Accounts payable is the money owed by a company to its suppliers. This can include things like raw materials, office supplies, and utilities. Accounts payable is a short-term debt that must be paid within a certain timeframe. Accounts payable outsourcing services can help to improve efficiency and free up internal resources. This includes tasks like verifying invoices, issuing payments, and maintaining records. These tasks could also be done by accounts payable outsourcing services.
Accounts payable automation software is a great innovation in this rapid digitization era that ensures seamless payment processing and invoicing management. Whether it’s data collection or financial processes, it provides increased control and clearer visibility.
“About 55% of organizations deal with their financial data manually,” says the Payables Insight Report from Pay Stream Advisors. But it was 2020 when more than 40% of SMEs (small and medium-sized businesses) claimed that they would soon leverage the power and benefits of AP automation software.
With such facts and figures in view, it’s a perfect time to discover the advantages that AP automation software brings to you. It’s also an ideal time to evaluate and determine whether adopting automated software would be the right choice for your business or not.
To simplify and ease your research, we present the top ten benefits of adopting an AP automation software for your business. Learn how it not only offers seamless integration and fraud protection but brings more to the table. Keep reading.
The best accounts payable automation software enables your organization to speed up its operation, saving your company valuable time. You can understand what we mean if you have unapproved and pending invoices waiting in your email inboxes or your desk.
The accounts payable automation enables you to streamline the complete process of evaluating, reviewing, and filing invoices to alleviate the need for doing those tasks manually. To ensure that the right individual gets the correct paperwork at the ideal time, you can establish systems and guardrails. Also through accounts payable outsourcing you can get the tasks done.
Plus, you can create reminders to ensure that nothing is left undone. Consequently, you can decrease the time required to process your invoices by 18%. Moreover, your organization will get rid of unwanted boring jobs.
Automation will make all these manual tasks a distant memory, from manual data transfer from one spreadsheet to another and looking for lost documents to manually finding the ideal team member to acknowledge a purchase.
Instead, it will help your enterprise aim for more relevant and significant tasks.
Early-payment discounts from vendors have become a thing now. These vendors or businesses appreciate getting paid earlier as it gives them access to instant cash flow for seamless business operations. However, we should know the best way to organize invoices.
It’s common for people to miss out on their early payment discounts. In fact, many people end up paying late fines for the invoices. This is where AP automation software comes to aid. It efficiently streamlines invoice processing and enables you to earn cash from your vendors in the form of early payment discounts.
AP automation is more meticulous than concrete.
After setting up the automation software, your organization’s data will transmit throughout that system. It means that the possibility of manual error reduces significantly. It’s obvious that there’s an elevated risk whenever there’s a human point of contact.
Consequently, your stress of missed payments, delays, or other issues raised by manual data-entry errors during invoice processing will get eliminated. AP automation also reduces the need for the excess workforce to process more invoicing, thus saving money for the company’s investment planning.
According to reports, invoice costs can be reduced by 50% to 80% due to invoice automation. However, it depends on how efficient and effective your organization’s system is recent.
In many cases, a factor of five is the mark by which automation enables enterprises to decrease the invoicing cost. Also, a range of alerts, including payment reminders, duplicate invoices, and unauthorized disbursing, can help you neglect additional costs.
Moreover, if your company is supporting the green initiative, you can do it while cutting costs by eliminating the need for storage costs for hard copies and printing paper. AP automation enables your business to transform and become completely digital.
Thanks to AP automation, all your data stays secure within the system while enabling you to keep track of the required essentials via dashboards. It means that you can review vendor productivity and employees, ensure that all of them fulfill the contracts or roles, and compare performance over time.
To analyze the overall performance of any employee or the whole team quickly, managers can now leverage the power of AP software. Managers can ensure faster, simpler, and better evaluations with enhanced access to performance data.
Moreover, AP software significantly lowers the risk of fraud. There won’t be any pile of paperwork for invoices to make you feel lost. On the side, there won’t be any unique deal between the vendors and employees. Plus, it’s much more complicated to falsify expenditures.
Manual input of data is one of everyone’s least favorite business operations. Not only is it boring and repetitive, but it’s also time-consuming. Consequently, employees make mistakes, and things happen all the time. Plus, the possibility of errors multiplying with every employee carrying on with this process.
