Sure Your Software Is Reliable
When it comes to accounts payable, reliability is key. Look for a solution that offers robust security with multi-layered authentication and fraud protection tools like geofencing or transaction scoring. It should also provide comprehensive backup options in emergencies, so you never have to worry about losing critical data again.
In conclusion, managing accounts payable can be a massive hassle for many small businesses. Yet, with the right software solution in place, you’ll never have to worry about missing an invoice or receiving late payment fees again.