Sick And Tired Of Doing Payables Accounting The Old Way? Read This.

Sick And Tired Of Doing Payables Accounting The Old Way?

The accounts payable process is very important in the accounting aspect of the business. If you want to achieve efficiency in accounting then managing the accounts payable process properly is vital. Although all care is taken to ensure that there is accuracy in the accounts payable process, some errors are inevitable. A cycle of the payables accounting include making proper invoice, proper coding of the invoices with the proper amount, approving the invoices, matching the purchase orders with invoicing, and posting the payments. The older method of handling the accounts payable was a little tedious task. However, the newer method of payables accounting has brought drastic changes and increased the accuracy level nicely.

What are the problems of doing the old method for accounts payable?

The older method of doing the accounts payable would involve the following aspects:

1. Managing the vendor invoices

The incoming invoices that come with the purchase transactions need to be handled properly. It is important that the due dates are not missed and there is no loss of the invoices. In the old method, there are chances of losing the invoices which can cause delay for the supplier payment. This makes the late payment and also might hamper the relationship with suppliers.

2. Data Entry manually

In the old method, there is data entering of the vendor, get the approval, and make the payments afterward. In the manual entry, there are possibilities of incorrect calculations, errors, etc. This affects the business finances negatively.

3. Improper vendor management

The late payments can easily affect the trust of the vendors negatively. A lot of effort is taken for follow-up of the vendor management manually.

4. Slower processing

Manually processing the accounts payable is a very slow process. This can put a lot of pressure when the staffs to handle the activities are lesser and the work-load is more.

What are the best practices for handling accounts payable?

Let’s understand the best way of payables accounting in a newer method using the software.

1. Not skipping purchase orders

You can easily match the vendor invoice with the purchase order using the software which can ensure that no purchase order is missing. You can even review it whenever needed to ensure that no purchase order is skipped.

2. Automating accounts payable process

Automating the accounts payable process is a better way to ensure that there are no double payments, late payments, etc. There are automated payment reminders that will ensure that there are no forgotten payments or late payments.

3. An efficient workflow

Using software can enable you to make a hassle-free and smooth purchase order for completing the payments. Complicated internal processes can be easily automated to ensure that the account payable is done properly.

4. Maintain the digital records

One of the important aspects today for every sector including accounting is keeping the data secure. It is easier to maintain the security of the data through software that is kept in digital records format.

Using the software can enable to use of the newer methodology in the accounts payable. You can learn the new methods of payables accounting to improve accounts payable process. Many businesses are finding the accounts payable outsourcing more convenient. It has helped achieve better efficiency in the accounting process.

Meru Accounting provides payables accounting services along with accounting activities. They use specialized software which can handle all the accounts payable activities along with accounting. They have experts in managing the accounts payable more proficiently. Meru Accounting is a well-known accounting providing agency with clients all over the world.