Top 15 benefits of accounts payable automation
If you ask businesses of all sizes what their key goals are when it comes to accounts payable, you will likely hear "save time" and "/save money," while also preventing fraud. Yet, most companies today still use manual accounts payable processes despite the distinct benefits of automated accounts payable (AP). Accounts payable automation tools create efficiencies across the board that deliver lasting business and financial value.
How can accounts payable automation software be more efficient?
When you eliminate manual data entry and reduce errors, your AP process becomes instantly more efficient. AP automation solutions also enable secure payments and simple online approvals while generating an easy-to-follow audit trail, which you'll feel the value of both now and down the road.
By switching from manual to automated and eventually to autonomous, the entire accounts payment process becomes more efficient and effective.
What is automated accounts payable?
In a nutshell accounts payable automation engages the latest cloud-based technology to reduce manual accounting tasks, streamline business operations, improve accuracy and enable custom control over critical financial processes.
Accounts payable automation tools will make it easy for your AP team to submit invoices and process payments through a single platform—all of which can save time and money.
The benefits of accounts payable automation
The benefits of automated accounts payable are significant and they start with the two classic requests from accounts payable:
Time efficient
Accounts payable automation software is a game-changer when it comes to efficiency. By eliminating manual data entry and reducing errors, AP software transforms the accounts payable department into an instant asset to the greater business. Secure payments, simple online approvals, and an easy-to-follow audit trail are just a few ways that AP automation streamlines the accounts payment process, making it significantly more time efficient. The importance of reducing time spent on the AP process cannot be overstated - time saved here can be better spent on strategic business tasks that drive better cashflow management.
Cost savings
One of the major benefits of AP automation is the significant cost savings it brings. Manual processes, particularly those associated with data entry, storage, and postage, can be expensive and require an inflated headcount. Automation reduces these costs and ensures payments are always made on time, which also helps avoid late payment fees. Moreover, AP Automation software often allows you to make configurations to control the processing of certain invoices, providing further opportunities for cost management.
Fraud detection
Fraud is a significant concern for businesses, with many companies worldwide falling victim to it. In fact, billions are lost to fraud each year. AP automation aids in fraud detection, controlling access to invoices and flagging suspicious activity such as duplicate payments or false billing. This increased visibility and control can help your business avoid costly fees and maintain compliance.
Improve accuracy
Accounts payable automation tools reliably reduce errors and bolster accuracy. The software eliminates manual data entry and validates data against enterprise resources planning (ERP), so duplicate or erroneous payments are easy to detect.
Increase productivity
Eliminating manual work naturally boosts productivity—not to mention employee morale—across the company. Automatic routing and validation will also reduce errors and give your finance team more time to focus on the rest of their work. Many workers in the field report increased burnout in the face of growing invoice numbers, and automated AP software is a great way to relieve some of this burden and free up their time.
Bolster collaboration
Manual processes typically require paper to be placed in a specific location in a particular office—which is hardly convenient for today’s global, flexible workforce. Accounts payable automation software gives companies total control and access to their AP data and transactions, bringing teams across multiple locations together to better manage cash flow and vendor information. It enforces internal purchasing policies, creating a closer alignment between procurement and finance. It also shares information in real-time, making it easier for everyone on the team to collaborate, no matter where they are, and make sound decisions based on the latest financial data.
Streamline your process
AP Automation doesn't just save time and money, it also streamlines the entire AP process. By automating tasks such as invoice submission and payment processing, time can be redistributed to special projects, like renegotiating payment terms with key suppliers, establishing virtual card rebate programs, and improving working capital. As an added bonus, the AP team also can enhance their skill base with modern technology experience and strategic undertakings.
Full visibility and data transparency
Automated accounts payable solutions create instant transparency: You know where every invoice is. You can gauge employee productivity for reviews. Enhanced AP dashboards provide the visibility and transparency you need and your customers want.
Customized to your business' needs
Customize your AP workflows and route invoices where you need them to go based on various levels of authorization. Custom mobile apps and accounting software adapt to your company’s specific needs so you get everything you need and nothing that you don’t.
Better supplier relationships
The automation of AP processes leads to faster invoice processing, which in turn results in timely payments to suppliers. This reliability can enhance relationships with suppliers, ensuring preferential treatment and potentially better terms due to the business being seen as a dependable partner.
Download our Supplier Relationship Management Product Sheet
Early payment discounts
With the automation of the AP process, businesses can more readily identify and capitalize on early payment discounts, improving cash flow and saving money. This capability not only enhances financial efficiency but also provides a competitive edge in negotiations with suppliers.
Enhanced insight
AP automation offers advanced analytics and reporting tools, giving businesses unprecedented visibility into their financial operations. This insight allows for better strategic decision-making, identifying trends, and uncovering opportunities for further cost savings and efficiency improvements.
Helps ensure compliance
The automated tracking and reporting capabilities of AP automation simplify compliance with financial regulations and standards. By automating the storage and retrieval of invoices and payment records, businesses can ensure they are prepared for audits and comply with industry regulations without the need for extensive manual record-keeping.
Promotes scalability
As a business grows, its financial operations become more complex. AP automation solutions are designed to scale with this growth, handling an increasing volume of transactions without the need for proportional increases in finance staff or resources.
ERP integration
Integrating AP automation with ERP systems creates a seamless flow of data across financial management systems, enhancing efficiency and providing deeper financial insights. This connection enables more accurate forecasting, budgeting, and financial planning, aligning the AP process with broader business goals.
How to automate accounts payable
You can transform accounts payable and streamline the payment process with a company that provides leading integrated AP automation. You can start by booking an AP automation demo, reading customer reviews and creating a list of your AP needs.
To avoid AP automation challenges, it is critical to find an accounts payable software that makes it easy to transition from manual to a standardized and automated process. IT-reliant custom built and built-in ERP additions rarely fits the bill when it comes to automated AP software; your business should match its list of particular needs in terms of scalability and services with providers.
Build interest and advocacy within your company by sharing the many benefits of AP automation. Then, you can contact companies that specialize in automated accounts payable solutions to get a feel for their solutions and to better understand your options.
What can be automated in accounts payable?
It starts by shortening the business payments cycle, which can lead to early-payment bonuses. You can entirely get rid of paper invoices with a solution that electronically captures, digitizes and processes them—regardless of format.
Thanks to artificial intelligence in AP, you will gain new data insights and analytics that will support forecasting, planning and auditing. Speaking of audits, they, too, can be automated with AP automation solutions. All invoice data—from supplier details to payments—will be synchronized across the entire payments lifecycle.
What can be automated in accounts payable? Your company’s entire financial supply chain.
Significant accounts payable savings add up
While "save time" and "save money" may top the list of needs and wishes when it comes to accounts payable, businesses of all sizes can benefit from a wealth of efficiencies, financial protections and productivity that all result from automated AP software and processes.
With state-of-the-art accounts payable automation from Medius, you can increase efficiencies and decrease exceptions, saving both valuable time and money. Medius can also help you identify and mitigate fraud risks, optimize working capital and ensure that every invoice is paid on time.
You can contact us today to schedule a demo or learn more about the vast benefits of AP automation for your business.
