Accounts payable (AP) automation makes financing convenient for businesses. They can perform their otherwise tedious tasks with ease. These include but are not limited to invoicing, payment processing, and inventory stocking.
Some businesses still choose to handle these tasks manually. However, accounts payable automation tools can change the way in which the business functions and improve overall workflow with simple integration. Here are 5 reasons why you need to consider accounts payable automation software for your business today.
The most obvious reason for a business to use accounts payable automation systems is that it saves time. Businesses have to go through a ton of invoicing and payment processing each month and doing that manually is a time-consuming task. With accounts payable automation software in place, all of this can be done in a streamlined manner with no errors and quickly.
What this essentially means is that your payments and bills go out quicker and you’ll have a better understanding of your funds. When the money comes in and goes out at the right time, it opens up the scope for businesses to explore expansion and trail new waters.
AP automation also helps businesses have a clear idea of where they stand and whether or not they need to re-strategize their business plan. It also helps understand losses and how to minimize them.
Reduces invoicing costs
Traditional invoicing requires a lot of investment, not only in terms of time but also money. Printing out all those invoices, bills, and receipts costs money for the inventory needed. You also have to invest a lot of money on stamps, postage charges, and couriers when required.
All of these costs are eliminated when you switch to an AP automation system, making it worth the investment. With AP automation solutions in place, all you need to do is send out an e-copy of the invoice. This can be done automatically, and you can keep track of when the payments are made or when they go out.
Has better accuracy
No matter how efficient a finance team you hire, they’re bound to make a few mistakes. It’s human to make mistakes after all and that’s not something you can control. But with accounts payable automation software, you eliminate the risk of mistakes since the entire system is automated.
Not only are AP automation solutions quicker, but it’s far more accurate and there aren’t any errors you’ll need to go back and fix once all the bills are out. The smallest of errors can cost businesses a lot of money which isn’t productive and can set a business back.
While this might seem unlikely, you’ll be surprised to know that many businesses are targets of fraud. This makes fraud prevention an imperative. When you implement accounts payable automation systems, you automatically protect your business from fraud since the information shared on these systems can be controlled to a great extent.
With AP automation solutions, you can provide different ranges of information and access to employees. This means you can provide a handful of trustworthy employees with access to the complete information pool as opposed to traditional financial records which were accessible to almost every individual on your finance team. The less information is shared, the less likely any information will be leaked.
Is effective in auditing
One of the most effective uses of an AP automation system is that it helps with auditing. When you have all your documents in place and none of your bills have errors, auditing becomes a breeze. Whether you’re a small firm or a large multinational organization, you’ll need to get audited. When you do, it’s necessary to be forthcoming with all financial information. When you have it all in one place it’s something you’ll look forward to as opposed to dreading.
Businesses today need to focus on digitalization and automation and one of the key areas to get this started is in the accounts department. Once this is in place, everything else will follow. In no time your business will function in an auto-pilot mode thereby giving you more time to focus on growth and expansion.
Businesses are now looking for ways to make their processes streamlined and the right automation tool can help them do just that. Whether you’re looking for a limited solution for a handful of employees or want to implement processes across the organization, these automation tools are just right for you.