Reconciling supplier statements is an essential process that allows you to ensure that your books are balanced effectively and accurately. As it is such a crucial accounts payable process, preparation is key. But, what can finance teams do to better prepare for supplier statement reconciliation? Let’s take a look.
- Take time to really know and understand suppliers
Every supplier is different – each one will likely invoice you differently, prefer you to pay via a different method, and have a different billing date. They will also each have a preferred method of communication, be it telephone, email, or even text.
By really understanding each one of your suppliers as individuals, this will make the process of reconciling statements much more efficient, as you will know their businesses just as well as you know your own.
- Automate your financial processes
In the digital age, automation is key to streamlining business processes. In fact, one study from 2017 estimated that automation can save 6 weeks of time per year, based on a 40 hour work week, or $4 million annually.
There are a few ways in which automation can help you to prepare for supplier statement reconciliation – from automatic electronic invoice payment, to automated workflows.
- Even better, combine automation and AI-powered technology
Even if you automate your financial processes, you may still need to undertake your reconciliation manually. This can lead to potential human errors, and can take a lot of time and effort. Instead, you might consider a fully automated, AI-powered supplier statement reconciliation software.
Your statements can be automatically uploaded into the software, which is then read by the AI-technology to determine the key information. The statements are then automatically matched against invoice data, producing an accurate report of any potential issues, errors, or discrepancies – all without you having to do a thing.
Such technology can also allow you to track reconciliation activity in real time, instead of having to manually (and inefficiently) search for the information yourself.
- Understand what your business wants to get out of the process
Of course, the main goal of supplier statement reconciliation is to ensure that all your statements match the corresponding invoices. However, the process can also give you other insights that you can use to improve your business.
The key here is to carefully consider your goals as a business, and see how the supplier statement reconciliation process can shed light on what you need to do to better reach your business objectives.
- Improve communication between your business and suppliers
Communicating effectively with suppliers is essential for maintaining relationships, and retaining their services. It will also help you with reconciling supplier statements, as you can ensure that everyone knows everything that they need to know, when they need to know it.
Don’t be afraid to reach out to suppliers if something seems awry with any statements or invoices. Having an open conversation between businesses will allow you to agree on a resolution that suits you both.
Overall, it is important to remember supplier statement reconciliation never really ends – it should be a continuous process. With these tips in mind, you can effectively prepare for the process, streamlining it to ensure maximum efficiency.
