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Accounts payable automation assists companies in optimizing invoice-to-payment processes by eliminating paperwork and mitigating invoice processing costs.
FREMONT, CA: Business accounting should be up to speed with current processes. The primary step towards getting back to normal will be making tasks easier and adding more control. How can accountants attain that? It is recommended that organizations should automate their accounts payable to save costs and add remote-work flexibility. AP Automation or accounts payable automation is the technology that leveraged a digital system to mitigate manual and repetitive tasks like data entry and writing checks. Read on to know more.
With automation, enterprises can submit invoices, manage approvals, and process payments – electronically through a single platform. Businesses leverage automation to reduce or eliminate manual intervention and boost operations such as approvals, which tend to take longer without proper controls. Leveraging business process automation to handle accounts payable reduces the time required to process an invoice. Payables are routed according to prescribed business operations firms determine, automatically and instantaneously. Deploying an AP automation system means no one in the organization will ever have to spend another second searching for an invoice.
Manual tasks in AP like data entry and approval follow-up lead to high hidden costs. Processing an invoice can cost up to $15, compared to $5 or less with an automated system. Automation saves labor costs by mitigating 83 percent of data entry and accelerating other processes such as payments and invoice matching and hard costs for document storage, postage, and more. It also assists reduce the risk of making duplicate or late payments or inadvertently overpaying invoices.
Invoice systems enable as many people as needed to collaborate on any particular payable in real-time. No matter where they are, everyone with an interest or stake in an invoice can access it to confirm or dispute alterations, seek clarification, or explain discrepancies—all with just the click of a button. Automation offers visibility into the approvals and payments workflow. This means that AP risks and fraud like false billing, duplicate payments, and fraudulent transactions can seamlessly be tracked within the system.