Having an effective Accounts Payable process is a key responsibility of every finance team. Effective AP ensures vendors are paid on time, helping you maintain good relationships with your suppliers and avoid late payment fees. With the ongoing improvements with technology, and rapid it’s essential that finance professionals embrace changes to the AP process to stay one step ahead of the curve. Here are our tips on how to revamp your AP process in 2023:
1.Embrace automation!
Automation is a term that’s constantly tossed around in the fintech world- and for good reason. With most teams onboarding cloud-based finance systems, it should come as no surprise that automation software is the next step. OCR invoice processing, duplicate detection, online payments massively reduce time wasted by finance teams, leaving them to focus on what’s important, like financial data analytics and forecasting.
2. Adopt a cloud-based AP system
Following on from our last point if you’re not using a cloud-based system, you should be! Traditionally, you’d need to go into the office to access your finance system, but nowadays cloud-based users can log in from anywhere with Wi-Fi. In our post-Covid-19 world, where working remotely has skyrocketed, the cloud gives people greater (much needed) flexibility, while still providing security with two-factor authentication.
3. In-Depth data analytics
More so than ever before, companies are paying closer attention to their data analytics. This applies to finance teams too. By gaining full visibility of AP data, we can identify areas that can be improved, and forecast spend, which provides next level control.
4. Strengthen supplier relationships
No one wants to be *that person* who is consistently late paying their suppliers. Staying on good terms is so important for a smooth process. Regular communication, timely payments, and quick problem solving are all the ingredients that make a sweet working relationship.
5. Monitor and mitigate fraud risks
Especially those of us in finance, we’re constantly reminded fraud is a serious risk for all organisations. You can help relieve the stress of fraud prevention by using AI fraud detection systems, being strict with your approval process, and closely monitoring your transactions. A good AP software will help you keep your mind at ease.
6. Streamline payment processes
It’s official- manual payment processes are a thing of the past! For better security, speed, and accuracy, wire transfers and online payment platforms are a must. A top tip is to look for AP software that offers in-app payments.
7. Keep up with regulatory changes
It’s so important to stay up to date with regulatory changes so you can adjust your actions accordingly and make sure your AP process complies. This could be anything from changes to tax laws, to accounting standards, and payment regulations. No one wants to be caught out!
To summarise, there’s an abundance of ways you can bring your Accounts Payable process into 2023. If you’d like to speak to one of our experts about how you can get on board too, see the link below!
