Accounts Payable Tracking Systems: Streamlining Your Payment Process

As a business owner or finance professional, you understand the importance of managing your accounts payable. Keeping track of outstanding invoices, ensuring timely payments, and maintaining good relationships with vendors are crucial for your business’s financial well-being. However, manually processing and tracking accounts payable can be a time-consuming and error-prone process.

Fortunately, there are software systems available that can automate and streamline your accounts payable tracking process. These systems can help you save time, reduce errors, and improve the accuracy of your financial reporting. In this article, we’ll take a closer look at accounts payable tracking systems, their features, and how they can benefit your business.

What is Accounts Payable Tracking?

Accounts payable tracking is the process of managing and keeping track of outstanding invoices, payments, and vendor information. This includes recording invoices, tracking payment due dates, and ensuring timely payments. An accounts payable tracking system is a software solution that automates and streamlines this process, making it easier for businesses to manage their accounts payable.

Benefits of Using an Accounts Payable Tracking System

There are several benefits to using an accounts payable tracking system for your business. These include:

1. Time-Saving

Manually processing and tracking accounts payable can be a time-consuming process. With an accounts payable tracking system, you can automate many of the tasks involved, including data entry, invoice approval and payment processing. This saves you time and allows you to focus on other important tasks.

2. Reduced Errors

Manual data entry is prone to errors, which can lead to incorrect financial reporting and payment delays. With an accounts payable tracking system, you can reduce the risk of errors by automating data entry and approval workflows.

3. Improved Accuracy

Accounts payable tracking systems use advanced technology, such as Optical Character Recognition (OCR), to extract data from invoices and other documents. This improves the accuracy of your financial reporting and ensures that payments are made on time.

4. Enhanced Reporting

Accounts payable tracking systems provide real-time reporting, which allows you to monitor your financial position and make informed decisions. You can track your outstanding invoices, payment due dates, and vendor information all in one place.

5. Increased Efficiency

Using an accounts payable tracking system improves the efficiency of your payment process. You can set up workflows for invoice approval and payment processing, assign tasks and responsibilities to team members, and establish payment terms for each vendor.

Features of an Accounts Payable Tracking System

Accounts payable tracking systems come with a range of features that can help you manage your accounts payable more efficiently. These features include:

1. OCR for Invoices and Receipts

OCR technology can be used to automatically capture data from invoices and receipts, reducing the need for manual data entry.

2. Fraud Detection and Prevention

Advanced fraud detection and prevention features can help protect against fraudulent invoices and payments, reducing the risk of financial loss.

3. Approval Workflows and Rules

Defining the approval process and establishing authorization rules can help ensure that invoices are approved in a timely and consistent manner and that payments are made according to the agreed-upon terms.

4. Automated Approvals

Automating the approval process can help streamline the approval of invoices and payments, reducing the time it takes to get invoices approved.

5. Tax Rate Recognition

Automated tax rate recognition can help ensure that the correct tax rate is applied to each invoice, reducing the risk of errors and improving accuracy.

6. Options to Assign Responsibilities

Assigning tasks and responsibilities to specific team members, such as who is responsible for data entry, approval, and payment processing, helps ensure that everyone knows what they are responsible for and creates a more structured workflow within teams.

7. Secure Data Storage

A dedicated data storage, for instance in a cloud environment, allows you to retrieve files when necessary. Thereby adhering to legal compliance regulations and accessing your data for possible audits.

8. Mobile Access

The ability to access the accounts payable system from a mobile device allows you to approve invoices and make payments from anywhere, at any time.

9. Multi-Currency Support

The ability to handle invoices and payments in multiple currencies is essential for businesses with a global presence.

10. Integration with Other Systems

Integration with other financial systems, such as accounting and enterprise resource planning (ERP) systems, provides a complete view of a company’s financial position and synchronizes your software for payment processes.

Best Accounts Payable Tracking Systems

There are several accounts payable tracking systems available on the market. We’ve highlighted some of the best options below:

1. QuickBooks

QuickBooks is a popular accounting software that includes accounts payable tracking features. It allows you to record and track your bills, set up payment terms, and automatically schedule payments. QuickBooks also provides real-time reporting and integrates with other financial systems.

2. Xero

Xero is another popular accounting software that includes accounts payable tracking features. It allows you to record and track your bills, set up payment terms, and automatically schedule payments. Xero also provides real-time reporting and integrates with other financial systems.

3. FreshBooks

FreshBooks is an accounting software that provides accounts payable tracking features for small businesses. It includes features such as expense tracking, invoicing, and time tracking. FreshBooks also provides real-time reporting and integrates with other financial systems.

4. Bill.com

Bill.com is an accounts payable tracking software that streamlines the invoice approval process and automates payments. It includes features such as OCR for invoices, automated approvals, and fraud detection. Bill.com also provides real-time reporting and integrates with other financial systems.

5. Klippa SpendControl

Klippa SpendControl is an all-in-one financial management software that includes accounts payable tracking features. It includes features such as OCR for invoices and receipts, automated approvals, and fraud detection. Klippa SpendControl also provides real-time reporting and integrates with other financial systems.

6. Sage Intacct

Sage Intacct is a financial management platform that includes accounts payable tracking features. It allows you to record and track your bills, set up payment terms, and automatically schedule payments. Sage Intacct also provides real-time reporting and integrates with other financial systems.

7. Airbase

Airbase is an accounts payable tracking software that streamlines the invoice approval process and automates payments. It includes features such as OCR for invoices, automated approvals, and fraud detection. Airbase also provides real-time reporting and integrates with other financial systems.

8. Tipalti

Tipalti is an end-to-end, invoice-based payment solution that helps businesses automate and streamline their accounts payable process. It includes features such as OCR for invoices, fraud detection and prevention, and multi-currency support. Tipalti also provides real-time reporting and integrates with other financial systems.

Conclusion

Managing accounts payable can be a complex and time-consuming process, but accounts payable tracking systems can help automate and streamline this process. By using an accounts payable tracking system, you can save time, reduce errors, and improve the accuracy of your financial reporting. There are several options available on the market, each with their own unique features. Consider your business’s needs and choose the system that best suits you.