Key Accounts Payable Automation Myths to Avoid
Did you ever wonder why innovative and forward-thinking companies would not select robust accounts payable solution?
It seems that there are a few serious misapprehensions around the notion of automation. Such inappropriate and unfortunate AP automation myths have a negative impact on the management, and they avoid automation solutions and their immediate advantages.
Here we present some of the greatest AP automation myths and see why organizations still stick to traditional, paper-based, and ineffective methods.
1. Only Large Business Enterprises Need Automation
No organization is too small to save money. Any organization that selects to automate their AP processes will end up saving their accounts departments a lot of time, as well.
Rather than having your teammates to chase down invoice approvals, they can set aside administrative tasks and shift their focus to more strategic and business-building activities.
It does not matter whether you are a startup or a Fortune 500 organization, you are never too big or small to save your money. Deploy strategic methods and create your business for where you want to be and not where you are now.
2. Automation is Time-Consuming and Expensive Process
This is one of the most common AP automation myths that we find floating around. Cloud-based accounts payable solution needs no additional infrastructure, in-house servers, hardware for installation, and no IT department to handle the solution.
System and functionality updates are included as a part of the license fee, and the users can easily access the solution anytime and from anywhere. Organizations that implement cloud-based accounting tools can stand to minimize their IT expenses significantly when compared to an on-premise solution.
3. Lacks Insight over the Accounts Payable Process
If you are wondering that automation can result in a loss of insight and control, it is likely, you are incorrect. When an invoice enters into the solution, you can set the workflow rules as per your team’s requirements, change protocols between the processes instead of stopping the workflow, decide who has the access, and more.
You have complete control over the process and can make any adjustments that you want to make any time. Handling complete visibility is effortless because you can see an invoice’s status at any time easily, track workers progress, along with review and retrieve past documents.
It signifies that invoices will no longer be lost or misplaced under an employee’s desk. The workers can be held accountable for their role in an invoice process, and the management can drive effectiveness easily and examine reports.
4. AP Automation Has Security Risks
Many reports of data loss, illegal hacks, and information leakage have motivated businesses to doubt online data storage, and they choose to store their data locally. While leaders are looking for ways to enhance online data security, a manual invoice processing solution is still more prone to human errors and security risks.
For example, a traditional system is more vulnerable to problems such as wiping out information from the local database by mistake, data theft, loss of paper-based data, and even natural disasters like fire or flood.
With the help of automated accounts payable in place, encryption and password protection protocols offer many layers of security, and you receive full control over who has access to your accounting solution.
Are any of these misconceptions holding your business back from operating efficiently?
AP managers and CFOs can enhance their invoice workflow by implementing accounts payable automation without experiencing any of the concerns. The accounting department succeeds when they are given the appropriate tools for the task, and AP automation is considered as one of the most powerful tools.