AP automation software - 5 important things

AP automation software – Top 5 things to keep in mind while choosing one

By definition, accounts payable (AP) is money owed by a business to its suppliers/vendors, which is reflected as a liability on a company’s balance sheet. As evident from the title, when you have multiple accounts payable, it is not just recommended but is necessary for a business to implement an AP automation software.

We’re in the early 21st century, and it is high time for the payments & accounts receivable (AR) industry to step into this modern era and find its place here. Most processes associated with accounts payable and accounts receivable are outdated, paper-intensive, manual, and somewhat inefficient. Over the past 10 years, we have seen many businesses implementing accounts payable automation (AP Automation), with an aim to streamline their invoicing processes. Using AP Automation, businesses can eliminate their use of paper checks and pay the vendors digitally. 

Accounts payable departments that are heavily involved in manual activities cannot make a high volume of payments on received invoices from vendors on time. This is due to the semi automated process which is ineffectively implemented. If your business still processes vendor invoices manually, this liability of making vendor payments on time will put the AP department out of commission. This would in turn slow down the entire process of reaching milestones that your company is otherwise all set to achieve. A business can process invoices faster when there is an AP automation software involved with the process.

The logical question – Which is the best AP automation software?

If you handle multiple payments on a daily basis, chances are you already have an ap automation process in place. But it also means there’s a chance this process is not optimized for your unique business requirements and objectives.

The process of selecting an ap automation software can be tedious and difficult, especially if you don’t have much technical knowledge. You need to understand you understand all existing processes, look for constant software based improvements, define goals that you want from your ap automation software. Here are some of the things you should keep in mind while trying to make a decision.

how to choose an ap automation software

Map out & understand your existing AP invoicing processes

Right from the moment that an invoice is received, there is merit in mapping out how long it ideally takes for the invoices to be entered into the system, get approved and then officially processed for payment.Try to piece together a complete list of people involved in this process and how each cog of your so-called accounts payable machinery works in synchronization with the other cogs in the process. 

This will help you get a better idea of what needs improvement and start looking for an ap automation software that caters to those exact points that need improvement.

Identify workflow improvement opportunities

When trying to streamline your AP department workflow, it is absolutely essential that you everything in your power to look out for opportunities where improvements can be facilitated through implementation of ap automation. Identifying problems before they cause panic is what defines a proactive approach. No workflow ever is truly perfect and this process of identifying problems will ensure that your workflow today is better than what it was yesterday.

Finalize your AP structure and define your goals

Once you choose an ap automation software that fits the bill, it is important that you know what goals you want to achieve out of this whole process. Constantly keeping an eye on your AP structure and looking out for improvements will help you set sensible goals which will contribute to the success of your efforts. It is essential for you to stay on track and keep making progress on your journey to success.

Information management consolidation

If your AP data is distributed across a multitude of places, it can quickly give rise to a lot of problems that come up when dealing with local information management. When you have a centralized system to take care of this, for example, the cloud, it really helps you understand the importance of centralized systems while resolving last-minute “crunch-time”. It is no secret that a centralized system is an efficient system.

Do your due diligence – choose the best AP automation software

Once you have internalized your goals truly, you will start to research and compare solutions that resolve your pain points. It is essential to know that there is no singular “absolute best” out there. It will take planning and focused efforts to get it right. Draw up an efficient plan that lays out the competitive advantages each software has over each other. Make a simple “pros and cons” list, that will do too. Do not shy away from this process. It involves a lot of grunt work to be put it, but its only going to save you more time and even more money in the future, if you do things right today.

If you still haven’t made up your mind – take a look at Karbon Payout.

Karbon Payout is an automated payments platform that lets you streamline all your payments in one single Dashboard. Be it bulk payment, vendor payment, payroll.

ap automation software like Karbon payout helps you

Our motto is simple – One dashboard for all your payments.

We are the preferred ap automation software for a lot of industry & business leaders, who love transacting with us on a regular basis. Here is why they love us – 

  1. Smooth vendor AP process – Our Payout platform is a multipurpose payments platform. Although, vendor payment is one of the primary implementations. You can configure Payout to automate your vendor payments and be relieved from the pain of sending payments on time.
  2. User-friendly interface – This allows our customers to spend less time making the payments and more time on growing their business. This is what makes us an ideal tool for startups & SMEs.
  3. No scope for errors – Because of a high degree of ap automation, there is no scope for error. This saves a lot of time and eventually money for the organisation by saving payment failure fee. Want to know about all the different types of fees your traditional bank is taking from you? Read here.
  4. Highly stable payment system – Our intelligent payment system will automatically select the best available payment channel from NEFT,RTGS,IMPS to ensure that there are no failures during the payment process. This has proven to reduce payment failure rates across all our clients.
  5. Revolutionized beneficiary addition & management – we have single handedly revolutionized the process of adding and managing beneficiaries in your account. In a single click, you can send payout links to your vendors. This will let them add their beneficiary details and automatically add these details to your system. This has allowed our clients to focus less on manual collection of beneficiary details and focus more on what truly matters in these tough and competitive times – growth and survival.

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Written By

Nikitha Reddy
Growth VP @ Karbon


FAQ

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