What Are Accounts Payable Best Practices in 2022?

What happened with AP during the pandemic?

Global events changed overall business operations over the past three years. Companies needed to support remote work to avoid interruptions, and automation became a necessity rather than a luxury. As a result, accounts payable best practices in 2022 evolved from the days of spreadsheets and file folders.

Cloud automation provides a secure environment for collaboration from any location on a device with the Internet. Everyone with system access can review real-time data to make time-sensitive decisions that keep production moving forward. Consider how accounts payable best practices changed and the growing role automation plays.

What are the controls in accounts payable?

Controls are crucial in accounts payable to tackle common issues, such as invoice approvals, preventing invoice exceptions, monthly and annual reports, and supplier onboarding. In addition, understanding the controls in AP and AP workflows and benchmarks helps the organization remain competitive in a constantly changing international marketplace. The AP controls include:

• Obligation to pay controls ensures invoices are accurate and paid by exact terms, including PO order approval, invoice approval, two- or three-way matching, and auditing for duplicate payments. The best practice for the obligation to pay controls is keeping POs, shipping receipts, and invoices in a centralized location. The best solution is AP automation to support remote collaboration and real-time access to financial data.
• Data entry controls ensure invoices are correctly entered into the automation system through verification processes to prevent human errors associated with manual processes and provide the highest level of accuracy.
• Payment entry controls verify that the bills are paid accurately, securely, and on time, focusing on tracking check numbers, segregation of duties, vendor payment information updates, and authorization of payments. AP automation eliminates the risk of duplicate payments, fraud, and errors associated with manual processes.
  
  

How do you simplify the accounts payable process?

The recent global marketplace provided the need to simplify AP to avoid business interruptions and remain competitive regardless of current supply and demand. Simplification starts by eliminating redundancies with centralized invoice processing, standard operating procedures, and establishing an AP workflow. In addition, automation provides a central zone for the C-suite and AP department to access real-time financial information to speed up invoice approvals, supplier onboarding, and monthly and annual reports.

Additionally, training employees to maximize automation reduces errors. Also, through invoice capture and automating the invoice-to-pay process, many companies reduce the time it takes to pay suppliers and can take advantage of discounts for early payments.

Ways to optimize accounts payable best practices

Following AP benchmarks is crucial to stay ahead of the curve. Optimizing accounts payable best practices enables organizations to remain competitive internationally regardless of external factors. Use AP benchmarks to gauge the performance of your AP department and develop optimization strategies, including:

• Streamlined workflows
• KPIs to measure AP efficiency
• Organization and prioritization of invoices
• Safeguards to eliminate duplicate payments
• Fraud detection protocols
• Secure access controls
• Going paperless and touchless through total automation
  
  

In 2022, adopting accounts payable best practices is more crucial than ever. Optimize your accounts payable department now through a complete AP automation solution. Contact us today to learn more about ways automation reduces errors and provides real-time access to financial data to make critical decisions when they matter most.