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