Accounts payable is one of the most critical processes in any organization. In business, paying bills in a timely and efficient manner is as important as collecting payment from vendors. For many businesses, managing its accounts payable system is an uphill task. Most do not have the required expertise but can also not afford to invest time in setting up and monitoring a system of payments. If you too have little experience on managing accounts payable systems, consider hiring an accounting firm in Santa Rosa. All those man-hours that you spent immersed in records, trying to come up with a better way to manage your books, can be utilized to perform other important activities. Maintaining accounts payable records can involve tons of paperwork and elaborate processes. To provide the much-needed breathing space to its clients, the focus of accounting firms in Santa Rosa should be to simplify its accounts payable processes. How do they accomplish the task at hand? We attempt to answer this question.
1. Process Automation
Manual record-keeping systems are fast falling out of favor. Maintaining manual records is not only effort and time-intensive but also results in errors. To avoid confusions and save time, accounting firms in Santa Rosa automate the accounts payable (AP) process. Manual processes are replaced with automated procedures that keep track of invoices. Managers are able to oversee the entire process, which helps prevent frauds and avoid errors. Equipped with a range of features, AR software also generate data that helps managers prepare reports. Data generated also helps improve the accuracy of cash flow forecasts. Many softwares include auditing features that help comply with different regulations.
2. Eliminating or Automating Repetitive Tasks
AP teams perform several repetitive tasks. To save time, accounting firms study the entire workflow, and automate or eliminate repetitive tasks. In many cases, order-based invoices are connected to pre-approved purchase orders. If everything matches, the system sends it directly for posting and payment. This system helps save time, which is lost when the AP team has to code repeat invoices.
3. Establishing KPIs
Automating your AP processes is not enough. You also need to monitor its performance. To achieve this objective, accounting firms establish important KPIs such as manual approval time, total processing lead time, and automatic distribution rate. The business can use these metrics to determine how its AP process fares against competitors.
These are some ways in which accounting firms in Santa Rosa simplify the AP processes of its clients. At Virtual Jeannie Bookkeeping Services Inc., we have a team of expert accountants who can help streamline your accounts payable procedures. To discuss your requirements, call us at 707-664-1425. If you have a message for us, fill out our contact form.