Of all the major procedures a company deals on a day-to-day basis, invoice management tops the list. Businesses are still relying on manual processes such as spreadsheets or paper-based processes to manage invoices. The costs and benefits of switching to a cloud-based accounts payable solution are very clear. The following are the five reasons to automate your AP management process:
Cloud-based AP Solutions Redefine How Businesses Engage
An efficient account payable process doesn’t just help in managing invoices, but also changes the entire flow of how a business runs. Apparently, the automated AP software increases the vendor payment time by 51% and late payments decreased by 67%.
Besides improving vendor relationships, cloud-based solutions improve the user experience in invoice submission and approval process. AP solutions give approvers better visibility as they can see what is coming through to get notifications and reminders.
Manual Processing is Slow, Inefficient and Prone to Errors
Eliminating paper will not just reduce waste, but also increase the efficiency and lower costs. Automated AP software can lower the risk of fraud, error and helps get significant time savings for supporting the invoice cycle. Automating AP process will reduce the error rate by 90% as businesses don’t rely on humans.
Invoice Software gives Accurate Picture of Finances
You can’t manage your business finances if you can’t see them. Legacy solutions don’t allow employees to get clear visibility into spending. With cloud-based AP solution, businesses can analyze their monthly spending and enable greater accuracy in accruals.
Automated AP Systems Improve Productivity
Allowing users to submit, review and approve invoices on mobile devices allows employees to increase the productivity. Adding mobility to the process will speed up the process by allowing employees access the data wherever and whenever needed. Mobility can deliver efficiency gains, and offers unprecedented experience to users.
Automated Solutions are Cost Effective
Business costs come in various forms and some of them are hard to identify. Lack of compliance and late payments would cause unnecessary penalties. An automated system would increase efficiency and quicken payment processes, thereby, reducing penalties. Automation reduces the manpower required, as every process can be simplified. However, automatic alerts and notifications policies invoices and other payment processes so no penalties are charged in the long run.
Automating accounts payable processes not only help gain efficiency and productivity, but also gives a detailed view of visibility and increased employee satisfaction for effective operations. Ultimately, this would help benefit business bottom line. And, the most important thing is that connecting expense, travel and invoice data makes it easier to see employee spending, and make smart decisions.