As your business grows, entering multiple invoices manually into your accounting system and sending paper documents through the approval and payment processes while ensuring 100 percent accuracy can become a time-consuming, nearly insurmountable task for your accounts payable team.
The results of using manual processes in your AP department increases the risk of late payments, additional costs, and fraud.
That’s why forward-thinking business owners are embracing automated AP technology to streamline their AP processes, which helps save time, build profits, and improve vendor relationships.
Understanding the Inefficiencies in AP Processes
Traditional accounts payable processes generally involve manual data entry and pushing paper invoices through the AP approval and payment processes. Running your AP department with these methods can lead to problems at different points throughout the invoice management process, such as:
Manual data entry
Human error through manually entering invoice information into your accounting system can lead to several problems for your accounting team and overall bottom line. For example, inaccurate or missing data can lead to delayed or incorrect payments, which can trigger late fees and strain business relationships.
Tracking and organizing invoices
Sending manual invoices through the office for verification and approval increases the risk of misdirected or lost invoices or delayed processing as they sit on someone’s desk. It’s incredibly challenging to track a paper invoice once it’s forwarded for approval, leading to delays if it can’t be located promptly.
Payment scheduling and processing
Remitting payment to a vendor is usually scheduled upon final invoice approval. However, there can be disruptions in the payment cycle with manual AP processes if there are questions or errors on the invoice that warrant investigation.
Auditing and compliance
Paper invoice processing offers little to ensure internal controls that help prevent fraud. Misfiled or lost invoices can also cause your accounts payable department frustration if an audit is required. Also, your staff must undertake a time-consuming investigation whenever there’s an invoice problem.
How AP Automation Addresses These Inefficiencies
AP automation technology helps solve these problems by streamlining the entire process, eliminating bottlenecks, and making significant system improvements, including:
Automated data entry
AP automation captures incoming invoice data in a digital format through document scanning or optical character recognition (OCR) technology. Automation eliminates the risk of manual data entry errors that can cause payment delays and late payment penalties.
Organized invoice management
Digital invoices are automatically forwarded to management for approval through the secure cloud-based AP system. Invoices can then be reviewed, edited, and approved in real-time, shaving hours (or even days or weeks) from the approval process.
Efficient payment scheduling
With improved invoice processing times, payments can be efficiently scheduled to avoid late payment fees. Faster payment processing can also allow you to take advantage of early-payment discounts that improve your cash flow.
Streamlined auditing and compliance
Invoice data is automatically uploaded to your ERP system, creating an instant and easily-tracked audit trail. Accounts payable automation software also features digital form validation that ensures correct data entry and customized compliance rules to track and correct common mistakes and instances of fraud.
Benefits of AP Automation for Small Businesses
Time and cost savings
Managing your invoices through an automated AP system saves time in data entry, approval, and payment scheduling. These savings in time help reduce your cost per invoice and avoid late payment fees. Labor costs are also lowered because your finance team can spend time on more meaningful tasks instead of data entry or paper invoice tracking, filing, and retrieval.
Improved vendor relationships
You maintain strong relationships with vendors by consistently paying your invoices on time through AP automation. You may also qualify for better payment terms. If they have questions about an invoice, your vendors will appreciate the time saved with instant digital invoice retrieval.
Increased accountability and transparency
AP automation solutions give your accounting team complete, real-time visibility into each invoice. Audit trails accurately track edits and approvals, so you’ll always know who’s touched the invoice in the event of an investigation.
Success with AP automation doesn’t have to be complicated. Partnering with the experts at Ash Conversions International (ACI) makes the entire transformation to automation simple and enjoyable, with minimal impact on your daily operations.
Partner with ACI to Increase Efficiencies with an Automated AP Solution
Your business success is directly tied to the efficiency of your AP system. Without AP automation, you’re hampering your company’s ability to achieve sustainable profitability.
Discover the benefits of AP automation with a tailored solution from Ash Conversions International. Our team of experts is ready to help you streamline your operations, save time, reduce costs, and strengthen your vendor relationships.
Click the button below to contact us today. Together, we’ll make your AP processing a powerful asset that moves your business forward.
