Why an organization should adopt Accounts Payable automation?

October 11, 2018

Can you recall an event, a conference or a business summit that you have visited in the last few years, which didn’t speak about automation?

Whether it was Machine Learning, Artificial Intelligence, Robotic Process Automation or any other technology, automation is the topic of interest everywhere. The rise of digital transformation has helped to propagate automation into various verticals of the industry but unfortunately, the Accounts payable department never really got updated with the latest technology.

Many organizations still rely on outdated and inefficient paper invoices. It becomes hectic for organizations as well as employees to sort out and tally the expenses manually every month-end. Below are the reasons why every organization should streamline their processes with accounts payable automation and start their digital transformation journey.

Eliminate human error:

Anytime you enter any data into the system or write manually, there is a chance that you’ll get a number or two wrong. One of the key responsibilities of an accountant is to enter the data manually from the invoices, do the calculation and double check for an error. But, when a person is working with huge stacks of invoices on regular basis, errors are bound to happen. Even a simple mistake, in addition, can cost you money and time as you untangle the mess. Automating Accounts payable process will not only help you eliminate human error but also help you save the expenses as well as time spent on identifying and resolving the error occurred.

Improve productivity:

Automating AP process means higher productivity and fewer errors. When the organization implements automation in their accounts processes, the time taken by a staff member for processing number of invoices per month can reduce 8 to 10 times. An automated system allows employees to get more work done in little time. It justifies the age-old saying of ‘Work smarter, not harder’. By automating you release workers from their repetitive tasks and you can use their talent in more productive ways. Automating AP process means getting your team to on more important tasks and get other important work done.

Reduce costs:

Invoices that arrive at an organization through various mediums like Fax, mail, or e-mail and all the invoices can be in various formats as well. Even though you have no control over how many invoices come, you surely can control the amount of paper waste. Manual invoice processing can be paper-intensive, however, if the invoices are automated it can surely save some paper costs and costs related to documentation of the paper invoice. Using invoice automation, organizations can use the significant savings that will add up over time.

Increase visibility:

Automating AP process will increase the visibility of your processes so that you can detect the cash flows trends, it will also help in forecasting expenses and taking well-informed business decisions. Whether you are tracing purchases, checking approvals, or matching invoices/payments to purchase orders, you will get real-time access to the status of your AP processes. Automating this process will make it more transparent and accessible anytime, anywhere.

Eliminate Fraud:

Every business is liable to fraud, mainly employee fraud. From identifying false claims to expensive business ‘dinners’ – Identifying and proving fraud was one of the major issues AP department lacked in. But an automated AP process decreases the clerical problems surrounding these claims and create an easier system in which to track and monitor your employee expenditures/compensations. A proper AP Automation system will help you store and monitor all AP documents giving you a crystal-clear image of your expenses.

Every organization should implement AP automation to revolutionize and transform the business by eliminating paper cost, reducing manual keying, costs and errors, optimizing cash flow, forecasting expenses and taking a well-informed decision.

Automation reduces manual effort from purchase to pay. Digitization and business process automation will help organization leap beyond the barriers.

Author: Prasanna Shindikar