Many businesses still follow traditional methods of managing accounts payable processes. Manual processes consume more hours and are erroneous, requiring diligence and attention to detail.
The four major pain points in accounts payable processes are:
· Invoice capturing and data entry
· Invoice approvals
· Invoice-PO matching
· Signing paper documents including checks
Accounts payable is a painful process for most companies, but it doesn’t have to be that way with automation. Automation can decrease costs while increasing process efficiency. Studies revealed that best-in-class businesses use accounts payable solution to simplify AP operations.
Here’s how AP software can help you:
Invoice Coding and Capturing Simplified
Invoice capturing is a core part of the accounts payable process. The manual data entry increases errors, which includes typos, duplicate entries, and missing fields. These errors will cost both time and money and impacts your relationship with vendors. And, the time spent on identifying these errors could be put on productive tasks.
With AP software, invoices are captured automatically, and Optical Character Recognition technology ensures 99% accuracy during invoice capturing. The solution can flag duplicate invoices before entering into the accounting system. Automation improves productivity levels and minimizes errors and saves time spent on invoice reconciliation.
AP software routes invoice to the appropriate approver(s). Approvers will receive 100 emails per day; they might miss some invoices out of shuffling their inbox. The best way to avoid this problem is through automation. Accounts payable software automatically documents all approvals and stores in a centralized repository.
This makes it easy to find all records during audits. Also, businesses can define invoice routing rules to assure invoices are routed to the invoice approver.
Matching Invoices to Purchase Orders
Matching invoices to POs requires attention to detail and takes a lot of your time. Unmatched invoices create costs and negatively impacts relationships with vendors. This type of process hinders business growth.
PO matching compares invoice details with PO data using matching mechanisms.
Automation flags any issues concerning data and matching criteria can be set to vary tolerance levels on discrepancies. If the data entered is within the range of tolerance level, it will not be flagged as a discrepancy. This way, automation speeds up the PO-invoice matching process.
Automation makes the payment process easy by sending automatic notifications to CFOs or controllers. Also, businesses can move away from check payments and towards electronic payments such as ACH transfers and virtual cards. This lowers the risk of fraud.
SutiAP eliminates the tedious tasks in accounts payable process and automates invoice and payment processes. Businesses can save more on processing costs and get cash back from credit card payments.
Additionally, the efficiency and visibility into cash flow reduce the payment risk by enforcing limits and verification processes. With SutiAP, accounts payable will no longer be a daunting task, in fact becomes more productive and effective.