Accounts payable is one of the major factors that affect the overall operations of the company. When you work towards improving the efficiency of the accounts payable process, it not only affects the finances of the company, but it helps your company in various other aspects. This includes better payment terms in terms of the days of credit as well as discounts for timely payments, improves your market reputation, helps you plan your working capital needs accordingly, among other factors.
However, accounts payable can be a painstaking process that can involve mountains of paperwork, checking, verifying, approval, follow-up, and payment activities. The process can get more complicated when you consider invoices in multiple formats and the need for special approvals. What you are looking at is a complicated and manual process that depends on trails of paperwork and reliance on the memories of your team. Which is why accounts payable automation is a good way to go.
With the possibility of up to 97% touchless processing from a cloud-based solution with mobility features, easy configuration, and seamless sync with your ERP, the automation of the accounts payable process is the right way to go.
The three main aspects that will benefit from accounts payable automation are the control, efficiency, and savings aspects. In this blog, we will be focusing on the control aspect.
What can the impact of AP automation be on the control aspects of the process?
The impact on the control of the AP automation process would include:
- Process: With accounts payable automation, you can have a better handle on the processes for accounts payable. You can define and set a clear process for invoices that are based on a purchase order and those which are not based on the purchase order. This way, you can have better control over the time spent and the approval process.
- Liabilities: Accounts payable by definition is a liability of your company. Control on the liabilities of your company is important to establish your credibility with your stakeholders, get better financing terms from financial institutions, and get good payment terms from your suppliers.
- Closing of accounts: if you are part of the financial management of your company, you know how important it is to close your accounts on time and how difficult it can be if you do not have a proper support system in place. Accounts payable automation allows you to control this aspect.
- Audits: When your paper trail, approvals, notations on exceptions, and record keeping is under control, then it naturally translates to an easier audit process. These are the exact aspects that AP automation can help you with.
Interested to know how we can help you gain control on the aspects mentioned above with our accounts payable automation solutions? Click here to schedule an appointment with our expert or download the fact sheet below.