For many years, accounting was cumbersome for businesses, but modern technology and automation have created a better way. Outdated and laborious accounting practices can now be replaced with modern software that can input and process data much faster than traditional methods.
AP (accounts payable) automation software is a tool that provides businesses with the newest technology in accounting and finance.
Here are six benefits of using a reliable AP automation software:
1. Productivity Improvements
Forget time-consuming manual processes. AP automation software enables businesses to process invoices fast without sacrificing accuracy. They can eliminate more than half of the workload associated with typical accounts payable processes. Sophisticated software enabled with OCR (Optical Character Recognition) can even organize and scan entries efficiently, extracting information with ease.
Online encoding makes finding invoices easier, while cloud-based processing ensures an efficient workflow. The touchless nature of AP automation solutions means that invoices can be processed and sorted automatically by advanced machine learning technology, without the need for human intervention.
Precise accuracy in input and output of data encoding helps businesses move towards higher productivity overall. With less manual accounting to manage, employees can complete multiple more tasks each day.
2. Streamlined Processes and Support of Compliance Policies
Many companies and professionals find it hard to record their financial transactions and maintain a reliable accounting system. Losing control of this essential part of any business can cause substantial problems in the long-term, from a failure to follow compliance policies to a lack of traceable audit records.
Accounts payable software tools optimize both time and energy. They foster transparency and streamline traditionally complex accounting process, ensuring that invoices are paid on time and managed in a coherent way. Consequently, they also reduce the risk of human error.
AP automation software also removes compliance risks with sophisticated functions such as audit trails and approval workflows.
3. Boosts Business Growth
Automation provides a consistent and straightforward system that helps reduce unexpected expenses. In utilizing automation software, businesses can complete routine checks and prevent incorrect or false payments. Being precise and concise in accounting can have a substantial impact on a company’s profit. Fewer errors mean fewer costs, and an increase in efficiency of accounts payable processes ultimately stimulates business growth.
4. Promotes Accessibility and Transparency
Comprehensive accounting software and processes provide users with great ways to help manage their finances more effectively. This consequently creates transparency across the business and allows all departments to exchange and access financial data, should they need to.
AP automation tools provide essential data necessary for clarity as well as accessibility. There’s no need for tedious scanning and searching for specific invoices or data—this is the beauty of automation. Additionally, digital records are much easier to store and retrieve than paper files.
Administrators and business owners seeking more transparency in their accounts payable finance department should seriously consider adopting automation software.
5. Ability to Capitalize on Discounts
Many suppliers offer discounts to those who pay their invoices ahead of time, but such offers often lapse due to a company’s lack of clarity in invoicing, or inability to prioritize suppliers that provide such benefits.
Businesses that use AP automation software to expedite accounts payable accelerate their invoicing process and can save significant amounts in discounts. These financial benefits can reach thousands of dollars, depending on the invoice amounts and discounts offered.
6. Increases Security
Processing sizeable online transactions or making large payments is much safer through certified software. Funds can be efficiently transferred online to your creditors or suppliers, thus producing a traceable transaction history that is easier to audit. Most accounting software collate transactions on a convenient dashboard, allowing you to easily track outgoing payments.
This is excellent for the prevention and detection of fraud and highlights any errors that may arise in the accounts payable process. Accounting departments no longer have to struggle with missing, incorrect, or overlooked invoices.
Along with these benefits, AP software ensures any payment disputes that arise can be resolved swiftly. If a supplier claims that an invoice hasn’t been paid, it can be cross-checked using the software in a matter of minutes.
Benefits of Using AP Automation Software: The Bottomline
Adopting a sophisticated and accurate accounts payable automation solution enables businesses to take control of their accounting departments and speed up traditionally time-consuming processes. As a result, they’re able to reduce costs, minimize errors, boost productivity and ultimately, increase growth. The extensive data extraction tools and real-time data succession planning capabilities integrated into AP automation software are added benefits.