Automating accounts payable involves tools and processes that automate the manual aspects of accounts payable processing. This liberates the finance team member from entering data manually. Instead, the entire process happens digitally, starting with the most basic process of entering invoice payments and purchase orders.
With AP processing, you don’t only save time and money, but there are also many other benefits associated with it:
- Less overhead cost and more efficiency in the process
- Completely cut down on paperwork with easier access to digital files
- Increased accuracy with fewer chances of error
- Less monotony for your employees with more positive employee morale
However, if you are outsourcing accounts payable, make sure you pair the accounts payable automation software with smart processes.
Accounts Payable Automation Best Practices
The most common question asked by finance heads is how to make the accounts payable team more efficient. We have the best answer for you, implement an AP processing software along with these best practices.
- Dig into your Current AP Process
Implementing an AP processing software is not a magic process. It only works well when you have a standard process in place that can be automated. For this, you need to dig into the process and map out each and every step from start to end. Once you have completed this task, you can match the current workflow with the software capabilities and eliminate redundant tasks. Hence, standardization is vital for automation.
- Work as a Team
For accounts payable automation, you need the commitment of each member of the finance team. Also, ensure all the CFOs have a one-on-one session with their team members to have a smooth switch to automation. In these sessions, you need to take notes of any feedback and make sure that the software’s proposed solution includes all the real-life pain points faced by the team. In the end, you will have a solid case for your AP automation software.
- Automate in Phases
The whole AP process is a lengthy one. It doesn’t mean you have to implement all the changes at once. The best way to automate the process is in phases, giving you enough time to troubleshoot in between. Speeding the installation of your accounts payable software can implement it faster but can lead to an improper setup. It will lead to greater issues for you to tackle later; hence the slower the process, the better it is. In addition to this, you need to give your team enough time to adapt to new processes, ensuring maximum automation benefits in the future.
Benefits of Accounts Payable Automation
The accounts payable automation process is a huge win for the business. There are many benefits once the process is automated.
With AP processing, you can cut down on invoice processing time, enabling you to automate tasks such as general bookkeeping, invoice payments and processes, coding, routing, and many more. Along with this, automating accounts payable processes saves on invoice processing costs.
Managing accounts payable manually can result in inaccuracies on invoices. For this, your employees will have to pay incredible attention to identify the errors, and even then, your employees are susceptible to human errors. Therefore, automatic invoicing can catch and flag those errors quickly and accurately, which is not possible with the human eye.
These are just a handful of benefits you can realize from accounts payable automation. Outsourcing accounts payable can quantify the results that you share with your team to encourage and push your accounts payable processes to new heights. Besides, automation also provides you with more time to focus on forecasting and reporting. Just imagine what your company can do with the extra time and money!