Boosting Operational Performance With Accounts Payable Automation
Ap Automation Best Practice
The task of accounts payable processing is invariably bound to consume sizable portion of finance team?s time and energy. Employee headcount and staff resources dedicated to this task process can quickly become heavily strained and much of this effort is the result of manual operations involving tedious, paper-based accounts payable processing activities. In order to free up time and reduce errors associated with manual operations, more and more organizations are turning to accounts payable automation software to improve operational performance.
Accounts payable automation software sometimes referred to as AP automation or automated payment processing offers an efficient, effective, and cost-friendly solution to streamline and fully automate many of the processes associated with accounts payable operations. Through filters and rules, the software pre-defines which documents should take which processing path and define how they should be treated ensuring the elimination of mistakes typically associated with manual data entry.
Organizations employing AP automation typically experience rapid and appreciable improvements in their accounts payable performance, particularly in areas such as check processing, supplier discounts and payment advances, invoice exceptions, and payments. With the use of this software, company can significantly reduce payment processing time, minimize human errors that occur with manual data entry, review exceptions in real time, and consolidate multiple payments into single integrated payment to vendor.
In addition to its efficiency and accuracy, the use of AP automation software helps improve operational performance through improved working capital management and by providing heightened level of supplier intimacy. Organizations using this kind of software are better able to identify areas for improvements and further cost savings, as well as access more detailed insights and analytics into accounts payable operations. Furthermore, it enables company to automate invoicing and bill payment to ensure timely payments.
The use of automation also offers greater visibility and control into accounts payable operations. It provides centralized platform to access real-time data points and documents, enabling faster and more efficient auditing and reporting. This better transparency into operations ultimately results in much more effective accounts payable process.
Because of the tremendous improvements and cost savings that come with implementing accounts payable automation software, this technology has become increasingly popular. Chief Financial Officers, Controllers, and Accountants are recognizing the value of automating the accounts payable process and can look to AP automation software to improve operational performance and drive long-term success.
