Automating accounts payable (AP) invoice process will not only provide real time insight into the data but also allow AP staff to quickly review, process, and pay invoices on time. Reducing processing and payment turnaround times to enable companies to take advantage of early payment discounts and streamline the process to get better deals with vendors.
Having AP invoice policies in place ensures that invoices are processed on time, and payments are made in a timely fashion. Although around 95% of businesses have written policies in place, these policies are not always enforced or followed.
By not enforcing policies, invoice processing can be dragged out for several weeks, thus resulting in payment delays and ineffective cash flows. Moreover, without policy enforcement, tracking and managing account payable invoices becomes difficult. Not having strict invoice policy creates confusion and adds more risk for companies.
Monitoring invoice process and AP performance is another major concern for the AP department. Around 50% of businesses use accounting software to track and measure performance. Automated solutions are highly valuable to track the performance of the AP department and invoice process; still, some firms monitor cash flow using analytics. Manually tracking or monitoring cash flow will inevitably result in lost funds and a costly invoice process; not to mention how difficult it is to manually calculate the cash flow for the entire month.
The automated AP solution will eliminate the need for manual auditing and policy enforcement. Also, the solution provides extensive analytics to allow you to make informed decisions about AP procedures. In addition, the automated solution will allow for easier policy creation and enforcement via policy controls. This would help better align spending and employees can easily review and approve vendor invoices for payment.
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