In the past few years, there has been a great change in the account payable world. With time, things are getting easier for everyone due to technology. In the past, invoices were operated by hand that could take a long time even months too. However, now Account Payable software has provided ease to people by saving their time and energy.
It brings a lot of benefits that are beneficial for everyone including the company. In case, you are not aware of this software, this guide will be helpful for you. I will explain all the benefits that this software provides for your understanding. However, before starting it, let’s talk about What is Accounts Payable Automation.
Accounts Payable Automation
It is a technology or software that manages all the processes and operations of account payable. Before this technology, things were manual but this technology has made things simple and straightforward by saving time and energy. Now you have complete control over various important and fundamental data.
There is no human interaction during invoices and all thanks to Account Payable Automation that has made things uncomplicated for everyone. Want to know more about it? Let’s have a complete discussion below.
How it Works
The work is simple and easy to follow. Now instead of working manually, everything has converted into a Digital process. Let’s talk about this process step by step.
- The invoices that you have in paper or PDF form need to be converted into a digital form so that the process can begin. The conversion can be done in different ways. You can use Data capture or invoice scan for this process. Furthermore, you can transfer the data in digital form.
- The application can refer and code invoices for the approval of the bothered individual. For approval, there should be a proper hierarchy organized by the organization or a company.
- The application can coordinate with the provider-based invoices with the separate buy requests and GDRs. During all this process there is no human interaction and all the process is done digitally.
However, unless and until there is an appropriate solution, this process won’t be successful. Many organizations have adopted this technique for invoices but first, you should come with a proper and detailed solution. Now the question arises, why one should go for Account Payable Automation? Let’s talk about it.
Benefits of Account Payable Automation
This software originated in the market a few years ago not only because of technology, in fact, but it also has the capacity to solve various problems that can’t be done manually. Let’s have a look at those problems.
1- Approvals are Time taking
If you are working in an Account payable department, you will surely agree that how much time it takes to get approvals. Isn’t it? But Account Payable software has given this ease and has overcome this approval issue. According to research, it is said that after this software originated, people have started responding to approval more than 50% times faster than before.
The invoice processing has changed in a good mean and this is what every department and organization wanted. However, if the companies to which you have sent approvals are still working manually, then the problem would be the same. You can’t get rid of it unless they have also set up this software.
The more delay occurs, the more cost you have to pay in the end. Hence, Account payable software can save a lot of costs too. Getting approvals is too much complicated but if you have this software, there would nothing be complicated.
2- It Saves Time and Energy
Do you know that how hard and complicated it is to enter the data manually and later match the items more than 2 times? It doesn’t matter how many hardworking and dedicated employees you have in the company, in the end, they would surely get sick of it. It takes a lot of time and energy to make this work done and if any issue occurs, all your handwork goes in vain.
In manual work, there is a lot of margin of mistakes, and if the work is complicated then the chances multiples. What if that work transforms into digital work? Wouldn’t it be convenient for everyone on so many levels? People have to deal with multiple invoices every month for which there should be software that does all the processing digitally.
You can solve this problem only with Accounts Payable automation that uses artificial intelligence for matching and data extraction. Hence, you can easily get rid of this issue if you have set up this software in your department.
3- Discount Issues and Late Payments
Late payments are a common issue in every other department that can result in the loss of sincere employees. Apart from late payment issues, companies often miss discount payments. Due to the burden of work, they often forget whom to give discounts. It can cause a lot of trouble in the department and among employees.
Cash flow is one of the most challenging tasks for the department but what if they find perfect solutions to overcome this issue? If we talk about the solution, what could be better than account payable automation? It makes things uncomplicated by managing all the discount process and fees-related issues.
The software keeps giving you reminders so that you don’t miss anyone. Furthermore, you can also easily identify the invoices with the help of this software.
Final Thoughts
It is a world of technology where people often avoid doing things manually to avoid mistakes that might take them in trouble in the end. When you have the technology for every work then why take the risk? Hence, if you are working in an account payable department, you know the struggle behind all the work.
However, why worry when you can easily manage Right Accounts Payable Automation? This guide is all about what is this software and what benefits it provides to the organization. I hope you will find this article informative.