Managing Accounts Payable effectively is a herculean task if proper processes are not followed. If the processes are not in place managing the voluminous invoices become difficult and the tendency to make mistakes is more and leads to many awkward situations like:
– Paying twice for the same invoice
– More chances for fraud
– When best practices are not followed, payments are typically delayed. This worsens the relationship with the vendors eventually affects their performance.
– Inefficient processes leads to increased expenses like paying for extra staff, late fees etc.
– Often times, when best practices are not followed, inaccurate information is provided which results in inaccurate financial statement.
– Inaccurate Financial statements and financial reporting results in faulty financial information for business decisions.
Implementing best practices for accounts payable will help in streamlining the invoice processing, fraud detection, vendor payments as per the terms and provides accurate financial statements for business decisions