Not having an AP automation software leaves your organization with no precise data. And the absence of detailed data will disable you from gaining meaningful insights. In reality, you’ll make decisions depending on the inaccurate or inefficient data that will affect the business in the long run.
With Accounts payable automation, you can seamlessly shift data from one system to another. It can automatically populate payment details, line-item data, and invoice headers. Plus, it can authenticate your data to ensure precision and accuracy. In the end, you’ll have access to accurate and reliable data.
In the intricate network of AP processes and tools, the best AP automation software enables you to enjoy enhanced reporting and complete insights by connecting numerous data silos with one another.
AP automation eliminates the need to move around extracting reports from all your platforms, spreadsheets, and tools to pick one unlucky employee in the team to ensure data compilation into the report. Instead, you can enjoy real-time insights in an easy and intuitive dashboard with a few clicks.
By acquiring real-time insights, you’ll be able to provide data to the AP team, which they need to make proactive changes and stay agile to get cutting-edge in this competitive business world. Plus, your business will enjoy more precise and correct insights into the budget.
It ensures you don’t spend too much and have a steady cash flow.
You must stay compliant in this business world full of significantly increasing strict standards and regulations. Your vendor, employee, and customer data should remain safe and secure. It becomes easier to protect your sensitive data when using AP automation software.
Plus, no spreadsheet is safe or secure. It’s just a matter of one leaked password, and BOOM, all your sensitive data will come into the hand of an intruder. Ever since the pandemic, cybercrime in-around the world has increased by 60%.
With a single click on a wrong click, your employee can compromise the entire system. With AP automation software, you’ll enjoy data security in an encrypted system while getting to add extra security features for quick access.
For instance, you can incorporate multitudinous approval points and dual-factor authentication for making purchases. Plus, you can incorporate alerts for any suspicious activities.
You’ll have to spend huge money to maintain your stored hard copies of business data and records. It will be boring to sort through file cabinets while looking for documents. However, the IRS suggests you save the physical records for up to seven years.
Here, AP automation software can come to aid as it provides complete digital soft copies of your business records instead of the hard/physical ones. This enables your business to conveniently transfer all the records to an easily explorable cloud storage platform.
Consequently, you’ll enjoy added space in the office without any need for heavy filing cabinets.
If you deploy the latest system into your business, it must integrate into your current system seamlessly. An AP automation software usually integrates conveniently into your financial, ERP, and other business systems. This enables data to transfer seamlessly between the systems without any dependence on the employees.
As mentioned earlier, no employee likes to do monotonous and boring tasks, which drains their spirit. If you ask any member of your business team if they’d instead prefer to be a part of a strategic project that elevates your business growth or shifts data between different spreadsheets, you’ll get your answer.
When individuals repeatedly have to do any job they dislike, they get worn out. So, when you delegate a significantly time-consuming task like manual data entry with their daily operations along with the pressure to meet deadlines, things become more complex and frustrating for them.
AP automation software introduces the latest robotics technology to free up employees and take over their tedious jobs to let them focus on more value-added operations. It will take off the stress from your employees and make them feel more productive and successful.
Before making any buying decision for an AP automation software, it’s crucial to consider the stock of current accounts payable operations. It begins with surveying your core team, knowing their pain points, what issues they encounter during regular AP interactions, what they will require to meet goals for a sustainable future and more.
After gathering valuable insights from the team, evaluate your existing tech landscape. Check whether your IT team has any unique explicit software requirements or not. Also, you may have to consider integrating your budget-planning software or expenditure management system.
Depending on your current number of systems, your best option would be to go with a discrete automation solution. However, if you just want to replace the software or are new to the industry, you can go with an acquisition suite that comes with AP automation. This software takes care of your procurement requirements, including AP management.
One such great software comes from the room of innovations of Invensis as we provide various outsourced finance and accounting services. The Invensis Accounts Payable automation solution is a seamlessly integrated and highly customizable product that makes your business better and bigger every day. This ideal AP automation software solution will support every possible AP or accounts payable circumstance your business may encounter and make things better.
You can use the AP solution to automate accounts payable for
Some challenges and issues that negatively impact the AP processes include:
When outsourcing accounts payable, it’s important to choose a reliable and reputable provider. The provider should have a team of experienced professionals who are familiar with the Accounts Payable process.
The provider should also have a robust automation system in place for processing invoices and issuing payments. This can help to improve efficiency and accuracy.