While every organization processes invoices, many still rely on outdated, manual processes that end up costing more money, causing problems with purchase orders, and making employees unhappy.
If you're in charge of handling Accounts Payable (AP) for an organization, you know just how important it is to stay on top of invoices, payments, reporting, and regulation. Luckily, there are tools available that can streamline your AP tasks, reduce invoice processing and storage costs, and take your finance team to a higher level. In this article, we're going to look at the benefits of accounts payable automation, as well as what you should look for in an AP automation solution.
The benefits of accounts payable automation
When it comes to gathering financial data throughout the entire accounts payable process, AP automation software stands out as the go-to solution for the payable departments of any organization.
The reason for this is simple: it provides an end-to-end view of a company's expenditures, invoicing and accounts payable processes, invoice approval processes, supplier and vendor interactions, financial reporting, and much more. This holistic overview facilitates making informed, data-driven decisions at all organizational levels.
Furthermore, top-notch Accounts Payable automation software seamlessly integrates with your existing systems and Enterprise Resource Planning (ERP) software, helping to consolidate processes, functions, and multiple systems without causing disruptions for your team.
1. Increased efficiency and productivity
Enhanced efficiency and productivity are vital for every new organization, with timely and accurate payment of invoices crucial to maintaining a fluid and adaptable cash flow. However, when Accounts Payable (AP) processes rely on manual tasks, it becomes increasingly challenging to meet these demands.
Fortunately, AP automation is designed to improve efficiency, productivity, and accuracy by reducing or completely eliminating human error and using intelligent workflows to speed and process invoices. Teams can implement specific rules to invoice workflows, so the moment an invoice is received in the system, it's promptly routed to the appropriate people for management in the approval process.
But that's not all: most AP automation systems are equipped with built-in dashboards, offering a real-time, high-level view of invoice processing, from the current status to closed and paid invoices. This feature significantly reduces the time spent on chasing invoices, allowing teams to focus more on delivering value.
2. Cost savings and reduced errors
One of the costliest problems associated with manual invoice processing is human error. When accounts payable teams are opening letters, printing emails, and typing invoice information into Excel spreadsheets by hand, errors are pretty much inevitable - especially if their organization processes hundreds or thousands of invoices per month.
All of this can cost an organization time and resources, which reduces efficiency and increases overall operational costs. Going back to rectify duplicate payments, lost invoice data, and delayed reimbursements can also put supplier relationships and team morale at risk, frustrating employees and leaders.
Instead, with accounts payable automation (which typically comes with optical character recognition technology), teams can extract critical data from invoices -- whether they're mailed, faxed, or printed, and automatically transfer the data to their AP systems, eliminating error-prone manual data entry.
Moreover, invoice automation helps streamline approvals thanks to intelligent workflows and invoice matching. Overall, the benefits of AP automation can save teams a significant amount of time and energy, leading to cost savings and the opportunity to add value elsewhere in the process.
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3. Enhanced accuracy and compliance
By employing AP automation solutions, invoices are validated against Enterprise Resource Planning (ERP) systems, making it easy to detect duplicate invoices or payments. There's also no need to input invoice headers or line-item data, as previously mentioned, as all pertinent information is automatically captured.
In addition, automated accounts payable systems offer the advantage of ensuring and enforcing regulatory compliance. These systems come pre-configured with the latest regulatory guidelines and practices, and AP teams have the flexibility to modify processes and auditing procedures to align with specific guidelines such as tax laws, HIPAA, PCI DSS, SOC 1 & 2, KYC, budget policies, invoice approval processes, and vendor/supplier payment terms.
Furthermore, all transactions are tracked and recorded in the database, creating a transparent audit trail. This meticulous recording allows for detailed reporting on financial activities, making it significantly easier for businesses to monitor compliance and promptly identify any issues.
4. Improved vendor and supplier relationships
The arrival of automated systems for invoice processing has proven to be a game-changer for vendors and suppliers, presenting several advantages compared to the traditional manual approach. Chief among these benefits is the ability to ensure timely payments.
Timely payments to vendors and suppliers represents the easiest way to improve supplier relationships. This practice not only improves credibility but also fosters build trust and reliability, ultimately paving the way for perks such as early payment discounts and access to the best product prices from vendors or suppliers.
Beyond ensuring timely payments, Accounts Payable (AP) automation contributes to streamlining the onboarding document management process for both suppliers and vendors. It facilitates seamless integration and provides real-time visibility into transaction statuses through comprehensive reporting. In addition, the system offers a prompt means of communication through portal tickets, further enhancing the overall efficiency of the vendor and supplier relationship.
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5. Real-time visibility and reporting
In addition to streamlining the AP process, the dashboards embedded within AP systems furnish teams a transparent view of the payment cycle. These dashboards not only reveal the current status and responsible parties for pending invoices but also offer analytical insights into the invoice and payment processing performance, tools for predicting expenditures, payment configurations, and an abundance of real-time data.
This functionality ensures that AP teams and the broader business can make strategic, data-driven decisions based on patterns and trends. In essence, it empowers them to fine-tune the invoicing process for maximum efficiency.
Choose Yooz
Many companies, much like yours, are enhancing the efficiency of their Accounts Payable (AP) process by leveraging intelligent end-to-end and real-time AP automation technology across ERP systems, covering the entire invoicing process from Purchasing to Payment (P2P).
The Yooz solution stands out as a frontrunner, employing Artificial Intelligence (AI) and Machine Learning (ML) technologies to help AP teams to channel their creativity and innovation into the realm of invoice automation.
If you're prepared to streamline your AP process and unlock unparalleled efficiencies, let's talk!
