In the ever-evolving landscape of modern business, the importance of automating various business processes is becoming increasingly apparent. Among these, one stands out: The automation of the accounts payable process.
Traditional, manual methods of handling accounts payable are time-consuming, prone to errors, and do not lend themselves to effective auditing. The solution to this is automation, which has numerous advantages that can greatly boost business productivity.
The Pitfalls of Manual Processes
Manual handling of accounts payable involves a large number of tasks that are both painstaking and time-consuming. These include handling invoices, verifying transactions, and executing payments.
Inefficiency and Errors
Manual processes are inherently prone to inefficiency and errors. A single misplaced invoice can lead to payment delays, duplicate payments, or late payment penalties. The time spent on tracking, verifying, and correcting these errors all diminishes overall productivity.
Difficulties in Auditing
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Manual accounts payable processes also make auditing difficult. The lack of a cohesive system makes it hard to track the flow of information, which makes auditing a time-consuming exercise.
Automating Accounts Payable ─ The Benefits
Automation addresses the drawbacks of manual processes, streamlining operations, reducing errors, and making the auditing process easier.
Is your accounting team empowered to do their best work from wherever, whenever? As remote finance teams are increasingly asked to achieve with less, your answer must be a resounding “yes”. But in fact, only 10% of businesses currently have a fully automated AP solution — which means they’re missing a key ingredient in their accounting team’s success.
AP automation is a digital solution designed to reduce repetitive manual tasks, such as data entry and writing checks. With automation, companies can submit invoices electronically, manage approvals, and process payments via a single, unified cloud-based platform. AP automation is often used to achieve the following goals:
- Eliminate data entry
- Enable online approvals
- Generate digital audit trails
- Automatically match invoices to POs and payments
- Enable secure end-to-end payments
- Reduce errors such as duplicate payments and incorrect invoice keying
Not only will AP automation free teams from repetitive, tedious, manual tasks, it will also reduce an organization’s risk of fraud, thanks to additional insights and oversights at every step of the AP workflow.
Furthermore, they can also easily integrate your existing systems such as Sage, Quickbooks, Netsuite, or other AP software with their existing accounting systems and sync vendors, GL, tax payments, etc.
Digital invoicing shines when it’s time for an audit. Electronic audit trails make invoice tracking a breeze, from receipt to payment. You can search for invoices by vendor, GL code, amount, legal entity, or any other information on the invoice, and track its progress through your workflows at a glance.
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Increased Efficiency
Automated accounts payable services significantly increase efficiency. They streamline tasks, eliminate unnecessary steps, and make processing payments quicker. This frees up time for employees to focus on more strategic tasks, catalyzing overall productivity.
Reduction in Errors
Automation reduces human error. With automated systems in place, invoices are not misplaced, payments are not delayed or duplicated, and data is not lost. This not only reduces unnecessary work but also boosts the reputation of the business with improved payment performance.
Easier Auditing
Automated systems simplify the auditing process by maintaining complete, accurate records of transactions. The data is easy to access, making auditing a smooth, efficient task rather than a dreaded burden.
Broadening the Scope ─ Pairing Accounts Payable Automation with Outsourced Accounts Receivable
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While the benefits of automating accounts payable have been well-articulated, it’s crucial to remember that business functions cannot operate in silos. To truly tap into the power of automation, it must be deployed across interlinked processes. This brings us to the consideration of another pivotal, yet often overlooked area: accounts receivable.
Picture this – your business is efficiently equipped with an automated accounts payable system, yet on the other hand, handling accounts receivable is hindered by slow, manual processes susceptible to errors. This stark contrast in approach prevents the full utilization of automation benefits.
To dodge such pitfalls and ensure your business enjoys the complete advantages of automation, consider a strategic integration of accounts payable automation with the external use of experienced professionals for handling accounts receivable.
Outsourcing accounts receivable brings to the table a synergy of efficient processes, expertise, and technology, making it an ideal complement to an automated accounts payable system. This symbiotic relationship can yield aggregated productivity gains, by facilitating seamless, error-free financial transactions.
As businesses strive to enhance efficiency, curtail costs, and unify underlying processes, integrating automated accounts payable systems with accounts receivable outsourcing can turn into a strategic imperative. This dual strategy doesn’t just expedite the entire financial operation but also minimizes risks associated with manual tasks and human errors.
The takeaway here is clear – a myopic focus on automating only one aspect isn’t sufficient. For those looking to achieve an optimal financial operation – one that’s fast, efficient, cost-effective, and risk-averse – adopting a dual approach merging automated accounts payable with outsourced accounts receivable is the way forward.
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Conclusion
In conclusion, achieving heightened productivity can be greatly realized through the power of automating accounts payable processes. The tangible returns, in terms of efficiency and effectiveness, attained through automation surpass the initial investment required to implement these systems.
Moreover, aligning automated accounts payable with expert external management of accounts receivable can deliver a comprehensive solution to businesses. This strategic approach can notably elevate their overall operations and positively impact the bottom line. Generally, this type of investment often results in substantial returns in the long run.
