10 Most Common Accounts Payable Issues That Will Sink Your Business

You can go miles to find a perfect business but would never find one that is not struggling with Accounts payables issues and management. Managing the entire accounts department is an overwhelming task. It is overlooking difficult jobs, but the challenges slow you down. The challenges at times can become so overwhelming it seems like you almost lost the battle.

But is it that dreadful? Or can we find some solutions to it?

Problems with accounts payables can be tough to beat but not impossible. A bit of hard work and smartly pulled-out ideas can benefit your entire processes much more than you can imagine. It will help your accounts payable department to function better.

Following this article, we’ll be focusing on the top 10 disturbing issues you will face within your accounts payable department and solutions you can implement to prevent your company from sinking.

Let’s look at the top 10 Common Accounts Payable Problematic issues.

An average accounts payable department might face these issues regularly. To some, it might seem overwhelming, whereas others might have found their ways to deal with it.

Here is a compiled list of all the problems faced by an average account receivable account payable department.

1. Scattered Data Entry & Errors

Managing data is one of the most horrifying tasks for the employees of the accounts department. A slightly committed unknown mistake can land you into deep troubles. It is essential to identify, analyze and then carefully enter data into sheets to avoid errors. It is the actual money you’re dealing with, and you cannot leave room for sloppy work.

One of the best solutions you can find for your process is by entering into the world of online invoicing. The spoken about online invoice software work as a complete package for your business. They help you manage account receivables, payables, clients, and their information and even keep a tab of your activities to assist you further in the future.

2. Lost Invoices

Losing out on your client’s information and past invoices is the last thing you would ever want. But, the proximity of losing it out is high when you mishandle them. Wait! You don’t wish for it, but uncertainties follow you in life even if you don’t want them.

Invoices, once misplaced, can make you lose the entire track built of payments. You must think of ways to avoid it and maintain a healthy cash flow for your business. Opt for a cloud-based invoice system to save your entire communication in the cloud and access it however you like.

3. Unstable and undecided processing

When the company governs under an unstreamlined or un-unified process, the chances of errors are the highest. Setting up guidelines on paper will never work if the system does not accept them.

One of the biggest mistakes you’re committing here is leaving room for employees to set up their processes. It is not only hampering your results but the working environment too.

Uniformity in the entire process of the accounts department will help you avoid any harm to your money. Also, you’re leaving context to anyone who joins in the middle of the process to understand and work on the same lines without any loopholes.

4. Manual Processing = Delayed Results

Do you know? The world of business today is running after the one magical word, AUTOMATION! The reason being it automates so many recurrent processes. Thereby helping you achieve results sooner than ever. It helps in increasing productivity. For example, if an accounts department can manually process 1000 invoices in a month, an automated invoice software can help boost it to nearly 5000 without increasing the work burden.

5. The money you lose without even realizing it!

Each month you waste bombs of money without even realizing it. Then you worry about cutting costs! It is by small measures you can save money. You just need to think smartly. Labour and stationary costs add up to the most significant percentage of your money spent. Another issue comes up when the accounts department does not accurately record the payment and adds up by duplicating them. You might not get to see that money again unless the department catches the errors and take measures to rectify them.

The simplest you can do is give them a single shared dashboard to record and track and kind of payment received or paid. An online invoice system does the same job for you with intelligence that is unbeaten.

6. Insufficient Storage

Manual organization of records can be a game of left hand for you if you’re a perfectionist. Like most other people, when you’re not handling such big chunks of data, you can put yourself or your department under loads of pressure. It will take a tremendous amount of space in your rooms as well as your mind.

If you decide to switch to cloud-based invoice software, you will get an ample amount of space for all your data storage, and accessibility becomes easy.

7. Searching Amongst the hills of papers

Searching for records will become dreadful when you see piles of paper lying in front of you. It can make you spend days and nights finding one crucial document. Well, honestly, who has that much time to waste when all you can do is click, click, and found! Yes, that is exactly what online invoice software does for you. It lets you easily search amongst the records in minutes that you would have spent the night doing.

8. The task of creating exception invoices.

The processing of all invoices does not happen the same way. At some point in time, you will have to create invoices that are specifically customized for one particular client. It might take you longer than ever. But, you can compensate it by automating your process for creating regular invoices with invoice software. Artificial intelligence will work as your free-of-cost assistant in creating and managing invoices and other processes.

9. Inability to manage frauds!

One of the most common issues in accounts payable process is, Since the accounts department is the supreme power to decide the flow of the company’s money and its fate, it is the bullseye where many fraudsters target to hit. Most of the companies are unable to keep up with the preventive measures against fraudsters. Hence, fall prey to it.

Constant vigilance with tight control can help you prevent yourself from falling prey to any such activities. Technology allows you to fight against any such frauds smartly. You just need to set up custom controls and enforce company policies along with it.

10. Manual Follow-up is Unprofessional

Following up on invoices and late payments can be frustrating at the most. It interacts with clients on money and charges, which might escalate as a conversation that can spark issues. Discussing money and fees, again and again, can leave your clients wondering about your policies and trust.

Also, keeping a tab on each client manually will leave your employees overburdened and stressed at the same time.

An automated following up will unburden them with some monotonous jobs and focus on something more productive.

An automated recorded follow-up reminder does the same job for you, leaving a much more powerful impact on clients about your professionalism. It comes free with invoice software. You just need to set your messaging time. Your job is done! Now keep a tab of all your clients through the same window. Moreover, it highlights the clients that require your attention.