Accounts payable is one of the most demanded tasks in the business world. Every business requires a professional account payable who can reduce their workload and organize their payment processes. An account payable professional is required to prepare invoices and maintain accurate payable records. This helps the organization in building good relationships with their vendors and suppliers.
What is a professional account payable?
Account payable includes the short-term debt that is to be paid within a year. It is done by maintaining the proper records and analyzing the data. Account payable is considered a liability by many organizations. Therefore, it is important to manage accounts payable effectively.
Professional accounts payable are the ones who are experts and have prior experience in managing the account payable system. It is their responsibility to maintain the accuracy of accounts payable. With this, they have to establish and maintain good relations with the vendors or suppliers.
Understanding Invoice Processing
Before you move on to know the exact roles of professional accounts payable, you should get a brief idea of invoice processing. It is a series of steps that are done by professional accounts payable. It is a process of managing invoices and receipts for the payment process. It is a continuous and tedious process. Therefore, it is good to opt for accounts payable outsourcing services.
Steps that professional account payable follow for invoice processing
Following are the steps that every professional account payable needs to follow:
Step 1: Verification of details provided in the invoice
After completion of the services, the vendors or suppliers send their invoices for payment. It can be sent through mail or any other electronic means. The details on the invoice are then verified with the details on the receipt.
The details that need to be verified are:-
- General details like date, name, etc
- Service provided description
- Prices and taxes that need to be paid for goods and services
- GSTIN of the supplier
- Mode of payment
- Payment date
Step 2: Maintenance of the invoice
When the verification is complete, the invoice is recorded for the future accounting purpose of the company. The invoice maintenance should be accurate and handy. You can get access to the records whenever needed.
Manually maintaining records can lead to inaccurate results. Therefore, it is wise to choose virtual accounting services that will help you maintain accurate results without any inconveniences. Many invoicing software has made accounting easy. It has minimized the risk of numerous errors.
Step 3: Approval of the invoices
It is the responsibility of a professional account payable to get invoices approved once the invoice is all set to go. The invoice should be accurate so that the approval gets faster. It is important to get an invoice approved before making the payments. You can make use of software that gives the best accurate results and help you save much time and cost.
Step 4: Invoice payment
After the approval of the invoice, the vendors or suppliers are ready to pay. The payment is to be made on the specified date as per the agreed terms and conditions. You can get the payment through the agreed means of payment options and keep the payment details intact for future reference.
Conclusion
Now that you understand the role of professional accounts payable in invoice processing, it is important for you to clear the invoices on time. Delays or errors harm the relationship between the vendors or suppliers. Therefore, keep a close eye on the invoices and maintain their proper records for any future requirements.
Moreover, you can make use of an automated invoice processing system that will easily automate invoice processing and give accurate results. It would be best if you opt for outsourcing services to finish your invoice processing work easily and on time.
