This article was contributed by Mikayla St. Claire, Public Relations Specialist for OnPay Solutions.
Organizational growth demands proper financial management. With the rapid advancements in technology, many organizations are now transforming from manual operations to account payable (AP) automation software. AP automation software enhances effectiveness in the accounting sector by automating every process, thus, reducing errors. On top of this, it also saves on costs and relieves the accounting team from a lot of mundane work. Although some companies effectively use manual processes and paper invoices for accounting procedures, there are many benefits of AP automation software.
Here are some of the reasons why you should invest in AP automation software.
1. Enhances Accuracy and Minimizes Errors
When using manual calculations, you collect data from different departments. While compiling the data, making mistakes is high because it entails a lot of details and estimates. Making an error in accounting might just cost the organization a lot of money, whilst going back to see where the mistake arose from take a lot of time. Using AP automation software will save you from costly errors and enhance accuracy. AP automation will keep all the data accurately, present it for approval, process payments, and automatically process the accounting report.
2. Saves on Time
It might take you days or weeks to finish accounting work when you do it manually in a big organization. Remember, you have to retrieve invoices, arrange them according to dates, look for misplaced invoices, key in all the dates on the invoices, wait for approval, and then file all the papers. Time is money, and with AP automation software, you will definitely save time. AP automation software allows you to receive the invoices as softcopy via email, before capturing the data, and then automatically arranging and storing all the invoices.
3. Saves on Cost
Every organization aims to minimize costs, which is one of the key reasons you should invest in AP automation software. Printing paper isn’t cheap, and considering that you cannot re-use it, the costs will all too quickly stack up. With AP automation software, you go paperless, enabling you to channel the money initially used on printing paper somewhere else. Apart from saving on costs, reducing paper usage is also environmentally friendly.
4. Enhances Transparency and Betters Oversight
Transparency is critical for your organization to run effectively. With AP automation software, you can view all the invoices with a simple click. Additionally, you can track the process from the time the organization placed the order to when the organization received and approved the invoice. Visibility also extends to if the supplier has received payment or not. Moreover, the AP automation software stores invoices, so when you need any referral, you can easily access it. The properly stored invoices can easily be shared amongst different departments and be used to make better decisions based on the organization’s financial status.
5. Increases Productivity
With manual processes, the accounting team spends a lot of time retrieving, compiling, and filling invoices. They then have to carry out the lengthy, tiring task of feeding the data into the organization’s system manually. Essentially, accounting staff spend a lot of their time on routine tasks. However, with digitalized AP automation, you can eliminate the manual work, allowing staff to channel their efforts into more demanding work, thus, significantly improving the organization’s productivity.
6. Improves Organisations Relationship with Suppliers
The organization-supplier relationship is key. Without the suppliers, the organization has nothing to offer. Organizations, therefore, need to maintain a good relationship with the suppliers, and paying them on time heavily plays into this. With AP automation software, the processing of invoices is fast, making for a smooth and efficient payment process. Some suppliers notably offer a discount if you pay early, which is another advantage. Also, the technology enables you to save the supplier from paperwork, as all they will have to do is share invoices via email.
Minimizing costs and maximizing profit is the goal of every organization. As you work on cutting costs, consider investing in AP automation software. Organizations that have embraced AP automation software have reported significant improvements in the efficiency and accuracy of their financial department. Digitalize your accounting system today, and forget all the issues associated with paperwork!
