Automation is the process of leveraging advanced technology and software to perform a slow, manual, and repetitive process which normally are prone to manual errors. Accounting, being one of the most crucial aspects of business can be greatly benefited by automation but complete automation is only possible when each of its major components like Accounts Payable is perfectly automated to the business requirements.
Why Automate Accounts Payable Process?
As one of the most documentation-heavy areas of the accounting process, a traditional Accounts Payable Process depends on manual handoffs between various departments, resources, 3rd party providers, and sometimes and even locations. Larger the manual workflow, slower the entire Accounts Payable Process and is also higher is the possibility of errors, bottlenecks, and even verification.
Longer timelines, increased incidence of manual errors, inability to accurately track while spending heavily for the process can be detrimental for the productivity, efficiency, and business progress. By automating the elements of Accounts Payable Process a business can streamline the entire process, minimizing the manual workflow and the errors associated with it while saving a lot of time, money, and improving the productivity of the entire process.
And over time, automating the Accounts Payable Process paves way for strategic thinking to steer the business in the right direction during this COVID-19 pandemic.
Accounts Payable Automation and Its Benefits:
An automated accounts payable system streamlines the entire Accounts Payable Process by building and automating system for invoice collection, validation and payments by integrating the financial and banking systems producing accurate reports in the process, with minimal manual intervention. With most business adhering to Remote Accounting Services, automated Accounts Payable System has become a norm for its ubiquitous benefits.
If you are a business owner who is looking to automate Accounts Payable Process too, then here are the 5 significant benefits of automated Accounts Payable Process that can further help you make the right decision:
Reduces Manual Errors:
Being a document-heavy process that highly depends on manual data entry, traditional Accounts Payable Process is prone to errors. Since the process involves transferring information from one system to another, large data volume can further increase the risk by a fair margin and simple error of decimal points can result in larger errors and losses.
An automated Accounts Payable Process uses advanced systems that eliminate the manual data entry and its errors by automatically validating invoices while performing 2 and even 3 way matching of invoices and purchase orders. Detecting duplicate invoices are made easier reducing the extra work for the team as all the errors are detected and reported at the early stages of the process.
Reduces Time Spent on AP Process:
Since an Automated Accounts Payable process can capture all the invoice data from a variety of systems (mail, e-mail, post, fax, etc.), the invoice processing times are significantly reduced. By pulling the key information from the invoice management systems the total process can be performed in less time and can be automatically routed to the next process in the line. Thus, automated Accounts Payable process freeing up loads of manual hours spent on invoice processing helping you spend more time on other important tasks.
Streamlines AP Process for Efficiency:
Though all the businesses have AP process in place to makes sure the invoices, approvals, and payments are taken care, the manual AP process heavily depend on department personnel which can be detrimental when there is communication break in the system. This can result in the delay in the process with payments being delayed. An automated AP process sets up automated processes and workflows with visual representation making it easy for everyone in the loop to track the progress and make sure that the workflow is in time.
Improves Customer & Supplier Relationship:
With automation in the Accounts Payable Process, all the invoice process, validation, approval, and payments are done in significantly less time at an improved accuracy. And that means payments are made with minimal effort without delay, improving payment profiles and credit ratings resulting in better supplier relationships in the long term. An automated AP process thus improves your company identity and can help you negotiate better pricing terms with discounts.
Saves Money & Improves Productivity:
While automating manual and repetitive tasks saves employ hours freeing-up a load on the employees. This helps business guide their resources to better and more valuable business functions improving they’re overall productive by a significant measure.
The automated AP process also reduces the number of manual errors that have become a norm in the manual AP process. Fewer errors save money and streamlined AP process helps negotiate better pricing terms, resulting in a lot of savings for a business that employs automated AP process. By automating the AP process, a business stands in a better position to leverage Remote Accounting Services which again helps save money and improve productivity during this COVID-19 pandemic.
In addition to all the above reasons, an automated AP process can be easily integrated into the existing financial systems. Once set-up, it simplifies the entire process without any complex functions and levels-up the Accounts Payable Process saving time, money, improving productivity, and overall efficiency of the business.
As one of the leading Remote Accounting firms in the business, Outsourced Booking has helped many small and medium businesses reap rich benefits form automate AP process, and can you help you too. Want to level-up your Accounts Payable Process with automation? Then you can contact us here: https://outsourcedbookeeping.com/