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Automation of Accounts Payable Process

Accounts Payable Process Automation is to provide automation technology to speed things up without hurting the work quality.


Automation of Accounts Payable Process
Published By - Kelsey Taylor

Accounts Payable (AP), also known as trade payable, refers to the liability in regards to the money owed by an entity to creditors.

Accounts Payable Process includes accounting activities like invoice data capture, coding invoices and, matching and approving invoices.

Accounts payable process automation is the technology to automate maximum possible AP manual processes while regulating financial data with optimal transparency.

AP Automation helps remove human-generated errors and cuts out redundant activities.

Top 5 Accounts Payable Process Automation Solutions

  • AvidXchange
  • Beanworks
  • DocuWare
  • Sage Intacct
  • Stampli

Importance of Automation in Accounts Payable

Businesses overcome many challenges by the automation of accounts payable processes from arrival to payment execution.

AP process automation covers processes such as general ledger coding, data validation, invoice matching, verification, and routing & approval processes.

Businesses use automation to increase their efficiency and reduce monotonous work in the AP process.

Invoice Arrival

At the time of invoice arrival, the AP clerk will only need to scan the invoice into an AP process automation software. The software then creates text documentation out of the scanned image.

Suppliers can send the invoice in any format via any channel (email invoice, fax). The organization’s AP process could become tedious in the face of a large number of incoming invoices.

This is when companies utilize automation. Start with eliminating any mediums other than electronic invoicing. This removes the need of manual labor for the same and potential mistakes from it.

AP Automation simplifies sorting and categorizing invoices.

Invoice Approval and Routing

AP Automation makes the payment routing and approval quicker and errors free.  The use of AP automation removes any uncertainties over its validity. It eliminates the need to perform several steps to ensure its accuracy.

Approval routing automation helps maximize efficiency and saves time. The use of workflow automation ascertains compliance and transparency within a firm.

Process Payment

With an increase in volume, traditional payment processes start to show a lot of limitations and errors. With an automated payment process, you can eliminate delays, mistakes, or duplicates.

Hand coding tends to increase processing errors and cause unexpected expenses over a business’ AP process.

No manual keying is required to capture Invoice header and line-item data and affirms accuracy.

Automation of Accounts Payable Process Benefits

Time Saver

AP Automation requires minimum human interaction to process an invoice.

Traditional methods of manual data entry consume a significant amount of time

Automation technology solves your problems, minimizes the cost and effort to process invoices.

AP Automation tools and services employ advanced character recognition technologies. That makes it easier and faster to scan the characters into an editable digital document accurately.

A simple keyword or phrase search significantly decreases the time wasted on a manual search of a particular document.

Also, Read: OCR vs. ICR: What Differentiates the two Character Recognition Software?

Active Collaboration and Real-Time Monitoring

Traditional AP processing creates poor team synergy. It lacks real-time data processing and visibility.

Automation fills the channel gap between the organization’s teams and teammates.

Automation software monitors the fair division of work and ensures the most efficient accounts payable process strategy.

Real-time reporting becomes a critical factor in ensuring the direction and speed of the workflow. It eliminates reprocessing or repeated steps in the ongoing AP operation.

Better Workflow and Increased Transparency

AP workflow automation manages and monitors your AP processes. The use of technology removes any repetitive or counterproductive steps.

Digitalization increases process visibility. And, with the increased transparency, the entire workflow can be streamlined efficiently.

All the tedious tasks in the complex AP process flow are made more efficient and simplified with automation.

Automation solutions make way for a refined and customized process with better integrations.

Reduces Errors and Risks

Increased workload makes the AP processing team overloaded with work. Thus making the invoice processing vulnerable.

The authorized admins have easy real-time access to the overall data flow. Any financial risks become easily traceable with automation technology in use.

The business process automation establishes accurate processing and streamlining. Proper insights and reporting secures the quality of work and reaches rapid throughput.

Cost and Labor Savings

All these benefits lead to lowered overall expenses. A good number of labor resources are freed up to do productive and creative work.

An employee’s skills can be put in better use, improving the organization’s workflow effectiveness.

Employees bring in more productivity when their talents are utilized for strategic planning.

The environmental footprint decreases with the decrease in the use of paper-based invoices.

The technology removes any possible manual task requirements and lowers the processing cost as well.

Conclusion

The business automation industry is highly integrated with modern technologies like cloud computing, machine learning, deep learning, and recognition software.

It not only decreases the manual labor, cost, and time and enables secured process customization to suit your company’s timeline.


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Kelsey manages Marketing and Operations at HiTechNectar since 2010. She holds a Master’s degree in Business Administration and Management. A tech fanatic and an author at HiTechNectar, Kelsey covers a wide array of topics including the latest IT trends, events and more. Cloud computing, marketing, data analytics and IoT are some of the subjects that she likes to write about.

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