With correct and current master data for customer and vendor contacts, you can use the power of digital technology to increase productivity in your accounting department, go paperless and automate business processes.
Validating master data for customers and vendors should be an ongoing process. You can use profile management technology to establish and maintain communications with your AR and AP counterparts at vendors and customers.
You need to establish a process for detecting issues in your master data, and how to handle them. If you have hundreds or thousands of customer and vendor contacts, trying to obtain and manage profile data on a manual basis would not be practical. It would draw your team away from working on high priority objectives.
Detecting Data Management Issues
The best method to use to detect issues with email addresses is to cross check a combo of TINs and email address against your master data to flag issues for follow up and resolution. It is better to search for issues on a regular basis than find out about them after they have caused a problem.
- If the TINs match, but the email addresses don’t match it’s either an error or multiple AR or AP departments in a larger company.
- If the TINs do not match, but the email addresses do match, it’s either an error or shared service across multiple companies.
- If the TINs and the emails match, then you’ve uncovered a duplicate.
- If the email address is a personal address, it means your counterpart is not using a best practice. It is always best to have department email addresses at your customers and vendors such as AR@ATCco.com and AP@LKSco.com. You can always add personal addresses for your contacts in addition to department email addresses.
In each of these situations, you should contact the other party and resolve the issue to avoid future problems.
Detecting data management issues in the accounting department is essential to avoiding errors, disputes, and unauthorized deductions. With a connected accounting solution for your AR and AP teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Digital Onboarding – Collect master data directly from your customers and vendors
- Accounting Inbox – Make it easy to divvy up work and track progress
- Smart Automation – Automate menial task with accounting integration
- Online Accounts – Give customers and vendors online access to their accounts
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstephq.com.