A Deeper Look Into Understanding Accounts Payable Automation
Why Accounts Payable Is Important In The Company
Accounts payable automation has become increasingly important for businesseseeking to optimize their cash flow. Automation of accounts payable processes reduces the amount of time and resources needed to process payment and provides greater access to payment data for executives. Evaluating why accounts payable is important and how to implement satisfactory automated solution is process that can be broken down into four distinct steps.
Identifying Needs and Goals
The first step for organizations considering accounts payable automation is to identify the needs and goals of their business. Analyzing current accounts payable state and regulations governing any existing shared services arrangements, consumer protection legislation and the sensitivity of customer data is necessary. This will help assess potential advantages to automation that can be targeted and help ensure compliance with applicable laws.
Establishing Preferred Technology
The second step is establishing the preferred technology for streamlining accounts payable. Taking an enterprise-wide view of accounts payable to review operational processes and associated technology, from invoice entry to payment authorization, can reveal improvements and processes that can benefit from automation. This includes adopting cloud-based accounts payable automation technology that streamlines the payment cycle, provides better centralization, fewer errors, and enhanced visibility and control of payments.
Evaluating Softwaresolutions
The third step is to evaluate available Softwaresolutions in context. To select the most effective and cost-efficient automated accounts payable solution, business must ensure it meets their specific financial, technical and regulatory requirements. In addition, potential Softwaresolutions need to be evaluated and tested to ensure that they offer secure data management and payment processing capabilities.
Integrating Automation Into Existing Structures
The fourth and final step is incorporating accounts payable automation into the existing structure. Automation of accounts payable requires migrating existing data and transitioning existing processes to secure cloud-based automated system. This may necessitate modifications to purchasing and accounts payable policies, processes and general ledger systems as well as updating referenced data. It is important to select technology that supports business objectives, is secure and reliable, and delivers the best value for the organization.
By investing in automation of accounts payable, business can improve their financial management, increase visibility, reduce costs, optimize cash flow and enhance the overall quality of their accounts payable operations. It is important for organizations to evaluate the steps required to accomplish accounts payable automation in order to achieve the most successful solution for their business.
