Exploiting Software To Enhance Accounts Payable Process Efficiency
How Does Accounts Payable Process Work
As ever-growing sum of corporate functions are becoming automated, organizations are now investing heavily to overhaul their accounts payable (AP) processes from manual-intensive methods to more efficient methods, with the use of accounts payable automation software (APAS). For finance executives searching for an optimum solution for their company, it is prudent to assess all the potential advances this software has to offer.
Firstly, the gains achieved from the utilization of APAS are considerable; from improved clarity and accuracy in managing accounts leading to strong foundation of compliance to considerable savings on operational costs (to the tune of up to 80 percent). This caters to large part of CFO’s agenda in achieving objectives such as cost optimization and efficiency escalation.
Moving to APAS helps diminish the processing time associated with invoice processing, reducing the tender of payment to matter of seconds after an invoice is approved. This also markedly streamlines the otherwise tedious process of reconciling invoices, which can otherwise be laden with costly human processes that are sometimes prone to error.
The automated system can create an easily-monitored audit-trail of all of the entries, postings and approvals that are completed. It can even recognize past overpayments and duplicate invoices, prevent the process bottlenecks and increase organizational security by enforcing stringent levels of access rights for pertinent personnel.
Furthermore, companies that adhereto APAS are able to exploit inherently built checking capabilities and streamlined analytics which result in reduced operating costs, improved working capital and notable workflow efficiencies across departments. This also removes any friction that typically arises from manual data entry and analysis of suppliers, and eases the use of discount opportunities that voucher payments procured by sellers may otherwise offer.
Using AP automation is also great way to ensure prominent level of compliance that is in accordance with quickly changing Governmental regulations and accounting standards. It can provide an optimal-level of data security, process that cannot be attained through manual system.
All said, organizations that have adopted AP automation have seen volumes of data processed at remarkable speed with far fewer errors. With the notion of digitization impacting every corner of the contemporary enterprise, organizations need to be agile enough to adjust efficiently to this dynamic landscape. AP automation is one of the most effective tools currently available to achieve just that.
