Every business inevitably needs to process invoices. Yet, over 90% of invoices are still processed manually despite the numerous benefits of automating the accounts payable (AP) process.
In this article, we’ll explore what accounts payable (AP) automation is and some of its key benefits.
What Is Accounts Payable (AP) Automation?
Accounts Payable Automation, or AP automation, involves leveraging AP automation software to handle the AP workflow. AP automation relieves AP staff members from manually performing tasks such as coding invoices and sending them for approval by digitizing the AP process.
Benefits of Automating the AP Process
Automating the AP process can save businesses significant time by eliminating time-consuming manual tasks in the AP workflow. Besides time savings, here are five more reasons why businesses should automate the AP process:
1. Increased Savings
Many vendors and suppliers offer early payment discounts because early payment helps them to maintain a healthy cash flow.
Unfortunately, businesses with a manual AP workflow often miss out on these discounts due to lengthy approvals. Worse still, some businesses incur penalties due to making late payments.
AP automation software can help businesses to avoid delayed approvals and late payments. With AP automation, AP teams can:
- Easily keep track of all invoices that managers haven’t approved
- Ensure payments are approved on time
- Benefit from discounts
Not only can settling invoices on time allow businesses to take advantage of discounts, but it can also help businesses to strengthen their relationships with vendors and suppliers and negotiate for better payment terms.
2. Enhanced Accuracy
Accountants aren’t infallible. They’re prone to making mistakes when entering data manually. In fact, according to a BlackLine report, human errors are a concern for 41% of people in all accounting mistakes.
AP automation can prevent human errors in the AP workflow by automatically populating data and verifying it against data in other systems, such as the enterprise resource planning (ERP) system.
3. Improved Collaboration
Manual AP workflows are usually decentralized, and team members work on tasks independently. On the other hand, AP automation allows teams to collaborate in real-time via a centralized dashboard.
With AP automation, team members can monitor each other’s progress and hold each other accountable — ensuring everyone completes tasks on time. Plus, because AP automation promotes collaboration and transparency, it can help to curb fraud.
4. Reduced Burnout
According to a Gallup study, employees cited heavy workloads and time pressure as some of the top reasons for burnout. AP staff members who need to manually process hundreds of invoices daily within tight deadlines are at high risk of burnout.
AP automation can relieve heavily burdened employees and prevent burnout. Plus, it can boost staff morale by allowing employees to work on more fulfilling tasks that drive business goals instead of monotonous tasks.
5. Seamless Integrations With Other Systems
Having to alternate from one application to another to key in data can be tedious. With AP automation, teams won’t need to worry about alternating between systems to enter data because many solutions integrate seamlessly with ERPs and other financial systems. For instance, WorldView’s AP software works seamlessly with Agility.
Eliminate Manual AP Processes Today
AP automation can streamline your AP workflow and offer your business all these benefits and much more. Schedule a demo to learn more about how Worldview’s AP automation solution can offer these benefits and help you improve your bottom line.
