Changes can be scary, but it is unavoidable, in fact, there’s a famous saying that goes “Change is the only constant”. This is so true when it comes to switching the process within a well-established organization, that has been doing the same thing for years, particularly accounts payable.
Being a business owner and not hopping on the AI train is simply crazy. You’d be missing out on lower processing time, reduced costs, and better accuracy by just automating your Accounts payable process, as well as managed accounts receivable. But that’s just like the tip of the iceberg.
So, in this read, we will dive deeper into how AP Automation will benefit companies and businesses that are willing to compete.
It is Very Efficient and Saves Time
Writing invoice data manually now looks tedious because of AP Automation. By digitizing and automating these processes, businesses are seeing invoice processing go from a week’s work to barely hours.
And it’s not just about speed. There’ll be more free time for your finance team to focus on other things that really matter. Instead of doing so much paperwork, they can now focus on other ways to be helpful to the company like strategic financial planning, building vendor relationships, and identifying cost saving opportunities.
It Helps Reduce Costs
AP Automation reduces costs significantly. And, no, I’m not talking about job positions.
Manually filling out accounts payable requires expenses on paper-based systems, which means automating the process cuts out paper costs, printing fees, and even posting fees.
Automating also brings shorter processing time, which means businesses or companies can take advantage of early payment discounts that suppliers offer.
It is Accurate
There is an old saying “to err is human” and this couldn’t be more true at work. In a business facility, even a small mistake can have major kickbacks.
AP automation acts like a vigilante accountant by greatly reducing the risk of errors in data entry and invoice processing. So it’s much cleaner than the job a person would do.
This improvement travels through the entire financial ecosystem of a company. It means more reliable financial reporting, easier audits, and better decision-making based on rock-solid data.
Financial Control and Visibility
Imagine watching your company’s financial control and cash flow all at the same time. This is one of the benefits of what AP automation helps to achieve.
When you implement automation, financial leaders can access even tiny details of pending payments, cash flow projections, and spending patterns.
This level of insight is a game changer for the financial planning and control unit. You’ll be able to perform more strategic cash management, better budgeting, and the ability to see changes or issues before they escalate.
Plus, when it comes to compliance and audits, having a clear trail of all transactions is valuable in the case of fraud or incompetence.
It Helps in Fortifying Against Fraud
We live in an era where financial fraud is increasing day by day and getting more complicated. AP automation serves as a strong line of defence in the financial department.
Automated systems come with in-built controls and audit trails that make it difficult for fraudulent activities to proliferate. They add extra coats of security that manual processes are incapable of achieving.
It Develops Supplier Relationships
AP Automation being able to develop supplier relationships isn’t talked about enough. How exactly? It ensures timely and accurate payments. That means the days of vendors chasing down late payments or sorting out variation are over.
There are also supplier openings where vendors can check the status of their invoices and payments in real-time. And that translates to better relationships, much more reliable supply chains, and even better treatment from main suppliers.
It Aids Scaling for Growth
After automating your accounts payable, you get some flexibility to move your business forward. It doesn’t matter if your invoice volume doubles or triples, the automated system can handle the work without the need for more staff members. This is what is meant by the flexibility of the AP automation.
And this doesn’t just apply to the volume. Modern AP Automation systems can adapt to accommodate new changes, different currencies, and even changing the requirements for compliance with ease.
It Accommodates Human Touch in A Digital World
We’ve talked too much about automation and what it can do. It’s important to note that AP automation doesn’t mean laying off the manual staff.
Instead, it elevates the role of AP staff by making them focus on other ways to bring the company success. Rather than being delayed in data entry and paper pushing, AP staff can focus on exception handling, vendor relationship management, and financial insight. These tasks truly add to the company’s success, with human insight and relationship skills being its chief makers of it.
Basically, AP automation also allows your team to be more human by handling the digital tasks digitally, freeing up people to do what they do best such as think critically, solve problems, and try to move your business forward.
Conclusion
As we move through 2024, it should be clear that AP automation is not a luxury or a way to lay staff off, but a helping hand. It is a big necessity for businesses and companies that want to stay at the top and look efficient and financially sound while doing so. From boosting efficiency and reducing costs to enhancing security flexibility, the benefits of AP automation grace every aspect of a company’s financial operations.
