How to Tune Your AP Automation for Maximum Workflow Efficiency
The accounts payable department is one of the easiest places to notice if your organization is dealing with poor quality data. Bad data in AP has a direct impact on cash-flow, which makes addressing this problem of vital importance for your company. While these errors are costly, the good news is that data quality problems in the AP department are easily quantified because of the direct financial implications.
It’s not enough to just locate the current problems and take care of them, though. You need an integrated software solution that makes it easier to prevent future errors and equips you to catch and correct errors that still slip through.
Poor data quality in the AP department directly results in problems such as over-payment, duplicated payments, missed incentives, fraud, and maverick spend. Your company and AP department will need to perform assessment activities to analyze problems in the department and investigate the root causes of poor data quality.
The problems will look a little different for each company, but there are similarities. For example, if you discover a problem with over- or under-payments there’s a good chance you’re dealing with an inability to match appropriate invoice information to the payment process. That’s an error having to do with generating believable, properly contextualized data in a usable format.
Once you identify the problems in your data, you can start taking action to correct the issues. This step involves designing a plan for correcting data quality, optimizing cash flow, and integrating data quality strategies with the entire AP department.
When designing a data quality correction plan, you need to identify the root causes of each data quality issue and take corrective action. For example, if duplicate payments result because the AP department pays for goods without a receipt, you need to implement a receipt matching system. If you’re missing payments because there’s a delay entering new vendors into the system, you need to increase efficiency in that area. It is in these steps that automated AP software starts to play an important role.
When you use a system like NextProcess’ AP Automation Software, it corrects many of the problems that come from poor data quality. It is also designed as a sustainable system that continually works to preserve data quality and prevent errors. NextProcess AP software instantly reduces costs and provides detailed oversight into invoice processing.
Our software processes invoices automatically, routes them for electronic approval, and matches invoices with purchase orders. Every single AP event is logged and easy to access so you can double-check any data you’re suspicious about. Contact us to schedule a demonstration and discover how automatic AP software can simplify accounts payable, saving your company both time and money.