When an organization expands, so does the complexity of its financial activities and parameters. For an accounting department, running a corporation in different locations poses challenges such as tracking and processing payments, preserving accurate records, fostering good communication across locations, and managing the numerous tax laws that vary from state to state.
How does an accounts payable solution work in multi-location?
It is exactly as the name suggests. The technical description of accounts payable is as follows: the role of managing invoice payments through a single, unified accounting system or department for multiple business entities.
If you have a franchise company or a small, specialized organization with many branches in various states, you probably have many distributors and suppliers paying at different locations if you have more than one location. In these circumstances, multi-location management is probably appropriate for your company. You’ll find multi-location accounts payable automation within the context of multi-location management.
What you look for in Automation Solutions?
When finding a multi-location accounts payable solution, the most important considerations would be the ability to construct roles-based views and manage real-time data. The best approach should be combined with your existing central accounting system and the whole AP workflow simplified.
You should consider the following when contemplating a new account scheme of automation payable by a multi-enterprise:
- Ability to delegate individual users only to their designated organizations – to restrict visibility
- Assignment of position for the particular GL segments
- Reliable data collection supporting different locations
- For invoice submission, use various email addresses
- Capability for dynamically code invoice detection
- Basic search and routing based on individual pages
Starting New vs. Upgrading Your AP system
Production of the multi-location AP system requires multi-location accounts. When you want to expand your business to several places, you will need to do your research to find the best way to support your financial management profile changes. In this case, you have two choices: seeking effective account management tools or investing in the accounting department’s growth and development.
You may also need to update your accounting software if the AP’s production is delayed due to inefficiencies in your current accounting system. If you find this valid, the correct automation program for the payable accounts will help to unify your locations into one unified system.
Payments Automation for Multi-Entity Accounting
Financial demand and overhead costs in a sector are rising and expanding. As the corporation introduces new businesses into life, it becomes more difficult to keep track of data and business lines. For centralized payment processing, it is necessary to remain organized and efficient. Your company will expand without increasing the accounting department with multi-entity accounting and a centralized automation system that also provides OCR data capture that supports locations.
Multi-entity accounting is one of the most significant considerations because it provides financial leaders and controllers with centrally observable accounting in all locations and entities. If finance leaders can see the whole process in one position, risks and mistakes can be mitigated, and it is possible through accounts payables management system.
DHRP’s Dynamics 365 AP Automation
As you may have already read, the AP’s automation will reduce the workflow of invoice processing time, costs, errors, and fraud risks. If you are looking forward to implementing the ERP account payable automation, let the DHRP team take you through the process and offer the best practices for integrating the system within your organization.
