Let’s face it – manual work is quite tedious to manage especially if you’re in an accounting firm, right. There is so much to manage like accounts payable, receivables, payroll, invoice entries, etc. but how you’re able to handle it is the main question here. Gone are the days when accountants could use pen and paper to make a rundown of everything. Thanks to technology or accounting software that has made everything easy to record digitally. You may or may not be using accounting tool in your business. But being in an accounting industry, you must know about ‘Accounts Payable Automation Software’ to leverage in your business and make accounting task much easier. Therefore, this article is a complete guide on accounts payable automation software. Make sure you read the complete article to know how it can be helpful for your business.
So let’s get started from the basics first.
What accounts payable automation software is?
In simple words, accounts payable automation software is a tool that helps accountants to eliminate manual process involved in accounts payable. In fact, the tool automates the work and eliminates the manual task of accountants. AP automation software allows you to submit and approve purchase orders and invoices virtually. Moreover, there are some automation tools that will read invoices and bring out information themselves. It basically eliminates the data entry work of your team.
Well, the goal of the automation software is to move faster, reduce error, and help the company scale easily. Additionally, it provides more visibility of your work and provides control over crucial financial data.
Features you need to look for in AP automation software
There are end numbers of features that AP automation tool offers. The most useful features that will help your firm include:
– Look for payment forecast
– User activities and invoice actions
– Automated invoice separation
– Custom user permission
– Searchable document storage and content management
– Reporting, recording, and data exporting
– Advanced financial integrations like corporate performance management
– Workflow engines
And so on…
Let’s move ahead and dig deeper into AP automation working process.
How exactly does AP automation work?
AP automation starts working by converting your suppliers’ invoices into a standard digital format which forces them via a digital workflow that builds up with paying suppliers. When the AP automation process starts, it uses optical character recognition (OCR) to extract information from invoices. However, there are some products that use machine learning to recognize patterns over time and enhance accuracy. You can also customize rules for your business like acceptable variances or approval hierarches. This ultimately eliminates the need for manual interventions for invoice payables or receivables.
After reading about the working process of AP software, it’s time to talk about the benefits of it that you will read in the next section below.
Some benefits of using AP automating software
If you implement well, accounts payable automation software will:
* Help you reduce manual work
As you know that AP payable software is best for managing your accounting tasks, it actually reduces the slow and repetitive work of an accountant. Whatever you need to check purchase order forms or enter data, everything is now possible instantly.
* Enhance your work productivity
How the productivity of the work increases? When you save time and invest that time in managing other aspects of your work then that increases the productivity of your work. If your team doesn’t know how account payable works then with the AP automation software they can learn and gain knowledge about it.
* Makes fewer errors
No doubt, humans tend to make more mistakes than tools or software, right. But the fact is, computer programs or tools work effectively without making any mistakes. That’s the reason people working in digital marketing sector or accounting sector make use of tools to get rid of errors.
* Provide better insight and transparency
Who doesn’t like transparency in work? We all like, right. As an accountant if you have greater visibility in accounts payable process then it provides you keen insights about your work. You can focus on problem areas and look for other opportunities for improvement. Moreover, you can also use the tool to measure and monitor the performance.
Since you have read the entire article, I believe you have gain better insight in AP automation software. The major task of AP is to manage your invoices, processing payments, and manage vendor/supplier relations. With AP automation, you can produce more accurate and reliable data, speeds up processing time, and lets you seize more early payments discounts by reducing manual work and human error. With AP software, you ultimately increase the efficiency of your work.