Accounts Payable is an essential part of a business’s accounting: it deals with creditors – all people and organizations that demand the business. The accounts payable department has several missions. Accounts payable automation includes entering and verifying supplier invoices and preparing the corresponding payments. In addition, invoices must be entered into the accounts. This occurs after their formal and factual verification through their allocation, i.e. their allocation to the appropriate accounts, their posting, and the corresponding payments.
What is Accounts Payable?
In other words: the accounts payable department takes care of the incoming invoices. For example, if a business employs a service provider or orders a delivery, the resulting invoices are in accounts payable. Depending on the company’s size, it may form its department or be part of the overall accounting task.
The orderly accounting of a company requires supplier’s invoices and payments that result are properly counted: the invoice amount must be credited “receivables.” The offsetting account is a debit expense account. On the other hand, VAT on turnover belongs separately to the deductible VAT account: the turnover tax is (thanks to the deductible VAT deduction).
Controlling supplier invoices is an essential task of supplier accounting. Mistakes that occur here can quickly lead to financial loss.
- Content verification
Does the invoice contain all the prescribed elements (for example, recipient’s address, date, invoice number)? Are these items specified correctly? This may seem like an exaggeration, especially regarding invoices from long-time business partners. We can tend to skim over the verification of this information because confidence is installed. A few businesses even send invoices informally as email attachments. However, when sending electronic invoices, care must be taken to take the correct security measures. As the second step of the invoice verification itself, the content verification falls into two parts.
- Verification of conditions
The accounts payable department works closely with the products purchasing department: do the cost and delivery conditions pointed out on the invoice correspond to what has been settled? Are the payment terms and other special requirements (e.g., a discount) correctly implied?
Synchronization with delivery by accounts payable software
Here, the acceptance of the goods and the recipient of the delivered goods or the service providers come into play: does the invoice correspond to the delivery note? Does the delivery correspond in quality and quantity to what has been agreed? Is the delivery complete, and did it occur on the scheduled date (possibly time)? Are there any complaints?
The accounts payable software helps companies simplify their Creditor process by automating billing, sending payments, calculating taxes, and managing small business creditor accounts.
Creditors are the counterpart to receivables, where the latter deals with customers known as debtors. On the other hand, for suppliers, the debtor is the company.
Accounts payable software automates the creation, export, and transfer of invoices for creditors or debtors. Accounting provides efficient billing automation options that help you manage both creditors and debtors.
The accounts payable software automates the creditor function in accounting software, and accounting provides user-friendly automation features for creditors.
Optimizing creditors for small and medium-sized businesses
Paid time series reports help you gain insight into your financial position. Save time by automating processes.
Improve labor productivity through accounts payable software
Manage customer credit status. Imposes credit limits and defines supplier groups, categories, and brands.
Continue to satisfy suppliers.
Make sure the supplier is happy to pay on time. Easy-to-understand reports make it easy to analyze and track how much money your business spends on multiple resellers.
Avoid administration time through automation.
Instantly clear your business transactions with accounts payable software using accurate and automatically entered banking information.