Imagine the amount of time and effort it would save, if you didn’t have to process those bundles of paper and payment inquiries manually. Read through the article to find out the solution to this and much more about how integrating your automation payable processes with an account payable software can reduce the risk of human errors and increase compliance and control.
Accounts Payable Automation also known as AP Automation refers to the technology that minimizes human intervention and automates and streamlines the accounts payable process or trade payable process. Basically, AP Automation helps companies in building a digital workflow so that the work which was previously done by an AP staff, can now be done seamlessly without the risk of potential errors and delays.
The entire process of account payable automation starts with scanning invoice data in digital form, mainly through optical character recognition (OCR), a method of scanning and capturing data.
AP Automation software then goes on to manage the route of invoice data through the digital workflow. This function is done on the basis of specific logic configured in a particular manner in the organization’s accounts payable automation software.
After the completion of this process, managing the route of data and coding, AP Automation is now integrated with company’s enterprise resource planning (ERP) system to perform exchange of data between the two systems without burdening the ERP environment or business IT resources.
By performing these tasks efficiently, Account Payable Automation ensures to significantly reduce the risk of errors and frauds that may occur by giving the management control and unprecedented visibility into the flow of invoice data and transactions of the company. Other than these, AP Automation also provides a number of cost saving opportunities to the company by reducing the manual tasks. Additionally , AP automation also enables companies to avoid duplicate and erroneous payments, optimize vendor portfolio and other discounts.
1How To Get Account Payable Automation?
Companies who wish to automate accounts payable usually go for an AP Automation solution that is integrated with ERP system or other business applications. At present, the market is full of options, one of which is cloud-based AP software that perfectly supports companies of all sizes and nature.
Automation of account payable is subjective to the type and nature of the industry and works differently according to the type of invoice. For direct spend where there’s a purchase order involved, AP Automation system automatically matches the invoice data to the order and after checking whether everything matches or not, it directly sends it for payment without any human intervention. For indirect spend or expense, invoice, the AP Automation system will automatically support data capture, distribution and coding of the invoice to the appropriate person within the company. This is what we call touch less invoice processing solution.
2What Are The Benefits Of Accounts Payable Automation?
Account Payable Automation enables touch less management of invoicing and maintains the digital workflow within an organization. It provides organization the much needed control and unprecedented visibility into the functioning of the organization with increased efficiency on data collection and other financial processes.
In recent years, more than 40% of companies of all sizes have claimed to have adopted AP Automation software. With companies shifting towards AP Automation and reports around increasing use of AP Automation system in upcoming years, there’s no better time to explore the benefits of AP Automation and discuss whether shifting towards it will be beneficial for your business or not.
Somewhere the most beneficial part of getting an AP Automation system installed is that it saves your time. You no longer have to manually go through the invoices kept on your desk or email waiting for your approval. With AP Automation Software, these tasks can be efficiently performed by streamlining the entire process, as a result eliminating such delays and saving your precious time. You also get access to intuitive dashboards which then assigns the appropriate person, timely invoices.
Cost efficient data preservation
Storing business records of particular financial year of nearly 6 to 7 previous years plays an important role in knowing the financial position of the company. But storing these paperwork can soon add up to cost you a staggering USD 2000 every year. However, after getting AP automation software that comes with cloud storage will typically cost you less than USD 10 per month.
Enhanced dashboard are a great addition to your organization. For instance, if you’re someone looking for in-depth analysis over different aspects of business than you can look into these dashboards.
Helpful In Auditing
Along with providing you invoice processing solutions, AP Automation can also assist you in document management by linking all the documents involving transactions and matching it to invoices with purchase orders. This ultimately reduces the risk of losing paperwork and makes it easier to file annual and quarterly reports.
In a report by AFP Payment Fraud and Control Survey, it was reported that around 80% of companies fall in payment fraud. AP automation software protects your organization against such frauds by ensuring that the access to invoice approval is limited to specify employees and the auditing is checked thoroughly.