In the past, the accounts payable process had to be taken care of by highly trained professionals. However, this is no longer the case. Now, accounts payable automation is possible for businesses that use accounts payable software. Accounts payable automation, also called AP automation, offers several significant benefits. The benefits include quicker and easier audits, time savings, paying all invoices on time, fewer mistakes, enhanced security, and even the potential to streamline the workforce. Read on to learn more about how accounts payable automation can benefit any business.
The essential benefits of AP automation
Audits are quicker and easier
One of the most important benefits of accounts payable automation is that audits are much quicker and easier. This is because you know exactly where all the data you need for the audit is. Modern accounts payable platforms have tracking features that allow companies to follow accounts payable invoices through the payment process. Companies that have people doing accounts payable manually may find that what they need for the audit is not where they expected it to be. This is because each accountant has their quirks, even if companies train them to process invoices similarly.
Accounts payable automation saves time
The benefit that draws most companies to accounts payable automation is its capability to save time. It can take accountants a long time to process multiple accounts payable invoices. However, a modern AP platform that allows accounts payable automation can take care of many invoices quickly. This frees up a company’s accountants to attend to other manners that must be completed manually. This allows a company’s accounting department to focus on the most important issues.
Pay all invoices on time with accounts payable automation
Another essential benefit of accounts payable automation is that it helps companies pay their invoices on time. Companies that handle accounts payable manually may find it almost impossible to pay all their invoices on time, considering that invoices pile up quickly and have various due dates. This is an especially big problem for companies with small accounting departments. It is even worse for startups where the CEO must do all the accounts payable processes themselves. However, even very small companies can ensure they pay all their invoices on time by using accounts payable automation features.
Not only can automation help companies ensure that they pay all of their invoices on time, but it can also ensure that companies don’t pay invoices until they absolutely have to. This is because companies can schedule invoices for processing on the last day that they can possibly be paid. If money is tight, this extra time will allow companies to get together the money they need to pay all the invoices on time. This will help companies avoid the expense of penalties that often come with paying an invoice late.
Automated AP processes are more accurate
It is relatively common to make mistakes when paying invoices. These problems can be avoided with AP automation. As long as the AP platform is set up correctly, it’ll be able to process all invoices accurately and categorize all accounts accurately. This can afford the penalties that may come with paying an invoice incorrectly and the confusion resulting from miscategorizing invoices.
Automated AP enhances data security
Perhaps the most underrated benefit of using an automated accounts payable platform is the increased level of data security it provides. The more employees have access to sensitive financial data, the less secure this data is. This is true even for companies that have a full staff of trustworthy accountants. This is because the more employees have access to data, the more ways a hacker can get access to the data. Hackers will have more employee accounts that they could possibly hack into to get access to sensitive financial data.
Accounts payable and receivable data has been stolen and sold on the black market many times in recent years. Not only does this lead to financial losses for the company, it can also negatively impact a company’s reputation. It is even possible for a company that suffers a data breach to have to deal with lawsuits from third parties who have had their data stolen. Using an automated accounts payable platform reduces the number of employees who have access to sensitive financial data because fewer employees will be needed to process the accounts payable invoices.
AP automation may allow you to streamline your workforce
Accountants with accounts payable qualifications often command high salaries. Companies that can automate parts of their accounts payable processes may not need to hire as many accountants. This can save the company a great deal of money.
Finding the right automated AP platform
AP platforms offer many different benefits. However, companies can only see all these benefits if they choose the right platform. It is important that companies do their research to ensure the platforms they are looking at have been used by other companies in the same industry. It is also important for companies to check the feature list of the platform they are considering to ensure it has all the features they need. Finally, it is a good idea for companies who are searching for accounts payable platforms to get a free trial so that they can try the platform out for themselves and ensure that it is easy to use.