Handling your accounts payables habitually turns out to be a crucial yet time-intensive task. Globally, forward-thinking businesses are addressing this challenge by adopting smart AP automation technologies. Rather than channeling manual efforts to automate your accounts payable process, it makes sense to digitize the same. This would streamline the process significantly, eliminating human errors that can jeopardize the system. This ensures a better control and visibility over crucial financial data.
Simply defined, accounts payable automation involves the use of technology to give you a hassle-free accounts payable mechanism. This sophisticated technology has revolutionized the way businesses used to handle their invoicing and accounting process. Powerful AP automation tools like Monite are gaining popularity across different industry verticals.
What does an AP automation software do?
With AP automation, your business can process supplier invoices effortlessly. Besides, since there would be no human intervention, you would have a fast and seamless digital workflow. The comprehensive system also integrates into other platforms in your accounting and billing departments. The process involves the capturing of data from invoices in the digital format. In most of these tools, you have a scanning and capturing feature that helps in detecting characters.
An accounts payable automation tool can help you save costs significantly. Besides, you need not waste your time doing manual tasks. This way, you can get your vendor portfolio optimized. It would also prevent erroneous and duplicate payments. At the same time, you would be able to capitalize on the discounts on making early payments.
How does an AP automation tool work?
- Invoice receipt
Using the AP tool, you can receive the invoices electronically into the system or convert paper invoices into electronic ones by capturing the image. There are different methods of invoicing like using B2B/EDI connections, receiving invoices through the portal of a supplier, PDF invoicing, or any other means. Once the system extracts the invoicing data, it can securely store the same in cloud.
- Verification and workflow
Once the AP automation software captures the data, it matches and verifies the invoice with the goods receipts or purchase orders. Then they get routed automatically to the respective department for review and approval. Finally, it reaches the accounting or ERP system to process the payment.
- Auditing and archiving
The system securely archives all the invoices. Besides, it is capable of auditing all the actions on invoices to make them available easily for audit or financial purposes. Besides, when you electronically archive your invoices, you can easily obtain them later on by searching. This ensures that you can retrieve these invoices at any time, and from any location.
Why should you use an AP automation software?
- Save time
With AP automation, the invoice processing and approval mechanism becomes much more efficient and faster. You can do away with the manual efforts for processing invoices. This reduces the involvement of your staff. Ultimately, you can entrust your workforce with other crucial responsibilities, thereby optimizing your productivity.
- Better efficiency
Through automation, you can streamline your payment and invoicing process and mitigate the approval time. This gives a boost to your efficiency. Besides, you can integrate automation solutions to your existing financial mechanisms. This way, the operations become much more efficient. Information flow between different departments and systems becomes transparent and fast.
- Enhanced accuracy
Through accounts payable automation, you can enhance your accuracy by removing human efforts. Payment errors can be disastrous for your organization. Besides, the system can detect suspicious or fraudulent transactions and alert the designated authorities. The invoice data gets validated automatically against the ERP information at the beginning of the process. This refrains your department from making erroneous payments before they process them.
- Reduce expenses
Currently, a significant number of business firms are controlling labor costs by integrating AP automation systems. With these tools, you can slash off the cost of invoice processing and make time savings. At the same time, you won’t have to incur expenses associated with document postage, storage, and invoice production.
Considering the strategic advantages of using an accounts payable automation software, you might consider using one of these tools. It would be an intelligent move to work closely with the established software developers who are capable of incorporating customized features into the software. This way, your organization can benefit from enhanced efficiency, productivity, and reduced costs.