You might be surprised to learn that most AP problems are not caused by a lack of funds. It is generally the result of being disorganized, which can lead to missed payments and accruing interest. Disorganized processes can also damage your relationship with partners or suppliers and cause mistrust and a bad reputation.
What is the accounts payable process?
Accounts payable are the company’s financial obligations to vendors or organizations providing goods or services. Such goods and services are necessary for the company’s operation and performance. These vendor accounts must be monitored on a daily basis, as they often involve large cash exchanges. Not keeping track of them could lead to a loss for the company or issues with your corporate audit.
Why is it important to have an organized accounts payable process?
1. Time optimization
Considering that most payments these days can be made electronically, your process can be even more streamlined. By integrating your process with existing financial systems, your AP process can be fully automated. Once your new AP process is adopted, the team can easily monitor, track, pay and report on all outbound payments.