To have a fresh start after the summer holidays, it is worth considering how to clean your accounts payable process. Here are some useful tips and tricks;
Single point of entry for all purchase invoices
Invoice entry is, arguably, the most critical part of the AP process (Account Payables). Start by creating a special invoice-only e-mail address. Make sure your suppliers are aware of this change in protocol and start enforcing it by reminding suppliers that e-mails sent to any other address will not get paid.
Update of supplier contracts
Get in the habit of checking contracts often. The only way to get the best performance from payables is by not relying on old rules. Read more about the contract management process here.
Registration of all suppliers
Even one-time low-cost suppliers must be fully registered in your ERP system. If not, you risk to end up scrambling for vital tax information later in the season.
Clean your supplier database
AP team should remove any inactive supplier from the system. This is defined as any supplier that hasn’t been issued a payment in three, six, or 12 months. Doing so on a regular basis will slowly churn out stale suppliers.
The number one tip for any accounts payable department is to go paperless. Our recommendation is to take small steps towards a paperless process. Aim for constant improvement, set a goal of e g 5% more of your suppliers converted to e-invoicing per quarter (or any percentage you want).
Find out more about Palette AP Automation here.