How to Streamline your AR and AP Process
I still remember how overwhelming AR and AP processing is before, from paper invoices coming from the mail, forwarding to different departments for validation and approval, recording the transaction (to the spreadsheets!), receiving a cheque then going to the bank to deposit or issuing a cheque for payment then send it to mail, etc. Surprisingly I can still see this practice in some companies I went through…
Manual processing is so yesterday! The age of automation began in the 1980s with the advent of desktop computers and over the years the technology revolutionized our world and daily lives. Technology has created amazing tools and with all these revolutions, it made our lives easier, faster, better, and more FUN!
While some companies are often reluctant to change their processes, I suggest you to do it now and have your lives get better and I am also assuring you that it will save you time and money, and it will reduce errors on the process.
Here are some tips how to automate your AR and AP process:
- Digitize your documents – This will save you time to find the documents you’re looking for and save you space on steel cabinets too. It’s also worth mentioning that you are helping the environment by using less paper.
- Use the “cloud” based storage system so that you can easily share the documents needed for review and approval.
- Sign up your bank accounts to online banking and take advantage of receiving and transferring the funds in real time.
- Get automated machines such as handheld bar code reader, scanners, and even smart phones.
- Get a good accounting software that can accommodate your digitized/automated system