Accounts Payable Approval Software

Accounts payable (AP) is one of the most important sections in the accounting department in a company, as it covers all payments made by the business.

As businesses evolve and companies increase their activities, the number of invoices ending up in the AP department also grows, which is why setting up in place protocols that ensure correct handling of payment documents is very important. One of these protocols is related to the accounts payable control process.

The best course to go through approving the payment of invoices is using an accounts payable control software. The solution proposed by PAID Analytix is an automated one, so that the whole procedure is completed in a timely manner.
 

Companies must deal with a great number of different vendors every day which exposes them to numerous risks, some of them related to fraud. This is why each invoice must be thoroughly verified before being approved and only after that paid.

The verification of a single invoice implies checking if it is correct and accurate, then the verification of the date it was issued and the one it is due for payment. The vendor’s details must also be confirmed and cross-referenced with the information on the invoice. These are all steps that should be completed as soon as possible for avoiding crowding and late payments, which is why many businesses decide to set in place an accounts payable invoice approval process. These can be further improved when an automated accounts payable approval software is used.

Traditional accounts payable processes are difficult to complete as they take a lot of time. Even if automated software is now taking over this sector, a new trend is using Artificial Intelligence in accounts payable audits. It is faster and more advanced compared to a traditional program used to detect various faults in the payment mechanisms. As part of sending reminders, suppliers can resend invoices. Because these invoices can be sent in different formats, including traditional mail and email, a consequence of this practice can be duplicate payments. These errors are quite common, however, they can lead to financial losses which on the long term will harm a company.


 

Medium and large-sized enterprises have specific accounts payable control processes in place in order to ensure the vendors and suppliers are paid accordingly. However, most of these procedures are time-consuming as they require verifications on multiple ends before an invoice is validated for payment.

Invoice controls usually imply:
 

The accounts payable invoice approval process starts when the company receives the invoice, which is then categorized and forwarded to the person or persons approving them which requires not only a lot of attention but also a huge amount of work and time.

This is why an automated accounts payable control software can be very useful for all parties involved in the process.
 

Each company follows specific steps when it comes to the invoice approval process, and the most common are:
 

PAID Analytix has designed an automated accounts payable approval software that can be used for supporting the control process and ensuring that only valid invoices are paid. Our solution uses Artificial Intelligence so that the entire accounts payable control process is completed in just a few minutes. Moreover, it can also signal inconsistencies so that errors can be corrected in time.
 

One of the best examples when considering a relaxed accounts payable invoice approval process is that of an employee in Oregon who embezzled no less than 4.5 million USD over 15 years by approving fraudulent invoices. We first recommend an accounts payable audit.

A recent study conducted on 200 accounts payable employees also indicates that:
 

If you want to test or have questions about our accounts payable approval software, do not hesitate to ask for details. We are at your service for detailed information that can be corroborated with accurate data, so do not hesitate to contact us.
 
Article by:
Radu Fertonea is the founder of Paid Analytix and Senior Manager with Executive MBA degree (Maastricht School of Management). He was director of operations at Societe Generale European Business Services, in charge with: Management of the Source to Report practice (Procurement, Accounts Payable, Accounts Receivable, Management Accounting) | Global redesign of end-to-end source to report activities | Consolidation of the Finance exercise for the European operations of Société Générale (100% coverage target by 2020) | Transition Management, Process Standardization and Continuous Improvement | People Management – team of 150+. With a broad experience in the financial field and after working with large societies which handle thousands of payments every year, came up with the idea which led to the creation of Paid Analytix.