How Can Accounts Payable (AP) Automation Aid Startups?

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How Can Accounts Payable (AP) Automation Aid Startups?

CFO Tech Outlook | Wednesday, June 02, 2021

Automation Payable Account is key to scaling your startup successfully. As the management of the invoices involves the entry of tedious information and backward communication between external and domestic stakeholders, it can take on repetitive tasks as a prime candidate for the automation software. This is how to automate the processing of your invoice.

FREMONT, CA: As your organization's financial head, you can ask what exactly you may do to improve account payable activities and generating income. Below are few good AP automation best practices to aid your startups.

Checking weekly payment limits

As part of their online services, some banks provide straightforward bill payment facilities. This might be a simple initial step if your firm is starting. However, the monetary value or number of payments you may handle per week is limited in many bill payment systems. Once your firm begins to expand, you will fast exceed these restrictions and have to operate on a particular platform for account payable. Before you hit them, make sure you know the constraints and switch to a complete payable tool to avoid a significant payment delay.

Not trusting the default rate of exchange.

The international payments exchange rate is not high on every payable platform: You might invest hundreds of extra dollars to ensure that your suppliers get paid the agreed rate. To prevent these transfers, you can use foreign payments via a monetary converter site such as TransferWise or CurrencyFair, which provides you a better exchange rate; or you may interchange the exchange rate on the platform with some paying systems.

Approving automatic notification

As the number of permissions you require for each payment increases, your company is likely to increase. Every time the correct amount is paid, it is essential to create long-term connections with trustworthy sellers. Use the workflow automation software integrated into your AP system to automatically route your invoices to the correct approvers depending on the dollar worth of the payment or the department assigned to you to speed up the process between receipt of a seller's invoice and payment. To avoid invoices from being maintained in the approval process, you may set up your payable system to alert approvers by email every time they wait for an invoice.

Keeping records of all payments available for audit.

To save you hours of trouble by being audited or by a possible investor or buyer, utilize the accounting software to archive all of your invoices in one location and keep your electronic paper trail. You may attach digital copies of items such as client contracts or estimations to each invoice if your platform can ensure that nothing is lost and that you can obtain easy access to the necessary data. Since automated AP systems record approvals for each invoice, you may show the payment signature, account code, and department responsible.

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