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Accounts Payable Automation Does More Than Just Issue Payments

While accounting software has been around for decades, many businesses still rely on manual processes within their accounts payable (AP) operations. Using a high-level software system like NetSuite for business operations, like accounts payables, provides small to medium-sized businesses opportunities to save money, reduce risk, and increase efficiency throughout the full AP process.

The Accounts Payable Process

The traditional accounts payable process takes place with the following steps:

  1. Vendor invoice is received and reviewed by staff to ensure accuracy with quantities, pricing, etc.
  2. If variances or errors are found, adjustments must be made with the vendor before proceeding.
  3. If no issues are found, payment is approved.
  4. Payment is sent to the vendor.
  5. The invoice is marked as paid in the system.

The problem with traditional systems is that each step has the potential for human error and is usually very inefficient and labor-intensive. With NetSuite, each of these steps has been streamlined to eliminate the potential risks. By setting limits on purchase orders for procurement, establishing vendor preferences, and limiting access to specific employees, managers can maintain tighter control over inventory and procurement policies, improving purchasing and accounts payables cycles. 

Every company has a different accounts payables structure and internal control policies. Furthermore, not all vendors use purchase orders and some provide different receiving reports. Some accept digital payments, while some vendors will accept checks and credit cards. It is important to know what terms and conditions each vendor expects before agreements are made.

NetSuite automation software solutions are flexible and offer a wide array of detailed reports to help business owners manage and track their full-cycle accounts payable activities.  Built-in reports allow businesses to track invoices, aging, vendors, and other data to stay informed and up-to-date so decisions can be made about the company's financial health.

Eight Reasons To Automate Accounts Payables
  1. Automating accounts payables makes the process faster and more efficient. Businesses save money by reducing payroll hours spent manually processing payments and reviewing invoices.
  2. Oftentimes, early payments will qualify for an early-pay discount with vendors. Automating ensures that these cutoffs are never missed. 
  3. Fraudulent invoices are caught more efficiently with built-in automated security features and software features.
  4. Route bills that require additional attention to appropriate staff for review and approval.
  5. Faster payment reduces late fees and penalties.
  6. Reduces costs associated with manually mailing paper checks.
  7. Account reconciliation can be done easily and electronically.
  8. Make payments via ACH, credit card, or embedded bank services.
Automating Accounts Payables with NetSuite VS Legacy Systems

Compared to legacy, paper-based systems that use multiple spreadsheets or several different ledgers to maintain purchase orders and vendor accounts, NetSuite automatically imports data between accounts so there are never duplicate entries or data entry errors. Companies can save time and money spent auditing accounts for accuracy, knowing that they now have cleaner records. Purchase orders can also be electronically matched to invoices, reducing approval time, and increasing efficiency. 

NetSuite has more than twenty years of experience helping organizations leverage best practices and state-of-the-art technology to streamline their accounts payable offerings. Buinesses can use NetSuite to implement a predictable plan for success today, to get where they want to be tomorrow. 

See How NetSuite Can Help You

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