The world has changed. Of course, it’s been changing for a long time now, but the Covid-19 pandemic sped the process up. All of a sudden, millions of people around the world started working from home. This led to businesses having to figure out ways to work effectively and efficiently while also no longer sharing the same workspace.
Using communication tools was a big part of making the shift, but automation tools have been just as important. Not being at the office means that certain tasks are more difficult to do, and some things could get missed entirely. Consider your accounts payable. If your work is processing them manually, you would have to receive the invoice, get approval from a signing authority for the payment, put together a cheque or payment method, and either mail or process the payment electronically.
Then you would need to record that in your ERP. There are many places where that system can go wrong at the best of times, and it gets even trickier when everyone is working remotely. Here are some of the main reasons why you need AP automation technology.
Every business should be looking at ways to cut costs. You can do that by automating your AP with a service like GetYooz. For example, with a digital storage system from such a service, you can save up to 90% on your materials cost. Then, you will also save on staff time spent receiving, confirming, and paying for an invoice. Some estimates show that it can cost around $10 to process an invoice once everything is said and done. By automating it, you can cut that down to about $2, and free up staff time for other things.
Automated AP will also help you keep track of your cash flow so that you are not accidentally overspending on one thing at the expense of another. On top of that, it will help you to beat early payment deadlines so you can take advantage of discounts and keep your costs down.
Less Human Error
One of the biggest issues with processing invoices and other AP tasks manually is human error. It can often be tedious and repetitive, which makes for a fertile environment for mistakes. By automating some of your processes, you don’t need to worry about the human factor. Invoice processing services can be integrated with your CRM and accounting software.
So whenever you are invoiced for something, it can go through your automated service, and payment will be processed automatically. Nobody on your staff has to lift a finger, and all of the data is tracked for you. It removes the middle many and makes your data entry more accurate as a result.
Let’s face it, manual tasks can be a bottleneck. If you are entering your accounts payable information into your accounting software, it can take a lot of time. It’s always better to be as fast as possible when dealing with accounting processes. That way your information is always up to date and you have an accurate picture of your financial situation at any time.
Processing invoices manually is inefficient and will lead to delays. By automating your system, you can get payments out faster and the data into your ERP right away. Not only that, but the faster you are, the more likely you will be able to take advantage of early payment discounts if they are available. Conversely, you will also be able to avoid late payment penalties.
Let’s face it. Every business likes to get paid. Not only that, but they all like to be paid on time. When you are processing your accounts payable manually, there are many reasons why you might be late with payments. There could be errors, a cheque might get lost in the mail, or you could misplace an invoice.
By automating your process, you will make sure to provide payment to your vendors and business partners in a timely manner. Too many mistakes could lead to a fracture in your relationship. By keeping things clean and automated, you will have no such issues, and enjoy a mutually beneficial relationship with all of your vendors.
Better Financial Oversight
With AP automation you can keep better track of what is going on with your finances. It provides an automatic data population that will be accurate and in real-time. Your analytics will always be up-to-date. Advanced reporting options provide you to pull up any information you need about your accounts payable with the click of a keyboard. That includes outstanding payments, possible late payments, duplicates, or any other issues.
Automation can be a scary word for some people, but it’s become a necessity for many businesses. It might seem like taking the time to process things manually provides better oversight and accuracy, but that just isn’t true. Besides, working remotely makes processing accounts payable even more difficult than ever before. Consider AP automation technology to upgrade your business so you can work more effectively and more efficiently.