By: Editorial Staff, Date: July 21st, 2022
Automation has become the norm in almost all areas of businesses today, particularly in accounts payable (AP) processing. With the constant technological advances, the need to adopt automation technologies is critical for companies to thrive and maintain competitive advantage. However, any operational changes always pose a challenge for everyone.
Invoice payment matching and manual data entry are among the top challenges in AP. And this could be more difficult to manage with a large volume of invoices and financial transactions. To expedite manual tasks and reduce human error, most organizations lean towards AP automation software.
What is AP Automation?
Working through a pile of paper invoices is not just time-consuming but also significantly adds to the heavy workload for finance teams, particularly in making audits and mailing checks. Accounts payable automation helps improve these manual processes by minimizing human intervention and reducing error-prone tasks. It’s easier to track spending with digital business network-integrated AP software that connects with all suppliers as it saves more time and resources besides cutting costs and risks, thus adding more value to the company.
7 Key Benefits of AP Automation
- Streamlined AP Processes
Budgeting, auditing, and reporting are more efficient and accurate using AP automation software compared to manual processes from virtually checking duplicated payments, and flagging exceptions for approver’s review to almost completely getting rid of human errors.
- Early Payment Discounts
Completing invoice approval on time remains a major problem for AP teams with only 45% responsible for early payment discounts. Using AP software shortens the invoice lifecycle, which significantly adds to savings.
- Tailor-Made Solution
Custom accounts payable software can be used with various types of adjustments to address specific needs. Invoices take routes with proper authorization and setting up alerts or approval timers is also possible.
- Saves More Time
Accounts payable automation expedites invoice processing, approval, and other predetermined AP processes, thus reducing the time needed for manual tasks.
- Better Controllability
Easy access and real-time monitoring are critical for managing payment cycles. Data sharing throughout all levels of your organization is easy with AP automation from importing to exporting pertinent information that encourages real-time collaboration, reporting, and analysis.
- Improved Insight and Transparency
Accounts payable automation helps finance executives see the big picture at a glance, thus letting them focus on specific problem areas and opportunities for improvement, such as performance monitoring and employee productivity development.
- Healthy Business Relationships
Through AP automation software, it’s easy to serve suppliers and maintain meaningful, long-term relations by making timely approval or payments and being updated with time-sensitive circumstances like impending contract renewals.
Once you start the digital shift in your business, you’ll immediately experience its benefits and advantages and eventually minimize the operational risks you are currently facing.
DataServ can help by automating your digital workflows in just days with solutions that are tailored to suit your organization’s needs!
