The best accounts payable (AP) software plays a pivotal role in smoothly managing the company’s cash flow. However, it can be utterly frustrating; some might even call it an exasperating process if done manually. The manual process happens to be expensive, slow, and highly challenging. A mere human error in calculations can be detrimental to the business.
Nevertheless, thanks to the advancement in accounts payable software technology, all the problems with manual AP processes can be dealt with by investing in just one or a set of good enough funds payable automation software.
What is AP Automation Software?
Simply put, accounts payable automation software comprises all the tools an AP department would need for their AP processes. The accounts payable automation software is carefully designed and ensures that all the needs and demands of the department are being met. From sending or receiving invoices in self employed accounting software to earning early payable discounts from vendors in an enterprise, all can be made possible with the help of the proper Accounts Payable automation software.
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What is Accounts Payable (AP) Automation?
The automation of the processes that the AP department once used to do manually to eliminate human intervention in those processes and make it more efficient and effective by leveraging the advantages of cloud accounting software is what AP automation is.
With all the methods being handled digitally, using accounts payable automation software to send or receive invoices, managing approvals, and processing payments have become incredibly simple. Furthermore, it cuts down the expenses which manual processes usually require along with the frustration of employees working in that department and improves their overall morale.
How Do You Automate AP Payments?
The following methods can be applied for the automation of the AP payment processes.
Using accounts payable automation software, we can work with our clients, suppliers, or vendors to handle all the invoice processes electronically and account for inventory in accounting. Accounts payable automation software also helps cut down the expenses required for generating physical invoices. The costs of paper, pens, printer toners, etc., may not seem much for a firm, but these direct expenses, along with the indirect expenses and some hidden costs, often end up being a considerable amount to pay.
Approval Process Automation
Making approvals is one of the AP processes where the possibility of human errors is relatively high, considering the number of hands the invoices pass through before getting the final approval. Manual approval processes can be time-consuming and increase the risks of human errors or even loss of documents. Accounts payable automation software provides us with an automated AP workflow that efficiently routes each invoice to the appropriate parties before the final approval. Accounts payable automation software also reduces the unnecessary steps and touches the invoices that tend to go through.
Data Entry Automation
Many AP departments that follow the conventional AP processes use excel spreadsheets to track and record invoices and other payment information. We are prone to making mistakes in manual data entry tasks, and the entire process becomes very time-consuming. Cloud computing accounting software has the solution to this problem as well. With an OCR invoice system, we can capture and load the invoice data onto the system. Doing so will help unify all our AP data under one roof and eliminate possible data entry errors.
If AP departments are not using accounts payable automation software for their efficient data entry and handling of invoices, they are probably performing the verification for these payments manually. When AP departments shift to Accounts payable automation software, they can minimize the expenses required by manual labor and physical verification. By automating the verification process through suitable accounts, and payable automation software, tracking logs are made simple without worrying about duplication errors.
Benefits of Accounts Payable Automation Software
There are numerous benefits of investing in good accounts payable automation software. The whole point of replacing the conventional manual AP processes with accounts payable software is to eliminate any human error or inefficiency that can have long-lasting effects on the company. Three key benefits of owning accounts payable automation software are enumerated below.
Save Time and Eliminate Errors
One of the best benefits of replacing manual processes with accounts payable automation software is that the invoices do not have to go through several pairs of hands before the final approval, which means the chances of any errors dropping to zero. Additionally, sending or receiving invoices, the entire approval process before the payment processes, the generation of physical invoices, and the data entry work to track and keep a record of those invoices along with some other payment information is very time-consuming. Accounts payable automation software can help one save all the time invested and make the processes run more swiftly, smoothly, and efficiently. Companies with complex operations and finances often choose ERP accounting software to further simplify and centralize important business processes tied to expenses and revenue.
Small investments such as buying paper, printer toners, pens, and other items that manual AP processes require may not seem a lot, but these expenses, along with some additional indirect costs, keep adding up. The company pays a large sum that could have easily been avoided with the help of accounts payable automation software. With lesser consumption of such resources, the company can also contribute to the improvement of the overall environment of the planet.
Improve Data Security
Threats to computer security, risk of data leaks, and fraud come with performing all data-related actions manually. Important information, such as invoices or user verification, can be misplaced. But when using well-developed accounts payable automation software, you avail yourself of the chance of fraud protection and achieve data security. Through good Accounts payable automation software, the admin can assign individual access to different employees according to the requirements. The opportunity to double-check the data is also availed through well-managed Accounts payable automation software.
How to Compare AP Automation Software
You will find many good AP automation software, but choosing the best one that works for your business requirements is significant. Once you have determined what kind of Accounts Payable automation software you need according to your organization’s requirements, there are a few things you can look into when comparing suitable accounts payable automation software.
Six key components to look for when comparing the best Accounts Payable automation software include the experience it offers, the accuracy for the invoices capturing, convenient approvals for the invoices, tracking for AP invoices, secure integration of the Accounts Payable automation software with the rest of the system, and automation of electronic payments with ease.