The accounts payable process is crucial in any business, yet it can be very inefficient and sometimes inaccurate. Many businesses still rely on the traditional method of manual data entry and paper format. Others have eliminated the use of paper, saving time and energy and delivering fiscally better results. Still others are finding even more savings through fully automated A/P functions. Automating Account Payable Process will help generate the following benefits:
- Eliminates Paper
Paper can be digitized. With automated AP, you can now start managing electronic documents as opposed to paper. If you receive invoices in paper format, you can now scan and capture all received items in the account payable process immediately. Better still, ask your suppliers and vendors to directly send you invoices in electronic format. It will be beneficial for them as well.
- Eliminates the risk of Duplicate invoices/payments
Vendors might send the same invoice twice via different channels. Detecting a duplicate invoice and discarding the same, is a slow process, especially without automation software. It causes unnecessary re-work on the part of your AP team. Automation can spot duplication at an early stage and prevent losses and confusion.
- More details within your Accounting System
Your back-end accounting system is a helpful source of information. However, due to manual data entry limits, one does not always get all the information captured with in the accounting system, especially when trying to pay invoices. Through automation, you can get more details about the invoice, including the ability to reconcile details to outstanding purchase order numbers. Invoice amounts from a supplier can now be verified for reliability and accuracy, reducing the risk of fraud or double payments.
- Reduces Staff workloads
Using automation software that does the data entry and processing automatically will help free up time for your staff with time to do quality checking and to ensure proper approvals are obtained. They can also begin to enforce compliance to spending limits and warn you of any potential issues with suppliers.
- Improves Employees Skills
When you adopt full automation in A/P, you can now train staff on the new processes that will help improving their abilities to do other work and improving overall productivity. Staff will gain confidence and new passion for work, knowing they are being invested in to do new things as opposed to mundane tasks.
When a vital department of a business faces errors and inefficiency due to manual data entry and paper-format, a full automation of accounts payable can deliver many benefits. By using today’s AP technology, you can improved efficiency in your organization, making you more profitable and more competitive.