Most small and medium enterprises are still struggling to get their accounts payable right because they are stuck with paper-based manual process. Despite the fact that automation solutions are significant in saving time and improving a business’s bottom line, the rate of adoption is fairly low.
Unlimited number of businesses do not have any plans to automate their account payables. On the other hand, enterprises that have adopted AP automation have challenges when making and reconciling payments especially where manual touchpoints are involved. Read on to find out why AP automation is best for your business.
5 Reasons to Adopt AP Automation
The adoption of technology in business has revolutionized how businesses operate. Specifically, automating your accounts payable comes with numerous benefits. If you are not sure whether to embrace this automation, here are 5 reasons why your business needs AP automation.
1. Reduces Cost
The administration of manual accounts payable is costly and tiresome. Ideally, the more the paperwork, the higher the cost. Your business is likely to incur about $12.90 for every supply invoice handled manually. With AP automation, you save up to 29% of this cost depending on your company structure and business sector.
2. Increases Control
You have heard cases of “forgotten” or “disappeared” invoices. Such cases are common in a manual accounts payable system. With AP Automation, you get complete control over all the invoices, ensuring that your invoices are paid on time. The automation allows you to monitor the status of each of your invoices. You can as well link up with your suppliers for e-invoices. Also, you can match your orders with your suppliers automatically for ease of making orders and payments.
3. Reduces the Processing Time
Do your suppliers have to wait for the accountant to go through all the invoices manually before committing to pay? This doesn’t have to be the case anymore especially in this digital era and more so, if your company is growing. You need a solution that allows you the comfort to review, authorize, and pay invoices remotely. AP Automation gives you this luxury – you can access your invoices any time, saving you travel costs and time.
4. Ease of Access and Allows Real-time Monitoring
Chief finance officers and accountants need to be aware how each cent in the company is spent. Such kind of tracking is important in any business – it helps you avoid fines for late payment or even damaged reputation among suppliers. However, with paper-based accounts payable process, it is difficult to achieve this. Paper can get lost and people can lose track of the status of invoices.
Once you automate your accounts, you gain ease access to your invoices, monitor the workflow process, and identify any delayed invoices. Additionally, automating your accounts payable eases the data sharing process across teams.
5. Accurate and Streamlined Processing
AP automation can process up to 80% of invoices from capture to payment. It is a great way to reduce human errors in payment processing. Additionally, with such automation, you avoid duplicate payments and overpayments. Additionally, making reports and budgets or even carrying out payment audits is easy, accurate, and efficient.
AP automation is a must-have if you want to lower the cost of your payment processing, improve efficiency, and increase control of the payment cycle. Get in touch with www.getyooz.com for a purchase to pay automation that can help you reduce your cost by 80%.