Functions and importance of the accounts payable department
Posted: Wed Dec 18, 2024 6:38 am
Accounts payable are commercial credits granted by the company's suppliers and creditors for the development of its economic activity. In large companies, the accounting and management of these accounts is usually grouped together in the accounts payable department.
We explain how the accounts payable department works.
Learn the main functions of the accounts payable department and the software they use to optimize their operations.
Accounts payable are a form of interest-free financing for companies , so their proper management is essential for the financial balance of the company .
However, companies must comply with Law 15/2010 , of July 5, which establishes measures to combat late payments in commercial operations. This regulation democratic republic of the congo email list
specifies that they must not delay their payments for more than 60 days .
Functions of the accounts payable department
Correct and timely payments are an indicator of a company's solvency and seriousness . For this reason, the accounts payable department must seek a balance between obtaining financing from its suppliers and punctually fulfilling its payment commitments.
They may end up being transferred to lists and forums of defaulters, which can make it difficult to acquire future goods and services, thereby strangling business activity.
Companies must also expressly publish information on payment terms to their suppliers in their annual accounts report.
1) How to segregate administrative and accounting functions in a large company?
The way accounting is carried out in large companies that use ERPs, together with one of the principles of internal control, which is the segregation of functions for fraud prevention , causes the tasks of large administration departments to divide the tasks to be performed mainly in the following way:
2) How to optimize the accounts payable department with technology?
The implementation of administrative process automation technologies significantly affects the accounts payable area. This department can use different types of software to optimize the administrative and accounting management of the company.
The correct digitalization of received invoices and their accompanying documentation, as well as the use of OCR (Optical Character Recognition) systems for reading invoices and other documents, provide a competitive advantage to companies that efficiently manage their invoices to be paid .
Automated invoice approval workflows. The automation of invoice management and approval processes seeks to maximize the efficiency of the procedure and reduce the costs associated with the process. Savings can be considerable if management is carried out correctly.
Receipt of electronic invoices . Digitalized invoice management, as well as adaptation to the receipt of electronic invoices , optimizes invoice management in accounts payable departments. One of the systems that allow the electronic exchange of data integrated into commercial documents is the EDI (Electronic Data Interchange) system .
We explain how the accounts payable department works.
Learn the main functions of the accounts payable department and the software they use to optimize their operations.
Accounts payable are a form of interest-free financing for companies , so their proper management is essential for the financial balance of the company .
However, companies must comply with Law 15/2010 , of July 5, which establishes measures to combat late payments in commercial operations. This regulation democratic republic of the congo email list
specifies that they must not delay their payments for more than 60 days .
Functions of the accounts payable department
Correct and timely payments are an indicator of a company's solvency and seriousness . For this reason, the accounts payable department must seek a balance between obtaining financing from its suppliers and punctually fulfilling its payment commitments.
They may end up being transferred to lists and forums of defaulters, which can make it difficult to acquire future goods and services, thereby strangling business activity.
Companies must also expressly publish information on payment terms to their suppliers in their annual accounts report.
1) How to segregate administrative and accounting functions in a large company?
The way accounting is carried out in large companies that use ERPs, together with one of the principles of internal control, which is the segregation of functions for fraud prevention , causes the tasks of large administration departments to divide the tasks to be performed mainly in the following way:
2) How to optimize the accounts payable department with technology?
The implementation of administrative process automation technologies significantly affects the accounts payable area. This department can use different types of software to optimize the administrative and accounting management of the company.
The correct digitalization of received invoices and their accompanying documentation, as well as the use of OCR (Optical Character Recognition) systems for reading invoices and other documents, provide a competitive advantage to companies that efficiently manage their invoices to be paid .
Automated invoice approval workflows. The automation of invoice management and approval processes seeks to maximize the efficiency of the procedure and reduce the costs associated with the process. Savings can be considerable if management is carried out correctly.
Receipt of electronic invoices . Digitalized invoice management, as well as adaptation to the receipt of electronic invoices , optimizes invoice management in accounts payable departments. One of the systems that allow the electronic exchange of data integrated into commercial documents is the EDI (Electronic Data Interchange) system .