Why you should be automating your accounts payables process!

Let’s face it, accounts payables aren’t glamorous. 

It’s a time-consuming, error-prone, manual task that no one really enjoys doing. 

Thankfully, automating this process can help reduce errors and save you time and money.

Here are my top tricks and tips on managing and automating accounts payables for your business:

1. Keep detailed records: rule of thumb, each transaction should have a receipt/bills/source document attached to it.

2. Create bills from email: you can upload bills manually, or you can send them via PDF, word, jpg and/or in excel file format directly from your business email address to your customised Xero bill email address. Your customised bills email address can be found in the bills overview section of your Xero file.

3. Xero app – If you haven’t already downloaded the Xero app, I highly recommend it. You can take photos of receipts and upload them to either bills or files, this is super handy if you’re always on the go!

4. Utilise Hubdoc or Dext – these are essential for large high-volume transactions.

5. Register for e-invoicing: receive bills directly to Xero, from other registered e-invoicing suppliers.

6. Xero ABA file: set up batch payments, allowing you to download from Xero and upload into your bank, seamlessly and securely while reducing errors.

7. Create repeat bills: perfect for recurring transactions and reminders.

8. Check suppliers’ ABNs – to ensure that you understand if your suppliers are GST Registered and how you should be recording your expenses.

Ensuring that your payables are processed correctly and efficiently and paid to your suppliers on time is vital to your business brand. No one wants to deal with businesses that can’t pay their bills on time. Secondly, paying your bills on time allows you to gain real insight into the financial health of your business.

Top benefits of setting up and automating your account’s payables in Xero correctly include:

1. Saving time

2. Improving accuracy

3. Reducing errors

4. Enhanced insight

5. Cash flow is optimisation

6. Improved relationship with suppliers

7. Fraud protections (boost security and peace of mind)

8. Increased transparency of data

9. Easy auditing

If you need help implementing systems and processes or just need some support with Xero, please feel free to reach out to our team at The Kartel Solution.