Traditionally, invoices were processed and approved manually. This practice is time-consuming, error-prone and obscure, plus you do not have any visibility of where invoices are in the approval process or what outstanding liabilities are involved. Appropriate automation of your accounts payable workflow will save you time and effort that can be channelled into more critical areas of running your business and is also a much more cost-effective approach.
Here are five reasons you should automate accounts payable:
Improved visibility and control:
Accounts automation means a systematic way of managing and recording all the supplier data, amount to be paid, taxes, line item details, workflow status, audit trail and invoice copies. This systematic approach will result in increased visibility and control over the payables.
Integration with other software solutions:
Accounts payable automation (APA) can be integrated with a company’s enterprise resource planning (ERP) system, seamlessly transferring data between two systems without the need to switch back and forth from one solution to another.
Compliance and Anti-Fraud
AP automation checks all incoming invoice data against your existing records and offers management and AP staff unprecedented visibility and reporting capabilities into the flow of invoices and transactions across the company, thereby reducing the risk of fraudulent activities, overpayments or duplicate payments.
Eliminates manual work
Most automation software solutions come with optical character recognition (OCR) feature, which electronically converts typed or handwritten text into data the computer understands. This eliminates the need for manual keying or any other repetitive task, meaning a more efficient workflow.
There are more than one way accounts payable automation provides cost-saving for companies. It eliminates manual tasks and duplicate or erroneous payments, offers the possibility of early payment discounts, removes the cost associated with paper and other offices supplies like ink, file folders, filing cabinets, staplers, binders, hole-punchers, paper clips, and all the outdated office supplies that paper requires. The automation of the accounts payable process encourages companies to optimize their vendor portfolio.
In this highly competitive world, if you are not adapting to the changing technology chances are you will be left behind as a result of slow turn-around time, erroneous processes, delays and lack of visibility.
The practice of automating your workflow, in any way, always leads to improved workflow and cost saving. It saves time and frees up human brainpower, which means you and your employees are free to do more meaningful, valuable work that carries your venture forward. Additionally, by eliminating or reducing the use of paper you are promoting an environment -friendly culture.
There are too many advantages to ignore, and the choice is quite simple. Take action today!