A small business that does not have a good and reliable bills and invoicing processing system is doomed to fail. Without apply the right AP solution for your small business you stand to lose a lot of your income, as well as the trust of your vendors and suppliers. Most small companies tend to take their accounts payable systems for granted thinking they can easily track everything down if they put all of the invoices in one place.
Sadly, many businesses go under because their owners mismanaged their AP systems. If you don’t want to be part of the “failed small businesses statics” here are some useful tips that will help you manage your bills and invoices better:
Tip 1: Get Organized
It may sound like common sense but you will be surprised at the amount of unfiled invoices and bills business owners tuck inside a drawer only to be left forgotten. The first thing you should do if you want to manage the invoicing and bill payment the best way possible is to take a moment to organize everything.
If you can afford to go automated with the AP solution, great! If you are not, make sure you file everything correctly with labels to match! A spreadsheet might be old school, but it a major upgrade from a drawer full of unpaid bills and invoices.
Tip 2: Set Up A Regular Payment Schedule
Look at all of your monthly expenses and divide every bill and invoice into two payment schedules. This way you can easily keep track with the bills you have paid and haven’t paid each month. Make sure to enforce this rule because you can easily get confused by making the wrong payments, even just once.
All of the confusion can easily be avoided if you upgrade your AP system and go automated instead. The software can arrange the payment schedule and ensure everything is paid early or on time, which can earn you early payment discounts from preferred vendors.
Tip 3: Set Up An Efficient Approval Process
Many delays in bill and invoice payments are due to the overly complicated approval process each invoice has to go through. Going from one department to another until it reaches the head of the company takes a long time and requires a lot of money too. An automated AP system solution will cut down the approval time and cost and will ensure that everything that requires immediate approval is brought to the attention of everyone.
By fully automating the approval of the invoice processing, the time it gets to file for payment and when the vendors receive their dues is significantly faster, which benefits everyone involved in the transaction.
There’s No Denying Automation
Accounts payable automation is the best way to ensure that the billing and invoicing system of a small business runs as smoothly and as efficient as possible. While the upgrade may seem like a very expensive investment at first, it will all be worth it in the end when the AP department becomes highly dependable. The change to an automated solution will bring a lot of benefits that your small business can greatly use to your advantage in the near future.
Nexus Systems provides an AP solution that has worked wonders for different brands across industries. Gain full control of your AP, contact us today!