Everything Your Business Needs To Understand About Accounts Payable Automation

Is your business looking to overhaul the way it handles its accounts payable operations? If you are still using a high degree of manual data entry and invoice handling then it could be time to consider implementing a digital solution to streamline and improve the entire process.

Accounts payable automation platforms offer the potential to radically transform the way your business handles invoices, cutting out the need for time-intensive manual inputting, automating workflows, and reducing turnaround times.

So, here is everything that your business needs to understand about accounts payable (AP) automation and what it can do to improve your financial management.

What Is Accounts Payable Automation?

The first thing to understand is what accounts payable automation actually is in the first place. These platforms are designed to use technology to streamline the traditionally time-consuming and labor-intensive invoicing process.

It works by replacing manual tasks with automation, from the receipt of invoices through to their payment. This significantly cuts down on the amount of time and effort required to process a single invoice, reducing turnaround times from weeks or days to hours.

There is still human involvement in the process, but it is limited to more of a supervisory role over the automated systems, as well as resolving any discrepancies or issues flagged by the platform. This allows staff to focus on more value-adding tasks that can give them greater job satisfaction, without reducing the business’s capability to handle invoices quickly and accurately.

The Benefits Of Utilizing Accounts Payable Automation

As with many other uses of automation, there are plenty of benefits involved in implementing accounts payable automation into your business.

Here, we will cover just a few of the most important benefits that include:

• Enhanced accuracy

Manual data entry is notoriously prone to the risk of errors, especially when it comes to things like figures and decimal points. But the risk of those errors is instantly reduced when data entry is automated, with the system directly capturing data from invoices and performing real-time checks including three-way matching to ensure its accuracy.

• Improved cash flow management

One of the most important aspects of any successful business is properly managing its cash flow. AP automation improves the management of cash flow by providing real-time visibility into all outstanding invoices and upcoming payments. Knowing exactly what payments are in the pipeline and being able to avoid late payment fees are crucial tools for maintaining healthy liquidity.

• Stronger supplier relationships

Positive business relationships are essential, and accounts payable automation makes it easier to maintain those with a faster turnaround of invoices. Reducing errors also helps to protect supplier relationships, as well as maintaining the integrity of the supply chain. Cultivating a positive relationship with suppliers could also lead to improved terms in the future.

What To Consider When Implementing Ap Automation

While the benefits of AP automation are clear there are still some considerations that businesses need to take before settling on a platform.

Firstly, ensure that the platform will integrate seamlessly with all your existing financial backend such as enterprise resource planning (ERP) and accounting software. This means that data can flow smoothly between systems without the need for any manual data entry, ensuring that key information is not subject to siloing.

Another key factor to consider is the level of training and support available. Successfully implementing an AP automation solution requires team members to get up to speed with the new system quickly. A provider that provides ongoing support is also helpful.

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As the world continues to digitalize, the case for accounts payable automation only looks set to grow, especially as governments around the world increasingly mandate the use of e-invoices. So, do not get left behind the curve and consider how your business could benefit from AP automation today.