Accounts payable automation, often known as AP automation, is the technique of handling accounts payable activities digitally rather than manually. It has changed the way businesses handle and accept payments.
Working of Account payable automation
Account payable automation enables buying companies to receive invoices, handle approvals, and process payments all from a single system.
Three components are covered by account payable automation
Invoice processing solution
An invoice processing solution can help you to receive invoices digitally or transform from paper to digital format. B2B/EDI connections, PDF invoicing, or receipt via a supplier portal are all examples of electronic invoicing. Thryv invoicing software allows you to facilitate payment in the way that works best for your business. Paper invoices are scanned and processed in the cloud using artificial intelligence or OCR to extract and save data.
Workflow and Matching
After the data is collected, invoices are either matched to buy contracts and goods receipts or are automatically forwarded to the appropriate team or individual for inspection and authorization. They are forwarded to the ERP or financial system for payment once they have been approved.
Audit and Archive
All invoices are securely saved, and audit trails of all invoice actions are accessible for financial audit reasons. The electronic archival of invoices also makes it simple to look for and locate invoices at any time and from any location. To get to know more information about account payable automation click here.
Benefits of Account payable automation
In a company, time is precious, and with an AP automation solution, you can save the time it takes to manually process invoices and payments.
Manual duties often consume 25% of the work week on average. By removing these duties, your AP staff would have 25% more time to devote to higher-value projects. In a regular 40-hour work week, that equates to an extra 10 hours each week that may be saved and better utilized!
Minimize the cost:
Automated solutions efficiently lower your expenses by eliminating wasted time on manual invoice processing and reducing orders of check printing materials, MICR toner, check stock, envelopes, and postage.
Our Account payable Automation solution is capable of the following:
- Costs can be reduced by up to 80%.
- You will incur no new software costs.
- When you use virtual cards, you can generate revenue
Moving to electronic payments and invoicing may also result in the creation of a revenue source. Each virtual card delivered generates a monthly rebate for your company, transforming your accounts payable department into a cash producer (usually close to 1% of total spend – paid monthly).
Virtual card rebates provide an instant return on the investment on any virtual card-paid transaction with a seller.
With more virtual credit card transactions you complete, the more money you make.
Increased Confidence and Control
By automating your account payable procedures, you have greater control and confidence that the system is working for you.
Get the benefits of AP automation and computerized processes without compromising cash flow transparency or control. It is possible to move to digital AP without outsourcing and with maintaining your present bank and ERP.
What’s the best part? You have the option of implementing automation gradually or all at once.
You won’t have to manually search and comb through documents to get what you’re searching for because all detail on your invoices and payments can be found instantaneously.
Our real-time business intelligence analytics allow you to access reporting and tracking from your kitchen table as simply as from your office. Automation also offers internal controls to limit the risk of fraud and human mistakes, as well as the ability to create customized procedures.
Secure and Safe
Your accounts payable automation solution keeps data on the cloud, providing you peace of mind knowing that your documents are safe and secure to the level of a bank. They also advised financial professionals to remain watchful, and that method you may take to protect your organization includes:
- Validating fraud controls regularly
- Developing new control strategies and putting them into action
- Investing in safer platforms.
It’s critical to stay current with technology and use every tool at your disposal to safeguard your company from scams.
By eliminating human AP processing processes and transitioning to the simplicity of a revenue-generating machine, you will save time and money.