Take a step further with your Accounts Payable procedures

Automate your Accounts Payable procedures to improve efficiency, increase agility, and mitigate risk.

accounts payable procedures

Accounts payable procedures allow businesses to stay on top of their bills and expenses. Standard operating procedures are especially helpful because they enable organizations to systematize the way in which vendors, contractors, and suppliers are paid. 

While it is possible to manage all of your accounts payable procedures manually, automation tools and software can help simplify the process. By automating accounts payable you can take a step back from time-consuming tasks and focus more of your attention on the areas of your business that matter the most.

Is AP automation the right step for you?

There are many different ways that automated accounts payable procedures can work for you. For example, you can create accounts payable and receivable journal entries to monitor your expenses and record which vendors you have paid and who still needs payment. 

Each accounts payable journal entry should be dated and filled out with as much detail as possible to ensure accuracy and continuity. Journals can either be handwritten or created online via automation software. 

The latter may be preferred by companies making the transition from manual, old-fashioned procedures to simplified, streamlined tasks. Automating journal entries and other accounts payable tasks can save you time and promote greater accuracy in your workflows. Accounting errors can hurt your business’s cash flow, so be sure to use an intelligent system to help. 

Rossum’s accounts payable solutions improve efficiency, increase agility, and mitigate risk. This modern cloud-native platform boasts advanced AI capabilities, capturing data in much the same way that an actual human would. This results in quicker validation, embedded analytics, and more. 

With Rossum, you can get more out of your accounts payable process. You can offload many of the manual tasks holding you back from achieving your greatest business potential. Rossum makes it easy for all users, no matter where they’re located, to manage accounts payable procedures in a timely fashion. This can be particularly ideal for remote teams.

Creating an Accounts Payable procedures manual

Accounts payable procedure manuals can be extremely helpful when managing the accounts payable process. If you’re lucky, you may be able to find a preexisting manual tailored to your unique workflow. 

Otherwise, you will have to create your own set of instructions to standardize tasks within your organization. You can view a payment procedure example or download an accounts payable manual PDF to learn more about accounts payable manuals. 

Using other manuals as a guide can be extremely helpful when writing your own. Five ways to improve your accounts payable department include: 

  • Move to the cloud to eliminate paper invoicing
  • Build in cash reserves to your budget for a rainy day
  • Make your calendar more efficient and set up payment reminders
  • Cultivate and enhance your vendor relationships
  • Create a standard accounts payable workflow 

When creating a vendor payment policy and procedures manual, you should consider your business needs and capabilities. 

  • How many vendors do you work with? 
  • What does your current accounts payable process look like?
  • Is there anything you would change about your accounts payable process?
  • Do you notice any gaps in your workflow? 
  • Do you have anything you need to address with your team? 

By defining your specific needs and goals, you can more easily standardize your accounts payable cycle and succinctly convey these ideas in your procedures manual. It’s important to keep everyone on the same page, and a good manual can help you to do just that.

Understanding the payment process procedure

Each payment process procedure may differ slightly from the others, which is why it’s important to have a standard procedure manual to prevent confusion and promote alignment on common goals. In addition to creating a manual, you can view accounts payable policy and procedures examples to gain a better understanding of how standard procedures should be set. 

You can see what policies other businesses have implemented successfully, and which ones have been unsuccessful. Patterning your own procedures after those that have proven successful for others is a great way to get started, especially if you’re new to accounts payable.

You might also consider using accounts payable procedure template to outline your process and determine your overall strategy. While templates should only be used as a rough guide for defining your unique policies and procedures, they can help you to start generating some ideas. 

Of course, each procedure should be uniquely tailored to your business needs and goals, but templates can serve as a good starting point. They can help you stay organized and make sure that you don’t skip over anything important. You can then make whatever adjustments are necessary to get things aligned with your company goals. 

What is an Accounts Payable process?

So what is the accounts payable process, and why is it important? Accounts payable refers to the debts companies owe to their vendors and suppliers. The accounts payable process includes: 

  • Invoice receipt for goods or services obtained
  • Approval for the invoices
  • Closing out and paying the invoices

What is accounts payable on a balance sheet? Simply put, accounts payable on balance sheets reflect the amount businesses owe their suppliers for whatever was purchased. In other words, it refers to a company’s invoices to its vendors.

