Accounts payable (AP) is a vital function for any business that needs to pay its suppliers and vendors on time and accurately. However, many companies still rely on manual methods such as paper invoices, spreadsheets, and email to manage their AP processes. These methods are prone to errors, delays, and inefficiencies that can negatively impact cash flow, compliance, and vendor relationships.
Fortunately, there is a better way to handle AP: AP automation software. This type of software automates the capture, coding, approval, and payment of invoices, reducing manual work and human errors. AP automation software also provides a centralized platform for collaboration, documentation, and workflows, giving users complete visibility and control over their AP processes.
By using AP automation software, companies can enjoy many benefits that can boost their productivity and profitability. Some of these benefits are:
Time savings: AP automation software can significantly reduce the time spent on data entry, invoice matching, routing, and approval. According to a report by G2, AP automation software can help users process invoices up to 5 times faster than manual methods.
Cost savings: AP automation software can also lower the costs associated with invoice processing, such as labor, paper, printing, storage, and postage. G2 estimates that AP automation software can save users up to 80% of the costs of manual invoice processing1.
Accuracy improvement: AP automation software can eliminate errors and discrepancies that can result from manual data entry or invoice matching. This can prevent overpayments, duplicate payments, late payments, or missed payments that can affect cash flow and compliance. AP automation software can also detect fraud and flag suspicious invoices for further review.
Compliance enhancement: AP automation software can help users comply with accounting standards and regulations by providing a single repository for all invoice-related documents and activities. Users can easily access and retrieve any invoice information for audits or reporting purposes. AP automation software can also manage vendor onboarding, information, and documentation to ensure compliance and strengthen vendor relationships2.
Insights generation: AP automation software can provide users with valuable insights into their invoice data and AP processes through built-in analytics and reporting tools. Users can monitor key metrics such as invoice volume, cycle time, payment status, employee productivity, and more. Users can also identify bottlenecks, trends, or opportunities for improvement and optimization.
In conclusion, AP automation software is a smart investment for companies that want to streamline their AP processes and improve their productivity. By automating manual tasks and providing transparency and visibility of invoice data, AP automation software can help users save time and money, increase accuracy and compliance, and gain insights into their AP performance.
In Cloudsis we help our clients integrating AP solutions with their Accounting Software. Contact us for more information at info@cloudsis.com