The accounts payable process is a critical part of a business. It is the amount owed by an entity to its vendors or suppliers for the goods and services received. An accounts payable department is a busy one. Juggling paperwork, information overload, too much manual data entry, non-user-friendly automation solutions lead to errors, discrepancies, and delays.
Luckily, there is a way to combat this in the new age of tech, providing more accuracy. It’s by using accounts payable automation software. We’re here to explain how it provides such ideal accuracy and the other benefits that can come from it.
An AP or AR (accounts payable and accounts receivable) automation is a technology used to streamline and automate the accounts payable/receivable processes by removing manual tasks and providing more control over important financial data. There is different software available to tailor to your needs, some better than others. However, if you choose the right one, some AR automated systems provide 99% accuracy.
The difference between accounts payable and receivable is that payable represents money that your business owes to supplies. Receivable represents money owed to you by customers. But, how does software have such accuracy? That’s the beauty of technology, of course.
Computing systems are smart. Your typical automation software will capture, code, and send. This allows all documents to be automatically routed based on your rules, no matter the source or format. Next, it will be verified and approved by you, or you can choose it to be verified automatically based on your rules.
There will be a final approval to submit invoices for payment or receive them. Once approved, they will be paid for. Finally, every invoice will be archived for you to look back on whenever. Steps taken like this in software allow for that accuracy to be met.
The Other Benefits
Tons of other benefits come from using automation software for your accounts payable/receivable, which also help increase accuracy. Let’s take a look at them:
- Time Efficiency– the repetitive, slow, and tedious work can become a thing of the past! Entering data and checking forms is now done by your computer, leaving the accounts payable department open for more time on other important work tasks.
- Fewer errors– Computer programs are great for fewer mistakes. They are continuously repeating steps without the brain fog humans tend to get.
- Less paper– no need for storage rooms filled to the brim with paper or files taking up your entire office and/or department area. All the forms and data you will need will be stored on a computer at your convenience. (Plus, it helps keep the earth green)
- Easily Accessible- can be done anywhere and accessed anywhere with an internet connection. If it’s a weekend and no one is in the office, it can be done from home with a breeze.
- Increased Productivity– the department can get more work done now that less focus is on AP/AR, increasing productivity in other important business areas.
- Mitigates fraud– reduces chances for funds to be rerouted or misappropriated. Thanks to cloud security that has been developed, it has allowed security technologies to be adopted in AP automation. (ISO accreditation is important to ensure that.)
- Lowers processing costs– processing invoices can become costly, especially if you are processing hundreds of thousands of them a year. Using an automated system can help reduce the amount you need to spend because more invoices are processed in less time.
Get a look at all the benefits you get with automating account payable processes. Not to mention, all of these benefits can lead to better accuracy altogether as well. There’s no reason not to go the automation route in today’s day and age of technology. It just makes sense!
Switch to Automation
It’s time to make the switch! Start automating your accounts payable/receivable processes, and you’ll soon come to learn how your business will grow in capital, lead to more accurate data, save time, and protect you against fraud.
You may not see the benefits right from the start, but they will become apparent relatively quickly if you stay the course. Automation makes it possible for efficiency across the board in your business. Doesn’t that sound like something you want to bring on?
It’s easy to do, and there are tons of different software to choose from that can meet your department’s exact needs. Say goodbye to inaccuracies with human error, and let the computer software do the job for you!