Today, the accounts payable department is one of the most crucial in business and the hardest one to streamline. Many organizations neglect their significance or do not understand how to utilize their potential. An automation AP system can transform the entire process. Automating the whole team improves company effectiveness. It also supplies vital monetary details, simplifies record keeping, and boosts overall cash management.
A few organizations are still doubtful this upgrade to their AP will have any positive effect. For them, it does not seem like a priority when it comes to digitization for the future. Besides, they are quite satisfied with their current solution, which is working fine. So, why change?
In this digital age, the benefits of automation are increasing so that you cannot afford to overlook them. For many enterprises, the question is not whether they are going to digitize, but rather when. It is, however, obvious you don’t want your company being left behind in this new wave of automation. On the other side, you do not wish to digitize simply because it is what every other company is doing. But there are a plethora of reasons why you should digitize your AP solution, which could ultimately add value to your business.
Here we present the main reasons why you should automate your AP as a top priority for your growing business.
1. Strategic Decision Making
While looking at the present state of your Accounts Payable department, it becomes easier to monitor where company money is going. It signifies you will gain access to these types of details, which allows you to make strategic decisions. The more accurate and updated your data is, the more informed your choices will be.
Many automated AP solutions get built with integrated tools that allow you to sort the needed information you are looking for by customized categories. It aids you in capturing the required details and search for the exact information you require to make proper decisions. You will gain the information you need to generate accurate budgets based on actual information and reliable data to eliminate as much guesswork as possible.
2. Enhances Cash Management
AP automation accelerates all processing, saves money, and offers accurate and updated financial details. These features all play into boosting the bottom line for your enterprise and handles your cash flow. There are multiple ways that automation allows you to improve cash flow management. For one reason, you can track the amount and see where it is at any given time. With automation, you will learn how much money is leaving your business, and you will have the best tools to predict your future cash flow patterns.
3. Receive Exact Information
A manual AP system always has the risk of some human error. The problem lies with even the smallest mistake, like miscalculating or mistyping a number, which can compromise the entire document/invoice. When you are leveraging excel spreadsheets, the question is not whether there are errors, but how many mistakes there are in total.
Accounts payable automation software captures incoming invoice details with 99% accuracy. Received electronic invoices go into the system for further intervention. In cases when you receive paper invoices, you can scan them into the solution, so they are processed just like every other invoice. It removes most mistakes that could otherwise show up and create issues with traditional manual processing.
4. Quick Service
The solution accelerates your invoice processing time significantly. It conveys to your vendors that you can provide them with fast turnaround times as well. Nobody appreciates when payments don’t arrive on time. But everyone does love it when they get paid on time or earlier.
Some automation solutions make it simpler for your suppliers to communicate with your AP department. These solutions allow you to give your providers with controlled access into your system so they can quickly check the status of a payment, submit any missing invoices, or update their contact or billing information.
5. Improved Security
With granular insights and improved security, automation solution offers another significant advantage. It can help minimize the number of fraudulent activities. The solution automatically locates duplicate or suspicious invoices and routes them to the appropriate department for further investigation. Also, you can set up custom elements to flag specific invoices over a certain amount or those who are a near-perfect match from an existing invoice. Moreover, the solution is also secured from all external tampering.
6. Allow Operational Flexibility
Online AP solutions are highly configurable. You set up the software to work with and enforce your organization’s custom policies automatically. Additionally, a cloud-based SutiAP enables your employees to access the solution from any location at any time. They will only need preset permissions and the correct password. Consistent accessibility signifies you can retrieve needed information whenever and wherever required. It also allows leaders or supervisors to issue payment approvals on the go.
7. The Bigger Picture with Invoice Management
You cannot handle finances accurately if you are unable to view them properly. Legacy systems such as excel spreadsheet or pen and paper-based reporting processes do not enable employees in various locations or workplaces to receive granular insight into company spending. With cloud-based software, it allows the SutiAP department to examine their monthly expenditures and allows greater accuracy in accruals.
With the new technologies, it is effortless to standardize and centralize invoice management workflows for complete visibility and effectiveness to improve the company’s cash flow. No matter you increase the number of early-pay discounts or remove manual procedures, there are multiple reasons to implement good accounts payable software once you start utilizing one, various opportunities for your business open, and expand into other areas too.