April 18, 2024

Business Bib

Business & Finance Blog

How To Be A More Proactive Accounts Payable Team

3 min read

In the world of business, getting a headstart and doing forward-thinking planning will give you a significant leverage. In a company’s accounts payable (AP) team, this value is specifically essential in creating a highly-efficient working environment — one that delivers quality output by employing cost-effective systems, e.g. Nexus accounts payable automation software.

Nonetheless, the demanding scope of work that the AP process requires — from processing hundreds of invoices on a monthly basis, emailing for and following up approvals, to completing the rather elaborate payment procedure — has prompted a vast majority of AP departments to become reactive; embodying the mentality, “we’ll cross the bridge when we get there.” The result? Missed opportunities to score early payment discounts, to further improve supplier relations, and ultimately, to drive over-all company growth.

Thanks to the emergence of AP automation tools like the Nexus accounts payable automation software, AP teams now have the chance to redeem themselves and become a more proactive force in their respective companies.

Perks of Having a Proactive AP Team

If you want to secure competitive advantages for your finance department, and your business as a whole, instilling the culture of proactiveness is key. Here are some of the benefits you will have:

Decrease in/ elimination of human errors

Avoidance of missed payment deadlines

Enhanced level of service from partnering suppliers

Increase in control over cash flow

Ability to perform audits more seamlessly

More accuracy in creating financial projections

Taking a Proactive Approach

It’s never too late to take a proactive approach in handling your firm’s AP process. We’ve listed below some steps you can do to transform your AP squad into a dynamic, motivated, and driven team:

Centralize all invoice processing in one system

Invoices come to an AP team in different forms and from a wide array of sources. To make sure all accounted for, centralizing them into on system or repository will enforce an efficient way of managing these important documents.

Automate your AP process, from procurement to payment

Tools like the Nexus accounts payable automation software help streamline taxing AP process. Offering a cloud-based procurement-to-payment solution, this type of software reduces human error and fraud and ushers in a paper-less approach in invoice matching, routing, approval, and payment processing. Automation also translates to better AP visibility and control.

Use real-time analytics in making sound financial decisions

Being proactive is all about being able to think forward, which is actually a core value in any finance team. If you want to make accurate projections and financial decisions, using real-time analytics is truly helpful. Use AP automation software to track spend data, discounts earned, delay in invoice approvals, and many more vital statistics.

Regularly check your supplier database

The supplier database is an important file for the AP team. This contains critical information like contract agreements and pricing policy to name a few. To fully maximize your relationship with these entities, and get the highest return on investment possible, your AP team must regularly check this database. Look for any sub-optimal pricing and make sure that every item in the agreement is delivered on time.

Nexus accounts payable automation software is engineered for real estate companies. It is a P2P solution that can surely save you and your business from headaches of a workflow that depends on papers and manual approval.