It is not unusual to have business enterprises keep paper records of their invoices when transacting with suppliers. In fact, before the advent of digital technology, most businesses stored invoices in their archives despite the difficulty it posed to keeping track, managing, and forecasting the business’ cash flow. The account payable team had to invest a lot of their time and efforts in staying on top of their game because they used manual processes rather than digital databases.
Consequently, business enterprises were exposed to the risk of delayed payments, missed discounts, and possible strain on their relationship with suppliers arising from the use of manual, error-prone, and inefficient processes. Nonetheless, in the age of technology, business enterprises must automate their account payable processes to eliminate errors and duplications. This way, they will also be empowering their account payable team with the right tools in compliance with the regulatory expectations of a technology-driven world.
Top 3 benefits of automation for business account payable processes
Keep reading for the top three benefits of an automated account payable process.
Invoices are processed quickly
It is indisputable that time is of the essence in the account payable department because the settlement of debt is time-bound. Without automation, an invoice could sit on an employee’s desk for days or weeks, waiting for review or approval. This results in late payments that not only incur extra costs to the company but also cause a strain on the company’s relationship with its suppliers. The use of an automated account payable process gets an invoice approved in seconds once logged into the system and increases suppliers’ confidence in the business operations and production.
Minimises business fraud and human error
Business owners leverage the evolution in artificial intelligence technology to detect risks and protect their operations. This extends to the automation of account payable in a manner that prevents and roots out fraud attempts before irreparable damage is done to the business. When manual processes are adopted, cash leakages are often buried under the carpet but with an automated process, business owners can easily track the cash flow and resolve possible queries. In addition, it builds in Segregation of Duties controls that prevent employees from either concealing or perpetrating fraud while discharging their duties.
Minimises the use of complex paper records
The accounts payable automation reduces the complexity associated with maintaining and checking paper records. It makes accounts payable more convenient and less time-consuming because the system detects duplicates, rejects bad invoices, and minimises business frustration arising from error-filled invoices. Further, when account payable is automated, all necessary parties are granted digital access to files; and being in control, can rectify inconsistencies easily.
Conclusion
Although some business owners prefer physical copies of their records, going digital guarantees the safety and security of not just the records but the business cash flow. Physical copies can still be kept in place as a backup but shouldn’t be the only option. With automation, it becomes easier to manage finances, track leakages, and improve accuracy. With proper insight, contact can be made in cases of delay creating more time to engage in meaningful tasks.