Many companies have a seemingly endless number of vendors to pay in any given month. An endless number of vendors, of course, leads to an endless number of accounts payable issues.
In past years, companies hoping to overcome their accounts payable issues simply hired a few more accountants. Sure, their compensation package represented yet another dent in the company’s bottom line. But at least your business could then avoid the biggest accounts payable issue of them all: Conflicts with your vendor.
These days, much of the work can be automated using accounting software. If, however, your business is still stuck in the analog age, here are some of the major challenges you’ll likely face. We have a solution for your company, but we’ll wait until the end of the article—we don’t want to ruin the surprise.
- Slow or Inconsistent Accounts Payable Processing
Employees will typically respond to a daunting workload in one of two ways. They will either take shortcuts or quickly become overwhelmed. Neither response is ideal for your company.
Even companies with governing policies for employees about how to process accounts payable invoices struggle with consistency and speed. During busy periods, employees have a tendency to misinterpret policies. While this is understandable in the moment, it will make analyzing the records only that much more complicated down the road.
Unfortunately, the results aren’t that much better for those who do go by the books. Interpreting policies in the way a company intends often involves looping in managers from different levels of the organization. Their schedules are often packed, which only delays the process even further.
As you can see, the process is rife for human error. And it only gets worse.
- Manual Verification
Building a strong system of communication within a business can be exceptionally difficult. It seems almost impossible to always have a clear picture of impending deadlines and organizational initiatives.
None of this even begins to cover communication with stakeholders outside of the business.
But when working with accounts payable, it’s often necessary. Members of your team may need to contact vendors to ensure, for instance, that the invoice was completed correctly and received on time.
All of these calls and emails add an extra burden onto the shoulders of your teammates and has the potential to harm team morale. Poor interactions between your employees and those of your vendors can also damage your relationships.
- Opens Your Company Up to Scams
Funds exchanged between two organizations are some of the primary targets of thieves. And unfortunately, no organization is immune to this type of theft.
According to the Association of Fraud Examiners, 29 percent of small businesses and 18 percent of larger businesses have been affected by billing fraud. Whether it’s from check and payment tampering or hacking, many of the same businesses attributed their losses to a lack of internal controls.
Modern accounting software can help your team detect fraud. Not only can the software help your team monitor transactions with other organizations, but it can also give you the ability to restrict who can access various features of the platform. Generally speaking, the fewer people involved in the billing and payment process, the less prone it is to theft.
Now for the surprise: We can help with your accounts payable issues. As a licensed dealer of Sage products, we can create a custom accounting software solution for your company equipped with advanced accounts payable functionality.
Contact Timac Business Systems today for a free Sage Intacct demo!