![]() Invoice processing is a range of operations associated with purchasing products from suppliers. It involves getting demand from the production department, placing an order with the supplier, receiving an invoice, approving it, getting the supplies, making payments, and recording it in the books. Companies must have proper invoice management functions to ensure streamlined operations. However, it is challenging to handle these activities in-house. There is room for errors, discrepancies, and fraudulent activities in in-house invoice processing. Avoiding such situations requires firms to consider alternatives. Choosing to outsource invoice processing services is a feasible and cost-efficient option. From all the economic sectors, e-commerce firms have a distinct invoice processing function. The e-commerce industry has an online supply chain, with minimal physical contact with suppliers, customers, etc. In such cases, maintaining favorable relations becomes a responsibility of the ecommerce accounting functions like invoice processing, accounts payable, etc. All these activities are interlinked. These operations need to be optimized to ensure high productivity with minimum efforts, resources, and costs. The procurement department focuses on maintaining sustainable relations with vendors and getting the actual product, whereas the accounting staff focuses on the transactions. The purchase trade forms the bloodline for suppliers as they rely on it for their sustenance. Therefore, the invoice payment processing function needs minimum friction and maximum returns. Businesses looking to outsource invoice processing need to know how to streamline the activity. The following approaches can help in this regard: Integrating e-commerce and operational AP: Many businesses follow a split pattern of invoice processing and management, meaning they handle the supplier invoices distinct from rent, utilities, and other bills. It leads to complexity and duplication. Merging the two parallels can help firms considerably. Businesses can manage the two under one digital window, with every invoice having its unique properties. Capturing the invoice digitally, uploading it on the software, and forwarding it to a single payment process will benefit firms. Map out the supplier invoice workflow: Businesses must outline how their current supplier invoice workflow works. It involves numerous activities like checking and verifying the supplier identity, due dates, invoice owner, payment methods, shipment or delivery information, early payment offers, discounts, etc. Mapping the workflow indicates the points for optimization. Accepting invoices in a digital format recognized by OCR (Optical Character Recognition) technology saves time. Driving the routing, scheduling, and preferred payment mode process is critical to streamlining the operations.
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AuthorWhiz Consulting provides bookkeeping & accounting services for UK-based businesses. We provide outsourced accounting, bookkeeping, payroll and taxation services to Birmingham, London, Manchester, or other parts of the United Kingdom. We provide services to all businesses irrespective of the scale of operation and industries like real estate, hospitality, healthcare, e-commerce and so forth. We have accounting solutions for every business, with the experience and knowledge of all the popular accounting tools. We will assist your businesses in managing cash flows, financial statements, bank & day to day transactions record-keeping, and monitoring the overall expenses made by the business. We will ensure your books are kept neat and reconciled throughout the year. We provide our services at a competitive cost as compared to hiring local or in-house bookkeepers and accountants. |