Automating this process can be a hassle, but there are various ways in which you can ease into this transformation. This way, you can make sure that no employee feels left out or anxious.
This article holds the key to easing into the transformation of automating the AP workflow. Go through this article to make sure that there are no hitches in the AP workflow transformation.
Paperless Automation
Optimizing the entire AP workflow is a very obvious solution to make the entire process efficient and easy to use. But it comes with its drawbacks; many people who aren’t used to the digitized system can mess up and cause losses. To ease them into a system with paperless automation, the first step you can take is to give the employees trials before converting entire systems to a digital version.
You can conduct workshops and reinforce and reward behavior that enhances the team’s morale and the mentality to use such a system. This process saves a lot of money, it makes it so that you spend next to no money on the invoices, and the entire process, from data entry to the final payment, can be done cost-effectively and efficiently. Paperless automation is one way to make easy transitions, but you need to be prepared before any such change. Otherwise, you might end up making your employees anxious.
Streamline your workflow
Even for an automated workflow, errors while data is entered or the signing while cheques are being made can be harmful to the company as a whole. The more complex the systems, the more the chances of errors to occur. There can also be various hindrances in the approval process and tasks that have to be mandatorily manual. To reduce the chances of errors occurring, you need to streamline the entire process and standardize the quality of this work.
This form of centralized work works well for the company too, as it is believed to be quite organized. In the case that the company has multiple branches and you are the head of the AP team, all the company’s invoices will come to you for approval. Data redundancy can occur in such a situation which should be avoided wherever possible. But the fact that all the data needs to be centralized before moving forward stands; it is necessary for a streamlined workflow.
Firm up access controls
Access controls should be limited to a few people; that way, there won’t be too much of a chance of error. It also minimizes the duplication of data in case someone copies the data and reduces the chances of fraud. By limiting access controls, you might be cutting down on a small amount of transparency, but it increases the quality of the work by a huge margin. It is also one way to ensure that no one messes up the entire system by entering the wrong data unknowingly.
Giving the AP controls to specific people works well with the idea that the access controls have been secured and there is little to no chance of the breach of sensitive data. These invoices are often worth millions, and a small change here or there can cause the entire economy of the company to come crashing down. So tighten your hold on the access controls.
Standardize payment
Just like the workflow was standardized, if you standardize the method and delay before the payment, you should be able to build a good amount of goodwill with your suppliers. They will know what to look for to get the payment and when to expect it. This sets a flow that can’t be disrupted until there is an emergency of sorts in the company itself. This payment can be standardized to being online payments (It’s the easiest way to make payments, the most cost-effective too), cheques, or simply cash (This is rare in big businesses).
However, this standard way of payment shouldn’t include negotiations or renegotiations. If you can lower the costs or get more supplies for the same costs, go for it. Avail discounts whenever you can, wherever you can. Being efficient in the costing of your supplies is as important as being efficient with your AP workflow.
Keep information up-to-date
All the information, particularly the supplier information, should be up-to-date. This means that if any information is out of date, it can cause major issues in the company, along with huge losses. To avoid this, try to remain updated on the various contacts of these suppliers.
Conclusion
In conclusion, keeping the entire process efficient and streamlined is very necessary to the health of the company. Keeping this in mind, take care of the AP workflow, which in turn takes good care of your company.