5 benefits of accounts payable automation.
The technology to automate accounts payable exists — so why aren’t more companies using it? A PYMNTS study found that a surprising 59% of AP teams haven’t automated their accounts payable processes. That’s unfortunate because accounts payable automation can save money, reduce workloads, ease stress, improve compliance, and much more. If you’re on the fence about automating AP, or if you’re trying to convince management that it’s the right move, here are five compelling benefits to consider.
1. Streamlined payments.
Never pay a late-payment penalty again. With accounts payable automation, finance teams can automate time-consuming tasks like invoice entry and approval cycles, which reduces the likelihood of having to pay late invoices and their associated fees. Additionally, automation can reduce payment processing costs and allow you to schedule payments to make sure they arrive on time.
2. Greater accuracy and transparency.
Reduce the risk of data entry errors. Accounts payable automation eliminates the need to manually enter data and avoids human error. Optical character recognition (OCR) extracts information from invoices and receipts. Advanced OCR can “learn” the context of data and place it in the correct field, getting smarter with every transaction.
3. Easier to ensure compliance.
Accounts payable automation gives you a competitive advantage in another important way: it helps you meet compliance standards while saving time and reducing errors. You get an automatic audit trail. Your financial reports contain accurate information since everything’s automated, and fewer errors means less wasted time when it comes to audits.
4. Reduced staff time and workload.
Say goodbye to long monthly closes and time-consuming expense reports. Accounts payable automation can reduce staff time spent on manual tasks, chasing approvals, and vendor inquiries. With a self-service portal for employees to report expenses, managers to approve invoices, and vendors to submit invoices themselves, the additional work required of your staff is reduced. When you remove these manual tasks from your employees’ plates, they are able to focus their efforts on more value-added tasks that support greater innovation within the business.
5. AP anytime, anywhere.
The ability to manage all spend from a single cloud-based, automated platform means that the entire lifecycle of a transaction can be managed any time, anywhere. For example, approval for spend can be automatically routed to the correct approvers, and requests can be approved on the go through mobile, email, or Slack.
This ease of access helps keep teams moving and avoids any ambiguity regarding expense compliance. Another advantage is that reports can be generated in real time by all stakeholders without having to pull multiple records together or take finance team members away from other work.
Despite the many benefits of automated AP, some finance departments continue to use less efficient processes because they fear a difficult implementation and just don’t have time to learn something new. However, making the transition is often easier than expected with the right platform.
Accounts payable automation helps you reduce overhead while gaining efficiency, speed, and accuracy in your transactions. Talk to us to learn how Airbase’s spend management platform incorporates accounts payable automation for corporate cards, bill payments, and reimbursements across all payment types.
Airbase offers a one platform solution to manage all non-payroll spend. It provides oversight and control over spending with real-time reporting and automatic syncing directly to your general ledger. Control all payments – physical cards, virtual cards, ACH, and checks – from one place. Close faster. Empower employees. Control spend.
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