How manual payable process works

Manual processes are tedious and are always at risk of error. To start with here we have listed the steps to show how the accounts payable process.

Receive Supplier Invoice

The accounts payable procedure begins when the accountant receives an invoice. Invoices may arrive at a different person in a different department.

Invoice Allocated Internally

It is forwarded to a suitable person, either a company accountant or a specialist.

Invoice Data Entry

The accountant then type the details into some spreadsheet.

Invoice Approval

The procedure includes verifying that the expenditure was approved, that the complete delivery arrived before payment is allotted, and that the invoice is not already paid, performing a 3-way match. It is time-consuming and nearly impossible to ensure that payments are made timely.

Invoice Payment

Once invoices are approved, most companies match the checks to the accurate envelope, add postage, and post.

How accounts payable processing software supports with the accounts payable procedure

Better dealer management

You don’t have to look up a retailer or seller address, check on payment terms. Using accounting software, you can effortlessly manage all of your dealers in one significant location, know precisely who your communication person is for each dealer, and be confident that your payment is documented as it is processed.
You’ll be able to understand how much you’ve compensated each dealer in any given time-frame, which can help extremely with expense control.

The accountant can complete the payment mechanically

No more dragging out the chequebook and then recording them for your registers. If you use accounts payable processing software, you can enter bill details, the amount owing, and the date due, and select to pay those bills when the payment is outstanding. You also have a selection of payment options open to you with a standard check run, credit card payment, or A/C transfer.

Appropriately documented expenses

When you use accounts payable process software, you or your assistant can code the bill to the proper expense description. This procedure allows you to better manage your cash. If you are pondering how much you’ve expended on conveniences for the year, just access the Conveniences Expense account for understanding the whole.

Disbursements will be completed on time

Nobody wishes to be late in making a disbursement. Accounts payable process software will flag outstanding payments, ensuring you see to pay them. Using manual accounts payable process, you alone are accountable for viewing your reference ledger or spreadsheet to see what disbursements are outstanding. Again, if you only have a few vendors to pay, this may not be an issue, but even if you have to pay just five vendors monthly, your life will be much easier if you use accounting software.

Improved Audit and recording options

You should have a solid audit track using accounts payable process software, from early approval to the final bill payment procedure. You’ll be able to create more correct financial statements if you’re applying for a refund or seeking investors.