It’s the early 21st century, and it’s time the payments & accounts receivable (AR) industry steps into the modern era. If your company is still processing invoices manually, this increases the firm’s liability.
The vendor payment processes associated with accounts payable are usually manual and inefficient. Fortunately, many businesses are now implementing accounts payable automation, which streamlines their invoicing processes entirely online.
Thanks to AP Automation, businesses can eliminate their reliance on paper checks and pay their vendors electronically.
- How Does AP Automation Affect Liquidity?
- Busting Myths About AP Automation Process
- 7 Ways These Tools Are Transforming the Payments Industry
How Does AP Automation Affect Liquidity?
- With reduced invoice processing time, AP automation enhances end-to-end visibility, thereby reducing losses.
- Cash flow rules everything in a business. With all the approval metrics it owns, AP automation will ensure only the right person will receive the right invoice.
- The repeated reminders until the payment is approved and paid will ensure payments are made promptly, and error-free.
- Fully transparent accounting makes sure your business money isn’t going out too quickly.
- Lastly, it fully ensures sure your company doesn’t bleed money from all the delayed payment charges.
- Matching invoices with purchase orders also ensure vendors and workers keep their side of the bargain while doing business.
- Any discrepancies in invoices can help you resend it back to the vendor. This also makes sure you don’t lose your money over trivial accounting errors.
Busting Myths About AP Automation Process
Let us clear the air about AP automation once and for all.
- No security breaches are possible when it comes to automating the AP process since it is built on a robust cyber security platform.
- Your data will not be accessible to anyone except you and the vendor you are dealing with.
- A 360-degree automation process will still keep sensitive transaction data in encrypted code that even your own employees can’t access.
- Individual tools are not exponentially more functionally than automated vendor payment software.
- It is not very difficult to shift from manual accounting to automated, provided you choose the right vendor payment software.
7 Ways These Tools Are Transforming the Payments Industry
Easy Vendor Audits
The biggest change you are likely to notice once you switch to AP automation is the easy vendor audit process. If you can accelerate invoice processes using accounting payable automation, you will see some immediate changes.
More Productivity Equals Growth
The benefits of implementing AP automation are not only limited to vendors. By configuring automation software to handle things most efficiently, you can build a growth-oriented culture, specifically tailored for account payable processes.
Vendor Relationship Enhancement
Digital payments strategies and AP systems that process automation can help enhance your relationships with vendors, enable faster payments and improve visibility and reconciliation.
Implementing a strong AP automation system will help the organization quickly gain popularity among the top vendors in the niche or industry.
Minimization of Paper Checks
Implementing AP Automation is cheaper than sending checks through snail mail. The reduction of paper usage within the organization is also environmentally sustainable.
Cash Flow Optimization
AP Payable systems can monitor those advance payment allowances for optimizing cash flow. Instead of paying vendors with a paper check, automation allows you to electronically process and approve payments whenever, wherever!
Making payments within the organization also gets simplified by implementing AP automation. Getting paid on time is not only important for your vendors but also the employees working for you.
Eases Transition From Manual to Digital PaperWork
The covid pandemic taught us a big lesson- The show must go on no matter what happens in the physical world. AP automation strives on this very principle.
No more excuses for being forgetful about office paperwork or authorising payments. All that a business needs are vendor payment software to keep the business transactions running.
This also ensures employees get their salaries credited on the promised date. This builds a sense of trust and they are more likely to stay with an organization that pays them on time.
You may be wondering, “Could this work for my business?”
The answer is yes! Have a look at Payout Solutions.