5 ways to improve your Accounts Payable department
The revenue cycle is one of the most important parts of any business, and it is the accounts payable process that “greases the wheels” of an enterprise and allows it to grow and prosper.
Have you considered how your accounts payable department could be improved and made more efficient? If your business isn’t currently utilizing technology such as AP automation, you’re leaving a major opportunity for improvement and increased efficiency on the table.
There are many different options when it comes to improving your AP department, and in this guide, we’re going to walk through a few “quick wins” and provide you with some tips you can implement into your accounts payable process today.
Improving your accounts payable department
There are several ways to improve your accounts payable department and make it more efficient over time. While it may seem daunting to change workflows or move invoicing to the cloud, taking steps to improve your accounts payable department can not only save your business time but also money.
Eliminate paper invoicing by moving to the cloud
Paper and manual invoicing can significantly slow down your invoicing process, cost your business money, and take up a good amount of time out of your employee’s days. By completely eliminating paper invoicing and moving completely to the cloud in a paperless manner, you can speed up how fast your accounts payable department processes invoices and also allow your employees to approve and sign invoices remotely, giving them increased flexibility and control.
Build cash reserves in your business
Building a cash reserve in your business can never be overlooked. Since your budget includes planned costs and planned income, it’s always a good idea to reserve extra cash for a rainy day when your business might need it in a hurry. Weathering any potential storms by having extra cash in the bank is absolutely essential for businesses that plan on operating for years to come.
Set up payment reminders and work on calendar efficiency
Having an efficient calendar with payment reminders and scheduled events allows your accounts payable department to know exactly what is happening at what time, and always be in the know. When communication is lackluster and calendar events or important dates aren’t communicated properly, this communication gap can lead to human error and unpleasant results with your AP workflow.
Grow your vendor relationships
Your vendor relationships are the lifeblood of your accounts payable workflow and are one of the most overlooked aspects of improving your AP efficiency. Vendors like partnering with companies that respect them, help them, and understand them. By showing your vendors that you truly have their best interests in mind and are willing to work with them through thick and thin, you can give them the confidence they need in order to trust your business further and streamline your accounts payable workflow as much as possible.
Standardize your workflows
Building processes and standardized workflows are essential if your business grows at a rapid pace. At a certain point, your employees can no longer “decide” what to do autonomously, and there must be a strict process in place for the entire accounts payable process. By having standardized workflows, you’ll ensure your business can continue scaling.
Use Rossum to implement AP Automation into your company
As of 2020, 36% of businesses were still relying on paper invoicing and 44% were looking for ways to introduce automation to their AP workflow. Ready to make a change? Consider improving your accounts payable department by eliminating paper invoicing to save time and money, building cash reserves in your business, growing relationships with your vendors, and standardizing your workflows and processes for maximum efficiency.
If your business is ready to improve your AP process even further, look at implementing AP automation into your accounts payable workflows, contact the Rossum.ai team today to learn how your business can benefit.
Leveraging modern technology and automation can provide your business with increased efficiency, more employee flexibility, and higher growth into the future. It is a prudent step that any enterprise can take to secure their future and improve their AP workflows.