Accounts payable should not be confused with accounts receivable, which refers to an entirely different process. Accounts receivable is the money that customers owe your business—in this way, accounts receivable can be thought of as the opposite of accounts payable. 

Understanding accounts payable vs. receivable is critical to managing your finances. It’s important to keep track of both the debts you owe to others, as well as the money that needs to be collected from your customers.

This information is crucial for reconciliation and auditing purposes. It is also essential for taxes. Viewing accounts payable and receivable examples is a good way to learn more about the differences between the two and how they should be managed.

Accounts Payable process steps you should take in your business

When outlining vendor payment policy and procedures, you should consider all accounts payable process steps. Different businesses manage accounts payable in slightly different ways, so there isn’t necessarily a one-size-fits-all solution for this process. However, there are a few standard steps that should be accounted for, no matter your specific business objectives. 

How does the accounts payable process work? 

The first and most obvious step in the accounts payable process is the purchase and acquisition of goods. Once you’ve obtained your items, you will receive an invoice detailing the goods delivered and how much you owe. That invoice is then routed to the appropriate staff for approval and payment. 

Accounts payable process PDF can be incredibly helpful when trying to understand the accounts payable process. Also, because PDFs are easy to open and distribute, they can be used as a valuable teaching tool for the rest of your team. 

You can quickly and easily convey critical information to get everyone on the same page in terms of the accounts payable process. This can lead to greater alignment and improved business outcomes across the board.

Extracting data from PDF invoices at scale can be challenging. What’s an effective method? By choosing a dependable and experienced partner to help. 

When it comes to extracting data from PDF invoices, Rossum is the trusted provider of choice. Our powerful AI neural engine is capable of processing large volumes of documents and invoices in an instant, with unmatched accuracy and precision. 

Whether you’re looking for structured invoice data for accounting purposes or unstructured info for further analysis, Rossum has you covered. So if you need a reliable partner that can handle all your incoming invoices, scanners, and PDFs efficiently, look no further than Rossum. 

P2P process in Accounts Payable optimizes procurement

P2P, or procure-to-pay, describes the procurement step in accounts payable. It involves a series of steps to sourcing and receiving desired goods. The P2P process in accounts payable is critical to the accounts payable process as a whole. 

Creating P2P cycle journal entries is a great way to stay on top of this process and ensure that you receive each item you’ve purchased. As with other aspects of the accounts payable process flow, P2P journal entries can be automated, saving you time and helping to promote greater accuracy.

Additionally, you might browse a procure-to-pay process PDF for a brief overview of what P2P entails and why it’s an essential component of accounts payable. As mentioned previously, PDFs can be easily distributed to the rest of your team, making them an ideal teaching resource. 

You can also look at a procure-to-pay example for a more in-depth look at how this process works in action. This is especially important for those new to accounts payable and who need a template or framework to model their process after. 

Understanding each element of accounts payable processing, including P2P, can set your business up for greater financial success.

Learn more from Accounts Payable examples

There are many different types of accounts payable examples that demonstrate the importance of this process. For example, if you want to learn more about making payments with credit vs. debit cards, you should look specifically for examples of accounts payable for debit or credit. 

These can provide a helpful overview of what to consider when making different types of payments to vendors. Your accounts payable department can benefit from seeing different examples of accounts payable from multiple angles. It’s important to consider all aspects of the process, and templates and examples can help you get started.

You might also browse examples to better understand the differences between accounts payable and receivable. But is accounts receivable an asset? Accounts receivable are displayed as asset accounts on balance sheets. 

This is in contrast to accounts payable, which represents a company’s debts. Googling “accounts payable is what type of account” can yield many helpful results on how accounts payable should be treated and where it fits in with the rest of your finances. 

Looking at different types of accounts payable examples can give you a more robust understanding of the process, as well as how to automate tasks for greater efficiency. Platforms like Rossum allow users to get more out of their accounts payable procedures, improving accuracy and enabling them to make payments on time every time. 

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