March 21, 2024
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Navigating the world of Accounts Payable (AP) often feels like trying to spin plates, with so many moving parts that can go wrong. This guide walks through six common pitfalls within AP operations and looks at how we can either avoid, or overcome these challenges.
1. Approval Bottlenecks: Don't Blame the Approver, Blame the System
Ever felt the frustration of a delayed project because someone somewhere hadn't approved an invoice? Approval bottlenecks are an all-too-familiar issue holding up both spend requisition and invoice payments. Poor user experience and friction in the approvals process are often the culprits in these bottlenecks. Kloo rethinks approvals by enabling approvers to either accept or reject expenses directly from their email inbox, without the need for logging into the AP system. Approvers are supported to make quick but informed decisions with AI-generated insights, such as budget adherence impacts, directly within the approval email.
2. Maverick Spend: Reigning in the Rebel
Sometimes the process of purchase requisition is so daunting and slow that those requesting spend decide to ask for forgiveness rather than permission. This can cause real issues for a company's bottom line, leading to over-spending and poor financial control and forecasting. User-friendly interfaces and efficiency processes are essential to ensuring employees follow AP best practice. Kloo offers email-based natural language purchase requests, allowing users to request spend straight from their email inbox in their words: no logging in and no lengthy forms.
3. Payments: Keep It In-Platform, Keep It Simple
The old-school method of generating BACS files for payments involves a number of steps and logins to different banking and accounting systems. Kloo simplifies life with in-platform open banking payments, turning what used to be a chore into a click of a button.
4. Inefficiencies in Financial Reporting: Finding the Needle in the Haystack
With many accounting systems and ERPs there reporting still entails manual requests for financial reports, which are often delivered as cumbersome Excel files. Kloo's AP Analytics feature provides instant, actionable insights, enabling a better understanding of current and projected budget compliance, cash flow, and supplier relationship health, directly within the platform. AP Analytics also allows users to query their data in natural language to get a specific response. 
5. Establishing a Clear AP Audit Trail: The Detective Work
Building a comprehensive AP audit trail can sometimes feel like detective work, piecing together clues of unauthorised spending and unmatched invoices. Kloo fully automates this process by encouraging AP best practice with user-friendly features, leveraging AI for precise invoice matching, and ensuring every payment is tracked within the platform.
6. Data Inaccuracies and Manual Errors: The Unwanted Surprises
Manual processes inherent in traditional AP operations are prone to errors, leading to issues such as delayed payments and inaccurate financial records. Kloo brings order to chaos by standardising AP processes, automating workflows, and using smart tech to catch errors before they become problems.
Key Takeaways:
Navigating the complexities of Accounts Payable can often feel like a daunting task. Yet, this guide illustrates that with the right tools, such as those offered by Kloo, these common pitfalls can not only be avoided but turned into opportunities for streamlined efficiency and improved financial oversight. Kloo's innovative approach, from email-based approvals and natural language purchase requests to in-platform payments and AI-driven insights, ensures that the AP process is no longer a source of frustration but a smooth, well-oiled machine driving your business forward. With Kloo, overcoming the hurdles of AP becomes a less arduous journey, paving the way for a more organised, efficient, and error-free financial operation.
