17 Nov
Accounts Payable Automation refers to automation, that is used to update and automate account payable(AP) processes and workflows. It also helps remove manual tasks and provides better visibility and control over essential financial data. AP Automation can save time and money while protecting your business from a costly error. In almost all cases, accounts payable automation practices makes life easier. But it is still an investment, although one that can often pay for itself.
AP automation becomes essential, particularly for companies making business-to-business payments. The accounts payable process serves as the key record of the funds to be paid for goods or services that have been received already. In this article, you will find benefits ,tools and best practice for account payable automation.
Accounts Payable Automation?
Accounts Payable Automation is a technology that shifts the burden of tedious work. It shifts that burden usually manual accounts payable tasks from accounting professionals to software automation.
AP Automation is a set of tools and procedures to automate the everyday things that your finance team does manually. Usually, finance teams enter invoice data into an excel spreadsheet and then manually email that spreadsheet for an approval signature.
AP automation is the process by which accounts payable processes are handled digitally.
Benefits of Accounts Payable Automation
Accounts payable automation software empowers businesses by reducing manual tasks. It also submits invoices, manages approval, and processes payment through a single platform with swift confirmation and better visibility. It also enables control over essential data and financial processes. Here are some key benefits of Ap automation.
- Time-saving
- Improved accuracy
- Low cost invoicing
- Fraud protection
- Enhanced insights
- Easy auditing
- Low-cost data preservation
- Integration with the existing system
- Early payments discounts
- Increased transparency of data
How Does Account Payable Automation Work?
Accounts Payable Automation software can convert your suppliers’ invoices into standard digital formats, then push them through a digital workflow that is completed with paying suppliers.
Start of this process, AP automation uses optical character recognition to extract information from invoices.
Some products use machine learning to learn patterns over time and improve accuracy. It allows for accounting teams to eliminate the need for manual intervention for most invoices.
AP Automation Software
AP automation software help companies with invoice management, empowering them to manage a large volume of invoices and financial transactions between themselves and their suppliers.
This software can be used by accountants and members of the accounting department responsible for accounts payable. It can also be used by managers and executives to monitor AP processing activities.
Automated Accounts Payable Tools
Four Interesting Automated Accounts Payable tools that can help to solve your AP automation problems.
Spendesk is a comprehensive spend management solution that automates the awful aspect of expenses, invoicing, reports, and company credit cards.
This tool automatically verifies and stores every proof of purchase within the platform from the moment a transaction is made.
This tool is designed for Accountants. Beanwork automates reporting and invoicing. It is very helpful for companies that are going through an audit. It is also a good tool for importing and scanning invoices automatically.
Gatekeeper describes itself as an all-in-one contract management platform for everyone from the operation team to finance. It is a great deal for companies with lots of contracts, particularly with regular vendors.
Gatekeeper integrates with CRM software to link contracts with other customers’ records.
Stampli automates invoice processing similar to Spendesk. But without the other payment tools like company cards and expense automation. It also has a supplier portal. So trusted vendors can also submit invoices directly into the system
Why Automate Account Payable?
There are many reasons to automate AP. It can help drive down your business costs.It can also help you scale AP more easily as your business grows by reducing the need for more people to hire.
AP automation also provides a tool that can help to manage cash flow and payments. By making the payment process smoother and faster. It also increases your ability to capture supplier payment discounts.
5 Proven Accounts Payable Automation Best Practices
Here are the five proven Accounts Payable Automation best practices to dramatically, increase efficiency, improve compliance, and boost productivity for your AP department.
- Involve your AP team from day one
- Plain for complexity
- Use modern Software to Automate AP workflows
- Leverage the power of integrations
- Focus on the user experience
Wrap up
Accounts payable is a key business process in every organization. While it protects your business from costly errors. Implementing software for AP automation can empower businesses by reducing manual tasks. Automated AP can also submit invoices, manage approval and other payment processes through a single platform. It can also control important data and financial processes.
Marjina Muskaan has over 5+ years of experience writing about finance, accounting, and enterprise topics. She was previously a senior writer at Invyce.com, where she created engaging and informative content that made complex financial concepts easy to understand.
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