Accounts Payable Software Buyers Guide
Last updated: September 26, 2023
Have you ever misplaced an important account that needed to be paid urgently? The repercussions of not paying an important service provider can be detrimental to any business. Most accounts have a certain payment period and if you lapse for whatsoever reason, the company may be severely punished with interest or penalty fees.
It’s human to err but the business world can be so unforgiving when you do. To avoid mishaps happening why not consider accounts payable software that will ensure you’ll never miss a payment? It does the thinking and manages reminders for you to ensure a seamless process.
Most businesses are turning to accounts payable software or integrated financial software that includes other fundamental modules such as the general ledger and accounts receivable. Does your business have a more complex accounting condition and need a standalone solution? Look no further as we unpack the different features of AR software that are offered as a standalone solution.
The Key Features of Accounts Payable Software
These are some of the general features you must look for in any account payable software:
- Reporting: You'll find a rich display in a visual format of the accounts payable information. It's usually displayed in a dashboard-style for easy interpretation. Your key performance indicators and other important functions will be highlighted for quick extrapolation.
- Secure fund transfer: You can safely and securely do electronic funds transfers in the software solution between various bank accounts.
- Invoices: Tired of compiling your invoices? This software does the work for you by compiling, printing and sending your invoices. It's also able to send it in compatible formats such as .DOCX and PDF for convenience.
- Service providers: Your business likely has several vendors that supply goods and services to your company, right? AR software manages and ranks key information of all your vendors’ accounts.
- Forms: It processes 1099 forms for your independent contractors you do business with as well as freelancers.
- Automated process: It automatically collects and receives transactional data such as receipts & other information. Then it stores it in your general ledger for up to date account data.
Some Considerations To Reflect On
Some other important questions to reflect on and answer critically will help you ascertain what kind of software you need. Let’s look at some prominent questions you should ask.
What’s Your Business’s Growth Trajectory?
It’s important to understand how quickly your business will grow and if you’re planning to venture internationally. If so you’ll want to invest in a system that’s able to scale and evolve with your business. Another important consideration is to check if your software solution complies with the regulations and laws of international accounting practices.
Do You Operate in a Niche Industry?
Evaluate if your business deals with a particular niche industry that requires a more specialized software solution. Most accounts payable software solutions can fit several industries as the needs are similar across industries.
But there are unique scenarios too. If for example, you operate a distribution company you'll need accounting software that can help with aspects such as tax compliance for international fuel. These are the intricacies that need to be assessed before purchasing an AR solution.
Do You Need More Than Simply Accounting Software?
It’s important to check if your needs extend beyond only an accounting software solution. Perhaps you need an integrated solution that can offer functionalities such as a CRM system and human resource management. Keep in mind integrated solutions might lack advanced features found in standalone accounting software only. Assess wisely what your business needs.
How To Successfully Implement Your Software
Setting up and implementing a system can sometimes be tricky. These easy steps can guide you during implementation:
- Firstly you’ll have to decide which accounts payable software solution you’ll purchase
- Next, you can now set up your supplier database with all their relevant information
- Enter all your invoices into the system paying special attention to the invoice date
- Set up a system where managers can either approve or reject invalid invoices
- Do a mock-up and schedule payments to suppliers
- Schedule payments on the system and verify that all invoices in a specific date range are included
- Do a test run to check that the system is running correctly
- Assign two people to verify and sign off the checks for quality assurance
Plans & Pricing
Most accounting solutions are offered as either a monthly subscription or you pay an upfront fee to obtain a perpetual license. A perpetual license allows you uninterrupted service and you only pay annual fees towards maintenance, updates & support.
The factors that determine what price you’ll pay include:
- Size of your organization
- The complexity of your accounting needs
- Your unique product requirements
Prices can range from one service provider to the next. You can start with a package from as little as $9 per user monthly from Tallie. Or you can pay as much as $1000 for a complete package from AP Centre per month. There are many service providers to pick from that offer competitive rates. You simply need to determine how much you need at what rate.
Conclusion
No business can afford to taint important supplier relationships. Missing even one account can ruin a good standing relationship. It’s simply not worth the risk.
Accounts payable software takes the risk out of managing your suppliers’ accounts. It systematically organizes your data to ensure through automation and technology you’ll never miss a payment. It also stores your information safely to track and record it efficiently.
If you decide to invest in accounts payable software solutions for your business you're investing in more than simply software. You’re gaining a valuable tool that will enhance the way you do business.
Leave a comment below and let us know what your challenges have been while managing accounts payable.
