Nowadays, the advancement of modern technology helps a company automate the accounts payable process. So, a company can quickly gather data and approve invoices through an automated process. Most importantly, it saves time, reduces errors, streamlines the accounts payable process, and helps employees focus on more value-added work.
How Does Automated Account Payable Process Work?
An account payable automation software follows customized instructions, including classification, matching, and verification of payments, to enable businesses to automate their payment process. It usually starts with paper invoices and is converted into a standard digital format. In this case, an optical character recognition feature significantly extracts information digitally from invoices.
Many companies use artificial intelligence and machine learning algorithms to read patterns and draw inferences from invoice data. Moreover, companies can use the practices and insights to route invoices based on keywords and supplier information. The automated account payable process can identify fraud activities and perform multi-level checks to verify invoices.
Benefits Of Automation In Accounts Payable Process:
- Using accounts payable automation software considerably reduces error and gives more accurate results than the manual process.
- It saves time and ensures faster payments to vendors, who might return the favor by offering discounts.
- Companies can keep all the digital records in a single place that is easily accessible during times of urgency.
- Greater visibility and control over the company’s cash flow are crucial to successfully running a business. So, the automation of the accounts payable cum vendor management system paves the way for better financial planning.
- It reduces employees’ boredom and helps them become more productive by improving efficiency.
- The accounts payable automation system reduces the risk of fraud activities and gives an overview of the organization’s regular spending activities.
How Do We Choose The Right Account Payable Solution?
1. Data Entry Automation:
Data Entry is the most time-consuming accounting payable task and is sometimes responsible for generating erroneous results. Therefore, automated data entry is beneficial for future company policies and strategies analysis.
2. Generate Digital Invoices:
Businesses can generate XML invoices through the automation process. These invoices are convenient to open and read. Moreover, suppliers can easily send these invoices through the supplier portals. Presently, there are various online platforms available to help businesses create professional and tax-compliant e-invoices.
3. Easy Invoice Processing:
In this case, an artificial intelligence assistant helps to set up automatic invoice payments with minimum intervention. Companies can also use robotic processing automation (RPA) depending on their budgets and requirements. RPA is one of the most comprehensive automated solutions that does not need any human intervention.
Finally, focusing on in-built customer care service is crucial when choosing accounts payable automation software. Furthermore, to resolve any dispute with the suppliers, companies can develop a mechanism for time-bound results to track the status of the invoices.