Whether you want to increase the efficiency of your accounts payable (AP) department or want to streamline your AP process, the benefits of AP automation outweigh the associated costs.
In this era of digital transformation, adapting to technology can be difficult for everyone, yet taking advantage of such transformation is critically important. Despite working with software tools and technology, most accounts payable departments continue to process invoices through old-fashioned, outdated methods.
The following are some reasons why you to have to leverage technology to streamline AP processes and start going digital.
Anytime you enter the details, there is a possibility you entered the wrong data. One key responsibility of the accountant is to double-check the simple data entry errors. Mistakes can happen if there are hundreds of invoices to be entered into the system. Even a simple error can cost you more and the entire process becomes messed-up. Automating the accounts payable process avoids data entry errors, and you can easily spot any errors or inconsistencies that occur in the data.
Automating the accounts payable process eliminates the time spent on these tasks and allows your AP team to focus on more productive work. Invoice processing is the likely area where errors can happen due to manually entering the information. With automation, the accounts payable department can shift their focus to improving cashflow and get discounts from vendors.
Pulling all the relevant information and presenting it whenever required gives AP department more insight into what is happening. Assuring transparency allows you to drill down into specific areas where you might think that a process improvement is required.
Speeding Up the Processes
Although you keep a record of everything, sometimes processes fall through the cracks when invoices and supplier payments are not managed properly. Accounts Payable software allows you to automate the approval workflow process, which includes checking the billed amount and approving the expenses appropriately. By automating the processes, you don’t need to chase employees for the missing information. If something goes wrong in the approval workflow, you will know exactly where the process went awry and how to fix it. In addition, you can check the status of invoice payments within just a few clicks.
Automating the accounts payable processes and ensuring transparency is critical for businesses to function properly. Sometimes, paper gets lost if you have stacks of paper in a file cabinet. Automating your accounts payable processes gives you the ability to track every step of your operations and complies all of the important records. Automation makes your job simpler by allowing you to access all the transaction data within a few clicks. Also, the information can be shared easily without much effort, as the software allows you to export or import the data automatically, which eases the process of doing business.