In today’s day and age, organizations have adopted digital technology such that they cannot sustain without it. Documents are being shared via email and getting digitally signed. Automation has taken over through most of the businesses. However, finance teams are still struggling with the same old paperwork, manually filing expenses, accounting entry, etc. In fact, with this methodology, companies incur many costs. Accounts payable automation software can help reduce the business expense by streamlining and automating your payables.
In this blog, we are discussing how to identify the need for accounts payable automation tool in your department. If you want to know more about accounts payable, read about it here.
Let’s dive in.
Which are those 5 signs that shows the need for AP automation software?
Losing productive time: If your finance team is losing a lot on their productivity, then it’s time to look back into the process. When an invoice is processed manually, there will be no trail left behind apart from a few paper-based records which are vulnerable to get lost, tampered or crumpled. Much time gets wasted while searching for invoices and payment receipts. Finance teams might struggle to get accurate information and end up making mistakes like double payments or wrong data-entry.
Delayed vendor payments – Does your finance team run from pillar to post to get the approval for vendor payments? If that’s the case, then the organizations are at a loss. By paying vendors on-time, organizations can get preferential treatment such as early discounts, credit note, etc. With delayed payments, vendors tend to lose confidence in the organization and therefore not becoming a preferred partner.
Erroneous data-entry – If you keep encountering multiple errors, then there is something that is missing. Manual processes are prone to error. Entering a wrong number, or losing an invoice, duplicate payments or miss crediting an invoice that was paid can uproot the entire financials of the organization and put it under risk. It will take hours together to fix this, thereby losing a lot of time and energy of the team.
Team inefficiency – Is your finance team burning out much energy and getting bored with work soon? That’s because manual processes can be mundane and exhausting, eventually causing employee burnout. Instead of doing repetitive tasks, finance teams can use their time to make data-driven decisions by analyzing business spending data.
Getting future-ready – Is your data safe enough in case any serious physical damage occurs at your workplace? When the financial records are being maintained physically, it is bound to get damaged or tampered, thereby causing a loss of information to the organization. Instead of taking multiple photocopies or storing them in large file cabinets, it’s always advisable to store the records data.
What does an accounts payable automation software do?
Accounts payable automation is a great way to improve business processes and reduce cost. With the right solution in place, you can eliminate many of your current pain points, making life easier for both your team and your vendors.
An accounts payable automation software helps in:
►Having a centralized process by allowing you to take control of all the purchase-related aspects through a single software or via a mobile app, helping you to formalize rate contracts with your vendor, make payments, and process invoices, etc.
►Tracking the status of all the processed purchase orders, invoices, pending payments. Process payments with powerful API banking solution and track them in real-time. Notify your vendors about the status through email / SMS.
►Customizing an approval workflow as per the organizational terms that send out essential information about each transaction to the next approval authority.
►Matching invoices against purchase orders and GRNs and hence, eliminating the chance of data mismatch and miscalculation.
►Allowing the finance team to communicate and collaborate more effectively through an internal chat system and address any concerns that arise.
►Keeping your finance team audit-ready. Paperless records are stored, and the data gets retrieved at any instant using a simple built-in search feature.
Which is the best accounts payable automation software?
Finly can enhance your accounts payable process. It is a machine learning powered finance management and automation suite, helping businesses to streamline and automate your accounts payable.
The benefits that CFOs have seen after moving to Finly are the improved accounts payable, faster invoice processing time, streamlined processes, total control on budget spend, increased productivity, effective communication, and collaboration, faster invoice processing, and the minimized risks associated with regular invoice payments. This yields to a better relationship with vendors by allowing them for preferred service and better deals.