Accounts payable holds the key to your company’s cash. There are only two ways for your company to increase the bottom line: increase revenue through sales or reduce expenses (or both). The accounts payable area is your last chance to control costs before money going out the door. Proactive management of accounts payable can save you significant amounts of money. In this article, which is part 2 of our 3-part Financial Tools Series (Read the overview of Financial Management Software here, Part 1 of the Financial Tools Series on Accounts Receivable here and Part 3 on General Ledger here), we’ll look at how Acumatica Cloud ERP can help businesses better organize and analyze their accounts payable processes.
What is Accounts Payable Software?
The accounts payable (AP) module of an ERP solution records invoices received from vendors for purchases of products and services. The AP system helps you schedule payments of those bills including issuing checks or other forms of payment. The efficiency of your accounts payable system directly relates to your organization’s financial stability and reputation. If you take too long to pay clients or vendors, it will reflect poorly on your brand’s reputation.
What Can Accounts Payable Do for My Business?
With Acumatica’s accounts payable software, you can monitor your cash flow by tracking all your outstanding invoice payments as well as available discounts, due dates and cash requirements. It is a cloud-based software so you can access your reports anytime, anywhere by opening a web browser. The software also automates receiving invoices from your suppliers and sub-contractors. This ensures timely and accurate payment to those creditors, which can improve your relationship with them.
Acumatica’s accounts payable software improves your staff efficiency by reducing the time needed to issue checks and prepare month/year-end reports. It also lowers payment errors including duplicate payments and eliminates vendor late fees. Reduced errors mean less time spent making corrections.
It can also help drive down costs by giving you access to reports that show how much your business is buying and who from. This provides you with the information needed to negotiate with vendors for better payment terms and purchase price. This also helps you decide whether to consolidate purchases to fewer vendors and gain price breaks or move purchases to alternate vendors if better pricing or terms are available.
Key Benefits of Acumatica’s Accounts Payable Module
- Avoid late charges and take advantage of vendor discounts by aligning payments with cash flows
- Eliminate manual payments of repetitive loans, rent and utility bills
- Take advantage of vendor early payment discounts
Streamline Invoice Approval and Payment
- Set up the process to automatically approve payment or follow an approval process to prioritize or delay payment before these documents are processed in the accounting systems and paid
- Designate an account to pay from or select a payment method
Faster Delivery, Fewer Errors
- Enter data more quickly with predictive entry and flexible screen layouts
- Reduce errors by setting default accounts, sub-accounts, payment terms and discounts by a vendor
- Improve vendor payment decisions by using drill-down reports and dashboards to gain access to past information and provide insights into future needs
Attach Source Documents to Invoices
- Streamline invoice approval and make it easier to resolve issues in the future
- When you receive source documents via email or scanning, they’re attached to the invoice for easy drill-down access
Think Acumatica’s Financial Management Software could be a game-changer for your business? Find out more here.
Have any questions about Acumatica or want to request a demonstration? Contact our team.
Remember, the company you choose to implement your software dictates the success or failure of your software investment. At Aqurus, we’re passionate about providing superior ERP solutions and support.