Accounts Payable (AP) is considered one of the important departments within any organization irrespective of the industry. Usually, Accounts Payables involve handling of sensitive money matters including payment records management, 3-way matching, and processing of invoices which is a paper intensive process.
The fact that the task is paper intensive makes it hard to maintain accuracy and efficiency when inputting data. Also, paper records pile up easily making the process of data entry quite cumbersome specifically where many invoices are involved. Automation of the Accounts Payable department then comes as a viable option.
Advantages of accounts payable automation
- Lowers costs and eliminates manual data
The manual processing of paper invoices is associated with high costs, duplicate invoices, entry errors, and loss of data. Account Payables automation can greatly help in streamlining the invoice paper processes, and reduce costs of operation. Users of Accounts Payable automation are able to quickly and easily capture all data. It is possible to achieve such low costs and easy preparation of invoices through the availability of accounting software integration, batch scanning, email, and web based requisition forms.
- Streaming the approval of invoice
The management and processing of invoices is the responsibility of the Accounts Payable department. Manual handling of such a process can take a long time and is at times very expensive. By automating these activities, it becomes easier and cheaper to manage and process invoices. In addition, digital processing and management of invoices makes their approval easy and fast as there is little waiting time to process, approve, and distribute orders and invoices.
- Automates 3-way match
Automation also makes it easier to transmit across digital frameworks. Electronic invoicing is also best to effectively index, rout, and process records for the 3-way matching. Users have the freedom to use codes for general ledger and cost centers which ensures accuracy of bookkeeping. The system also, ensures there is a clear match of all packing slops and purchase orders with their appropriate invoices. The successful matching of these processes opens up the document management system to route all invoices for approval and then payment. Therefore, having an Account Payable automation software in place makes work easier and faster.
- Compliance and integration of financial system
AP automation makes it easy to access as well as instantly act on invoices. The capturing of invoice data is easy and fast which allows for the automatic feeding of the collected information to already available financial systems such as Microsoft Dynamics. Such integration is very cost effective and advanced; allowing for the smooth facilitation and streamlining of all accounting activities.
So what is the take home? Automating your organization’s Account Payable department will simplify your accounting activities making them easier, faster and precise. With an automated Account Payable, you can appropriately capture, organize, as well as deliver all the necessary documents as required. Take the step to simplify the management and processing of your invoices today.