Service Description

Efficient purchase ledger management is essential for businesses with £0m-£10m turnover to ensure accurate tracking of payables, maintain strong supplier relationships, and optimize cash flow. Below is a detailed process design tailored to meet these requirements, along with recommended software and add-ons. Process Design Steps: Supplier Setup and Management Collect supplier details, including bank details, payment terms, and VAT registration. Validate supplier information to avoid fraudulent accounts. Create and maintain a supplier master file in the accounting system. Assign unique codes for each supplier to streamline identification and reporting. ** Purchase Order (PO) Creation * Implement a purchase order system for approvals and tracking. * Ensure each PO includes details such as supplier name, description of goods/services, quantities, agreed pricing, and delivery dates. * Use an automated approval workflow for PO authorization to improve internal controls. * Invoice Receipt and Matching Centralise invoice receipt via a dedicated email inbox or document upload portal. Match invoices with purchase orders and delivery notes (three-way matching) to ensure accuracy. * Flag discrepancies for resolution before payment processing. Invoice Approval Workflow ** Set up an approval hierarchy based on invoice value or type. ** Automate reminders for pending approvals to avoid delays. Data Entry and Coding Use optical character recognition (OCR) software to extract data and reduce manual entry. ** Ensure accurate coding of invoices to the correct cost centres, GL accounts, and VAT rates. Payment Processing Set up payment runs based on supplier terms and cash flow considerations. Use batch payment files (e.g., BACS, Faster Payments) to process payments efficiently. Notify suppliers of payments via automated remittance advice. Reconciliation Reconcile supplier statements monthly to ensure all invoices and payments are accounted for. Investigate and resolve any discrepancies promptly. Reporting and Monitoring Generate aged creditor reports to monitor outstanding liabilities. Review payment terms and identify opportunities for negotiation or discounts. Track KPIs such as invoice processing time and payment accuracy. * Standard only ** Enhanced only Please note the booking time is an appointment for the onboarding call only, the work will be undertaking following this call within the agreed timeframe.