End-To-End Accounts Payable Process: Four Easy Steps to Follow

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End-To-End Accounts Payable Process Four Easy
Steps to Follow
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Introduction

• Every business needs to manage its accounts
  payable (AP) to maintain its cash flow.
• Most of the businesses fail to manage their AP
  because they do not follow the right procedure.
• Businesses need to understand the end to end
  process of accounts payable that helps them in
  managing their upcoming payable.
• The accounts payable process includes four major
  steps that every business should follow for
  smooth functioning.
• These steps include invoice capture, invoice
  approval, payment authorizations, and payment
  execution.

Read More https//www.mixbit.com/accounts-payable
-process/
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Invoice Capture

• Whenever you receive any invoice through email,
  regular mail, fax, or through the vendors
  website portal, you need to insert that into your
  accounting system first.
• If you are following the manual process for data
  transfer, there are high chances of errors, and
  numbers might get manipulated.
• The manual process can also slow down, depending
  on the complexity of reconciling invoices with PO
  (Purchase Orders).
• It is advisable that you automate this process
  and ease your first step.

Read More https//www.mixbit.com/accounts-payable
-process/
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Invoice Approval

• Once the invoice is received by the company, and
  inserted into its accounting system, it needs to
  be routed among the business department that
  utilized the vendors products or services.
• To verify the delivery of the product or services
  mentioned in an invoice and to confirm the time
  it has arrived to sort out the payment issues.
• You need to confirm the invoice information
  through multiple people before it arrives at the
  person who is going to sign off on the approval,
  and this might drag the invoice payment process
  to weeks.

Read More https//www.mixbit.com/accounts-payable
-process/
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Payment Authorization

• When the accounts department approves the invoice
  after all the confirmations, it now needs to go
  to the finance team, and eventually the CFO or
  the controller who is going to authorize the
  payment needs to check and issue the final
  payment date.
• This step can also extend the timeline if the
  authorized person is not available or they have
  limited access to their emails if traveling.
• Automation allows businesses to decrease the
  manual process of inserting invoices into the
  accounting system.

Read More https//www.mixbit.com/accounts-payable
-process/
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Payment Execution

• Once the payment is authorized, the invoice will
  travel to the person who will make the online
  bank payment or cut the check for the vendor.
• If the due date is not clearly monitored, then
  there are high chances the company will miss the
  payment deadlines and lose out on early-bird
  discounts.
• It is very important that the company follow
  their accounts payable process after monitoring
  the due date.
• Manually managing all these four steps raises the
  chances of human errors, drag on resource time,
  limits the visibility of invoice payment, and
  limits control over short-term transactions.

Read More https//www.mixbit.com/accounts-payable
-process/
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About Us

• MixBit is a knowledge-sharing platform for
  invoicing software, invoicing challenges, and
  invoicing resources.
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• Blog URLblog.mixbit.com
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