Like other business practices, accounts payable were traditionally handled using paper, pen, and manual workflow. Fortunately, computers came to aid the business industry. With advanced technology and the importance of Big Data in business processes, accounts payable can improve through automation. Accounts payable automation or AP Automation is a technology that utilizes the digital system to reduce manual and repetitive tasks like data entry and writing checks. AP automation allows you to submit invoices, manage approvals, and process payments electronically through a single platform. As such, AP Automation is beneficial for any company. Here are some of the benefits of AP workflow Automation.
- Time Saving. Using automation to manage accounts payable reduces the time needed to process invoices. Payables are routed according to the business processes you determine. Using AP automation means that you will not spend time looking for an invoice or searching where it is in the approval process. You will eliminate the chances of having a misplaced invoice.
- Cost saving. Traditional accounts payable include several hidden costs. Processing an invoice can cost you up to $15, which is about $10 more when using automation. Automation will help you save on labor costs by almost 83% since it reduces data entry and speeds up other processes like invoice matching and payments. The system also reduces the cost of document storage and postage. With AP automation, you will also reduce the risk of making duplicate or late payments or inadvertently overpaying an invoice.
- Collaboration. Invoice systems demand the cooperation of many people on any particular payable in real-time. No matter the location, everyone with a stake in an invoice can simultaneously access it to confirm any changes or seek clarification with only a click of a button.
- Reduce Risks. Automation gives you visibility into your invoice approvals and payments workflow. As such, you can easily track false billing, duplicates, and fraudulent transactions. The AP Automation software flags all duplicates, extra charges, and suspicious activities. This means that you will have all the audit controls you need, guarding you against any accounting risks.
- Cloud Based Accounts payable. Cloud gives you access to the AP system at any time and anywhere. Cloud centralizes all information on a single platform for all legal entities. Visibility also allows leaders to get insight into how the stakeholders run the process. Remote tools give stakeholders access to manage reports from anywhere and increase collaboration and productivity.
- Security. Account payable automation can connect with other accounting software to seamless integration. This connection makes it easier to track, share information, collaborate, and develop new protocols across the enterprise. The software system also creates a clear audit trail for both internal and external reviews. Vendors can also use suppliers’ portals to interface with your system for reviewing and invoicing without risking the exposure of sharing sensitive information.
AP automation provides a sense of control that is second to none. The system allows you to track your invoices and know everything about what you paid.