What is AP automation?
Accounts payable (AP) automation software empowers businesses by reducing manual tasks like data entry and freeing up cash flow. You can submit invoices, manage approvals, and process payments through a single platform with quick approvals, enhanced visibility and control over important financial processes and data.
With automation, companies can track invoices electronically, streamline workflows, and have a central repository for invoice data that can be accessed anytime, anywhere. Instead of spending time on manual tasks such as data entry, handling and filing physical documents, looking up each TIN individually, and printing checks, employees can focus on more important tasks such as handling exceptions, answering questions from suppliers, and maintaining the master vendor file.
10 Benefits of Accounts Payable (AP) Automation
Automating accounts payable processes adds value while freeing up your team to focus on improving the back office. Here are some of the key benefits of AP automation.
1. Time savings
Traditionally, invoices would sit on desks or wait in email inboxes for approval. Automated routing cuts through those delays and streamlines the approval process. Easy-to-use digital indexing and data fields allow for simplified document entry and retrieval, saving countless working hours that may have been spent searching for lost invoices or missing PO’s. Automated workflows route invoices to the correct departments seamlessly while allowing busy managers to be notified via email and approve or reject with one-click.
2. Low-cost invoicing
Business process automation saves labor costs and cuts down on hard costs, such as office supplies and postage for interoffice mail. The advantages over paper are plenty, and your bottom line will significantly improve with our solution. Just one file cabinet’s worth of documents costs $1400 a year on average.
3. Improved accuracy
Opting for AP automation translates to reduced errors. AP automation software is designed to protect you from some of the most common errors. There’s no need to type in invoice headers or line-item data manually.
4. Enhanced insight
With robust dashboards, it’s easy to see where an invoice is sitting and who to contact in case of delays. Data can be imported and exported with real-time access—perfect for reporting and analysis.
5. Fraud protection
AP automation software can help your business safeguard against fraud by controlling which employees have access to invoice approval and the release of payments. You can build approval workflows with multiple people and increase the chances of catching fraudulent invoices before the payment is processed
6. Increased transparency of data
Enhanced reports make tracking employee productivity easier, which can also come in handy for employee reviews. Managers can tap the tool with one-click to see all performance and productivity.
7. Low-cost data preservation
IRS recommends saving records for up to seven years. Storage costs for all that paperwork can add up. Our solution is digital and in the cloud, hence saving you thousands of dollars.
8. Easy auditing
Comprehensive software can help you with document management, which can be beneficial for auditing. The system links all documents and messages involved with each transaction, while matching invoices with purchase orders and receipts. This searchable audit trail reduces your chances of losing important paperwork.
9. Integration with existing accounting software
Our solution can easily integrate with your company’s existing ERP software, databases and accounting software like Quickbooks.
10. Early-payment discounts
Most vendors offer early-payment discounts and AP automation software will allow you to do just that.
Paper-based processes are expensive because of the time-intensive manual tasks inherent in invoices and paper checks. By utilizing an AP automation solution, your organization can eliminate paper invoices and checks entirely, while reducing your processing costs by more than half along the way! Get in touch with C.A. Reding Company today by filling your quote!