Working in the AP department isn’t a very popular job option for many. Typically because the employees of the accounts payable department are always busy with everything from payment processing to procurement, but go unnoticed by the rest of the company. Despite the job being unglamorous, every company needs a well-oiled and highly efficient AP team to function properly and earn a profit.
Sometimes when the department isn’t functioning properly, there might be a need for an automated accounts payable solutions. These are the common symptoms that your AP department needs an upgrade:
#1: Time-Consuming Invoice Processing
The stack of invoices that pile up can take its toll on the entire AP department. Relying on a manual system can result in as much as a 14-day processing time which lowers the department’s productivity. A switch to an automatic system can cut down invoice processing time significantly.
#2: Inefficient Assignments
Both manual and semi-automatic AP systems create more work than necessary. When the time comes that a single employee is assigned to process one supplier, it is a clear sign that your current AP system needs an upgrade.
#3: AP Inconsistencies
A manual AP department will hand out thick manuals to every member and expect them to follow every detail. Consistent output without automated accounts payable solutions is near impossible. There are too many risks and the possibility of theft and fraud when the AP systems are inconsistent.
#4: Duplicate Payments
One duplicate payment may not seem like a big problem, but when they pile up your company cannot stand to lose a substantial amount. Human errors can lead to duplicate payments, but with an automated system, the program can detect any anomalies and prevent these basic mistakes.
#5: Consistent Late Payments
In business, it is necessary to maintain a good relationship with vendors and suppliers. An AP system that is always late means you are risking the respect and loyalty of the vendors. Avoid the nuisance of late payments by going automated soon.
#6: Fraudulent Invoices
When the paperwork is piling too high, the chances of paying fraudulent invoices become higher. Humans cannot spot these fake invoices fast enough and the company can lose a lot of money in the process. An automated system can easily detect these fake invoices and flag them for inspection.
#7: Low-Quality Financial Reports
There are several cases where overworked employees rush the creation of important financial reports. This can lead to several costly decisions which can harm the entire company. With an updated automated AP system, the reports created are always accurate and high-quality resulting in better financial decisions.
Symptoms Or Not, It’s Time To Upgrade
Waiting for these symptoms to pop up is a big mistake because it can cost your company a great deal of money. Examine how the AP department is performing and begin the transition to an automated AP system as soon as possible to avoid any future financial trouble. The sooner you make the changes, the better it will be for the entire company.
Are you seeing signs your AP system is in trouble? Let Nexus Systems show you automated accounts payable solutions that can help you get your AP workflow in the groove. Contact us today for a demo.