Generating invoices often requires up-to-date and transparent correspondence with employees and vendors. Keeping on hand such invoice data as paper, mail, or electronic document formats can be quite critical. It’s quite clear that streamlining of accounts payable processes drive businesses in ensuring optimum staff productivity alongside cutting down all chances of late and duplicate payments. With the kickstart of digitization, many vendors have initiated sending invoices electronically. This opens up newer opportunities in streamlining Accounts Payable workflows and electronic capturing which diminishes the requirement of scanning of physical documents.
Application of email automation and management solutions will help businesses in streamlining historical searches and accessing records as per the requirements of customer inquiry, management scrutiny, an audit, or lawsuits. This article is aimed to acknowledge readers the ways how disorganized email & correspondence can reduce Accounts Payable efficiency. OURS GLOBAL’s Account Receivable Outsourcing Services effectively manage AR collections and managing good client relationships, handling every accounting receivable process with optimum proficiency.
Miscommunications between accounts receivables operations are due to improper financial documentation. Such problems will quickly and unnecessarily cause tension with client relationships seriously impacting the positive cash flow. Financial reports shed light on approaches to attain positive cash flow and they advise not to use granular context for AR workflows. Most often such contexts are found in countless emails shared with staff and clients.
Following are the Five Challenges of Disorganized Email & Correspondence That Can Reduce Accounts Payable Efficiency:
1. Frequent Attachments in Business Correspondence Mails
Most of the business correspondence is driven through mails and most of them contain attachments. Even though email attachments are a novel addition to emails and a very advantageous feature enhancing rapid sharing and exchange of information. Email attachments dissuade its original intent causing confusion, frustration, inefficiency, and inaccuracy, losing innumerable opportunities. Management of correspondence mails with email attachments creates so many headaches. Incorporating enterprise content management solutions collaborate, coordinate and manage work projects effectively. Assisting professionals not to miss an edit or suggestion over varied document versions, such solutions can be quite beneficial. But attachments over different versions of the same document can also be massive amounts of storage space. Downloading such files will be disturbing for users with quick clogging up from large-sized duplicate files.
System congestion affects the operability and demands the requirement of file servers for accessing or saving their work files. Fully clogged servers will create problems in not just accounts payable departments but others too. Implementing larger storage sizes for clogged servers and strict limits over server sizes will charge business units for additional capacity. Businesses must take all customer correspondence as a business record or document and must have a clear view that correspondence isn’t related to the reference documents but the invoice number. Analyzing the limitations and backlogs of the current technologies and designing ways for better classification, filing, and archiving will also turn out to be fruitful.
2. Recognization of Accounts Payable Emails As Business Record
Identifying the emails related to accounts payable not as a business record is critical. Treating accounts payable emails as business records can cause discrepancies frequently that can take much time for resolving. Such emails may have incorrect, incomplete, and non-matching information, causing accounts payable departments to spend a lot of time dealing with it for resolving issues and tracking down missing information. Creating hassles among manual processes and inadequate controls will create unauthorized purchases.
3. Associating Client Reference Documents with Correspondences
Failure to properly associate with customers will lead to problems not just in sales pitching & customer serving but also in retaining old purchase information. Deteriorating the customer reachability and unable to resolve issues successfully will further cause negative business situations. Businesses must create serial numbers or references for all documents for differentiating documents and document types. With reference ID or number attached to all company documents, it’s quite easy for ordering and classifying them within the system. Differentiating from varied invoices, products, or service types, businesses can locate them much more efficiently.
4. Inefficiency in Record-keeping Practices
Unorganized and time-consuming classification, filing, and archiving will lead to an ineffective organization of records as per the functions to which they relate. The alphabetical file arrangement will find it harder for locating records and disperses records as per the related activities/functions throughout the filing cabinet or electronic folders. Ineffective functional classification will create hassles in the disposition process, records related to a particular function will have varying retention lengths.
5. Not Choosing Integrated Solutions
Reliable and integrated accounting software overlooks simple fast & straightforward data entry, faster sales & invoicing processes, automate report & analysis, reduces errors in recording transactions, etc. Helping businesses save money with valuable business insights. Even though integrated solutions are much costlier than a paper-based system, complex implementation, and requires annual maintenance & support businesses for successfully manage their accounts receivable processes with the same.
While attending to each of these challenges, small, medium, or big businesses must choose result-oriented approaches to help them assess and prioritize their accounting requirements. Appropriate email management and automation technologies will simplify capturing, processing, reviewing, and approval of AP documentation. Delivering positive outcomes of including context to email messages, central searchability, minimum processing time, optimum business continuity, discovery, and much more. OURS GLOBAL’s Accounts Receivable Services will achieve all said results with effective integrated correspondence management measures. Businesses that are in need of ideal Accounts Receivable services for extending all measures in integrating, tracking, and archiving of Accounts Receivable Operations in the best possible way.