Managing accounts payable (AP) can be a complex and time-consuming task. From manually entering invoices to chasing approvals and processing payments, the process is often filled with bottlenecks that can lead to late fees, strained vendor relationships, and a lack of financial visibility. An efficient AP process is crucial for maintaining healthy cash flow and making strategic business decisions.
NetSuite provides a powerful, unified platform to transform your accounts payable operations from a manual cost center into a streamlined, automated function. By centralizing your financial data and processes, you can significantly reduce manual effort, minimize errors, and gain real-time insight into your company's liabilities.
Here are some best practices for streamlining accounts payable using NetSuite.
Automate Invoice Processing
One of the most significant drains on an AP team's time is manual invoice entry. This repetitive task is prone to human error, which can lead to incorrect payments and complicated reconciliation efforts.
NetSuite helps you move beyond manual data entry. With features like SuiteApp solutions for Optical Character Recognition (OCR), you can automatically scan and capture data from vendor invoices directly into the system. This not only saves countless hours but also improves accuracy, ensuring that key information like vendor name, invoice number, date, and amount is captured correctly every time.
Leverage Workflows for Approvals
Waiting for invoice approvals is another common bottleneck in the AP cycle. Paper invoices can get lost on desks, and emails can be overlooked, leading to delays and frustrated vendors.
NetSuite’s workflow engine, SuiteFlow, allows you to create customized approval routings based on your company's specific rules. You can set up multi-level approvals based on invoice amount, department, or vendor. Approvers are automatically notified and can review and approve invoices directly within NetSuite, even from a mobile device. This creates a clear, auditable trail and ensures that invoices move through the system quickly and efficiently.
Centralize Vendor Management
Maintaining accurate vendor information is essential for smooth AP operations. Outdated addresses, incorrect payment terms, or missing tax information can all cause payment delays and compliance issues.
Use NetSuite's robust vendor management capabilities to create a single source of truth for all vendor data. You can store contact information, payment terms, banking details, and tax documents in one centralized location. The vendor center dashboard gives you a complete view of your relationship with each supplier, including purchase orders, bills, and payment history. This makes it easier to manage relationships and resolve any issues that arise.
Utilize Real-Time Reporting and Dashboards
To effectively manage accounts payable, you need clear visibility into your financial obligations. Without real-time data, you are essentially flying blind, unable to accurately forecast cash flow or identify potential problems.
NetSuite offers powerful reporting and analytics tools that provide instant insight into your AP processes. You can create custom dashboards to monitor key metrics like days payable outstanding (DPO), invoice cycle times, and upcoming payments. These real-time reports allow you to make informed decisions, manage cash flow proactively, and identify opportunities for process improvement.
Optimize Your Payment Processes
Making timely payments is key to maintaining good vendor relationships and taking advantage of early payment discounts. Managing different payment methods and schedules for hundreds of vendors can be a challenge.
NetSuite’s payment management features simplify this process. You can manage multiple payment methods, including checks, ACH, and wire transfers, from within the system. The platform can automate payment runs based on due dates, helping you capture early payment discounts and avoid late fees. This level of control ensures your payments are accurate, timely, and aligned with your cash management strategy.
By adopting these best practices, you can leverage NetSuite to transform your accounts payable process. Moving away from manual tasks and embracing automation will not only increase efficiency and reduce costs but also provide the financial intelligence your business needs to grow.
