The accounts payable department is inherently fundamental to business operational efficiency and financial success. In the past, AP has been considered as a back-office function for companies whereas it is a key contributor to an organization’s bottom line through cost saving. Businesses receive thousands of invoices each day, which require time, effort, and resources to process. Given how important invoice management is to the fiscal health, AP automation has become a trend for start-ups, SMBs, and Fortune 500 companies to move away from time-consuming and error hidden manual invoice and payment processes to a fully automated workflow realize improved business efficiency.
Selecting an AP software
If you are looking to automate your AP processes, you should conduct thorough investigations and interviews of your solution providers. With the increase of SaaS companies adopting different technologies, it is important to seek a solution whose technology integrates and synchronizes with the existing business management system. Furthermore, it is critical to have the AP automation software support every invoice and payment process scenario to ensure true automation of AP processes. There is an unparalleled value of adopting an AP automation software that adopts AI and Deep learning technology as this technology helps in understanding your current needs through an analysis of your previous processes with what you desire, then providing a solution. You can understand how AI and Deep Learning technology work on our website to improve supplier-relationships in creating performance processes with extreme simplicity and maximum business richness.
Why AP Automation is Critical
Accounts payable automation involves the adoption of technology to automate and streamline AP processes by removing manual tasks to provide better visibility and control over important financial data. Like in any other aspect of life, automation makes life easier. Besides efficiency, which arises for AP automation, you will be able to realize numerous benefits including:
- Reduced costs: While labour costs have been growing exponentially over the years, the cost of automating AP processes is cheaper in the long run. Transitioning to an automated system helps you minimize the headcount involved in the repetitive process in turn lowering the total cost of operations of invoice processing.
- Business continuity: Automating your AP process means that data can be accessed from any location. With businesses realizing the benefits of remote working from the COVID19 pandemic, remote working can become a norm in your organization, which means your business processes will continue running with little to no interruption. Cloud-based AP solutions ensure that the AP process is integrated into your ERP solution for ease of accessibility by concerned parties.
- Team autonomy: Choosing a reliable and easily integrated, and intuitive AP automation solution, your business processes will become accessible to other departments including procurement and production, which aids in team autonomy. The production team will be able to send notification for minimum orders on raw materials that will prompt quick processing of purchase orders and payments to suppliers.
- Improved vendor relationships: An automated AP solution not only captures and exports data quickly. It also routes invoices into a centralized system that sees suppliers are paid on time. With happy suppliers, they will be able to extend early payment discounts whilst avoiding the risk of accruing late fee interest.
While beginning your automation journey, seek a true business partner, not just a vendor. One that will educate your team on AP automation and offer best practices and resources to achieve your financial goals.