The benefits of accounts payable automation

In every company, there are people who tend to be resistant to change because, “If it’s not broke, don’t fix it.” While processing accounts payable manually may not exactly be “broken,” it’s inefficient, slows AP team members down and comes with very real, potentially negative consequences. 

How will my business benefit from AP automation?

By automating existing accounts payable (AP) processes, your business will experience many benefits.

Save time

If a business adds up how much time is spent on AP processes, delays in workflow and approvals, the amount of time spent on the phone following-up and more, the result would likely be an overwhelming sense of surprise. Automating even a few AP processes simply saves time. Sending checks through the mail can lead to lost and late payments which drives payment inquiries from vendors. Researching lost payments, voiding or stopping payment on lost checks and sending new payments costs valuable time.

Save money

The investment in upgrading to an AP automation solution is often offset by the amount of money saved, both directly and indirectly. Postage and mailing costs are tangible and rising. Sluggish manual AP processes often result in late fees and automating AP processes can help eliminate those charges. Adding higher-level productivity to an AP workforce while eliminating repetitive manual tasks is also good for a company’s bottom line. 

Mitigate fraud risk

Automating AP processes helps reduce the risk of fraud, from controlled access to invoices to increased account security. When processes are automated, it decreases or even eliminates the number of people required to interact with an invoice or account, diminishing the chance that information can be stolen or tampered with. Many businesses are understandably wary about collecting and storing highly sensitive data such as bank information. This can lead to liability in the event of a data breach. Automating AP processes can help keep that data safe and secure. Payment automation can also help reduce fraud exposure. Every payment physically sent through the mail is a potential exposure to check fraud. Digitizing as many payments as possible can go a long way to helping reducing fraud.

Increase your data security

Most organizations still utilizing manual accounts payable processes have multiple people handling invoices from the start of the process through month’s end. From verifying invoices to signing checks, the more human interaction involved with an invoice, the higher the likelihood of errors and compromised data. AP automation solutions offer access and approval controls to help reduce the risk of data breaches, both intentional and inadvertent. Another risk to smaller and mid-market businesses is storing sensitive supplier information such as bank account numbers, leaving multiple teams to determine if the information is truly secure if stored locally.

Increase accuracy

Duplicate invoices, inaccuracies, and missing line items are all common human errors that occur during a manual accounts payable process. AP automation removes the need for manual review of many processes and helps to ensure information is consistent and compliant.

Easier audit trails

AP automation tools can help flag issues that can be addressed prior to an external audit and can assist in highlighting issues that require the attention of an internal audit. A transparent audit trail can point to errors, fraud and help a business remain compliant with state and federal regulations. Ensuring all transactions are valid, data is accurate, and records are complete is also a critical function of AP automation solutions.

Make month-end a breeze

Ask any AP professional and they’ll likely tell you that month-end is a busy, overwhelming, and often dreaded time. Reconciling inventory and accounts, producing and reviewing statements, closing everything out—even when everything goes as it should (which is rarely the case)—takes a great deal of time and can cause a lot of stress. Automating AP processes removes the excess time of many manual steps, helping to make month-end much simpler.

Ease the work burden on your AP team

Automating AP processes frees up AP professionals for higher-lever tasks and increased productivity. Chasing down paper invoices isn’t a very good use of anyone’s time, especially when the task can easily be automated. AP professionals can be relieved of the burden of low-level, repetitive tasks thus providing them with the opportunity to focus on more strategic, hands-on priorities.

Help eliminate paper files and storage

Eliminating paper checks is often a top reason cited for an organization upgrading to an AP automation solution. Vendors now expect digital payment solutions and offering the option to remove paper checks from the process is welcomed by the majority. Handling and storing physical documents takes additional time for something with little to no value-add. AP automation can enable a business to offer an array of payment options, particularly electronic payments. The more a business can rely on e-payments, the fewer inquiries the AP team needs to field about payments lost or stolen from the mail.