Reasons Why There Is A Need For Automated Accounts Payable

 Automated Accounts Payable Importance

You must have heard about AP automation over the Internet quite a few times now. Automation of the accounts payable process has a favorable impact across the board. 

If you think everyone is bragging about the positives of automating the accounts cycle and it does not add much value to your business. THINK AGAIN! 

In simple words, accounts payable process automation is a method of limiting human intervention. As the name says, accounts payable automation refers to the processes or tools that eliminate human touch in accounts payable processes. 

There is no valid point about why not to automate the accounts payable process. A lot of AP automation software gives detailed knowledge about how to automate accounts payable processes of your company to achieve efficiency and effectiveness.

 Automated AP software provides indefinite benefits to your organization. Automation of the accounts payable process is done by digitally integrating accounts payable software with an online network connecting business partners. Are you still doubtful about automating accounts payable?

An AP workflow involves a series of sequential steps that begins when an invoice is received and end when the payment is made. Accounts payable workflow automation simplifies and streamlines your invoice processing to the extent that you cannot resist it. Automation of the accounts payable process can be a massive asset for your organization. But want to know how? Let us discuss the undeniable reasons why accounts payable automation is necessary that will insist you opt for AP automation software today itself. 

REASONS FOR AUTOMATING ACCOUNTS PAYABLE PROCESS

• EMPLOYEES COMPANION 

With manual processing, employees get stuck in tedious tasks like recording invoice information, detecting errors, and making manual payments. With the AP automation process, your employees can focus on several other crucial aspects of the business. 

• LOWERED COSTS 

Due to accounts payable process automation, several businesses have significantly reduced their costs involved in labor, envelopes, paper checks, stamps, credit card fees, and transaction fees. 

It is a proven fact that AP automation can help you save 50-70% of the cost spent in traditional manual processes. 

Further, it helps in reducing paper waste and saving more money. 

• SIMPLIFIED AND EFFECTIVE FORECASTING 

When you have AP automation installed, you can overview invoices not received and received not invoiced. The software assists you in tracking past invoices along with data to generate more precise forecasting. 

The information provided can be used for making strategic planning and decision making. 

• ECO-FRIENDLY 

The lessor or negligent use of paper in the processing of invoices helps in saving our environment. Paper-based operations require millions of paper invoices yearly, which leads to 

the requirement of billions of pages. 

AP automation not only protects the environment but at the same time reduces unnecessary expenses. Further, it improves efficiency and adds tremendous value to your business. 

• ENHANCED PRODUCTIVITY 

Another compelling advantage of automation is that it can escalate productivity. Accounts payable automation results in reduced employee workloads by storing invoices digitally. 

With automation, more work can be done in lesser duration. Jobs that took hours to get accomplished can now be completed within seconds. Workers and the accounting team involved in the processing of invoices can focus on other significant tasks due to more availability of time. 

This helps in speeding up the productivity and efficiency of the organization. 

• DATA SECURITY 

With manual recording, there is a risk of essential and confidential information getting stolen. An automated software with a computerized system secures crucial data in the cloud, offering a high level of security with the least risk. 

• PREVENT LATE PAYMENTS 

AP software sends necessary reminders related to upcoming due dates for payments that help in avoiding delayed payments. Further, this enables you to make your payments on time. 

• QUICKER CYCLE TIMES 

Steady cycle times can have a considerable effect on businesses. Automated software can largely speed up the process involving invoice cycle times. Automating the mundane manual tasks and digitizing invoices can significantly speed up cycle times. 

Automation of the accounts payable process can save 70-80% of the time for AP staff. 

• NEGLIGIBLE ERRORS 

Automating accounts cycle processing results in lowering errors in payments. It can warn and prohibit duplicate and fraudulent payments. 

Automatic validation of invoice data against ERP data, payments involving errors can be detected before they are made. 

• A CLOUD-BASED SOFTWARE- ACCESS ANYTIME, ANYWHERE 

With AP automation software in place, you can access your entire documents related to the AP process from anywhere around the globe by taking the benefit of role-based approvals. 

With valid passwords and authorizations, you can instantly access it any time of the day. 

• AUDITING AND REPORTING 

Comprehensive AP automated software can assist you with managing documents, which can further boost auditing. 

The system ties all documents and statements involved with every transaction while matching invoices with purchase orders along with receipts. 

• INTEGRATION WITH OLD SYSTEMS 

AP automation software allows you to integrate with your organization’s ERP and financial systems and operations. 

CONCLUSION

In the 21st century era, every business wants to stay ahead. Not adopting advanced technologies, in the long run, can have a severe impact on your business. Streamlining your AP department can have a positive effect on the overall growth of your business. 

Organizations often have to deal with uncountable invoices per month, and keeping track of each one of them can be overwhelming. Manual AP processing can be burdensome to your business, and it can take considerable time and manual efforts that can be saved by automated software. 

Increased return on investment and indefinite financial benefits obtained from AP automation assist you in gaining the upper hand over the competition. With enhanced accuracy, it adds to the competitive advantage.

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