For most companies, the process of accounts payable is easy, yet tedious. Keeping up with outstanding invoices to suppliers, customers and other parties in which you do business can be extremely laborious as well. This is especially true for companies that handle large amounts of invoices on a recurring basis. One of the greatest challenges is that accounts payable is a paper-dependent process. This means that there is a higher likelihood of bottlenecks, errors, omissions, duplicates and invoices that are lost in transit, or rather missing entirely from the receiver’s desk. These issues lead to an overall higher cost per invoice.
Accounts payable automation is a way to shorten invoice processing time and streamline the daily duties of the AP department. Automated solutions reduce the risk of error, and essentially lower the cost involved in producing and processing each invoice. It is designed to lessen the amount of manual work and administrative tasks required to create and handle invoices. Automation allows the ever-so critical AP department to focus on more significant strategic tasks like budgeting, planning and forecasting.
Here are some of additional benefits of automating accounts payable:
- Greater visibility into status, due date and payment liabilities
- Better customer/vendor service levels
- Strengthen internal network and system controls
- Improve data validation
- Enhance processing capacity
- Receive payment faster
- Strengthen data security
- Remove manual data extraction and re-entry
- Less dependence on filing cabinets and in-house servers
- Facilitates collaborative opportunities between suppliers and vendors
A great majority of these benefits are seen rather quickly in the grand scheme of the accounts payable process. Before jumping on board, it’s important to learn about automation tools and features not only to determine how to gain the greatest benefit for your company, but to find out what is most compatible with your existing workflow and automated solutions. E-invoicing, scanning, online tracking, advanced reporting, electronic invoice interface, and various payment services are some of the most utilized tools when it comes to AP automation. To learn more, contact us today.