Eliminating Busywork: The Trick to Reducing Accounts Payable Headaches

Feb 23, 2024 | Featured App

Using technology in business has changed how things are done, but some small businesses still do their financial tasks manually, like handling accounts payable. Manual tasks increase the risk of mistakes in data entry and invoice processing, leading to financial issues and strained vendor relationships. And it’s not just about mistakes; manual tasks take up too much time, around 49% of it. The manual approach also hinders a streamlined workflow, causing inefficiencies in the accounts payable department. 

Why Accounts Payable Automation is the Answer

Getting rid of manual tasks is essential for efficiency. The repetitive nature of manual accounts payable work takes time away from strategic activities. Modern technology can handle 50% of all accounting tasks. By automating routine processes, businesses not only reduce errors but also enable professionals to focus on more valuable tasks.  This transition from manual work isn’t just about individual tasks; it’s a strategic move to improve overall competitiveness. Saying yes to technology, especially through accounts payable (AP) automation, is now a necessity for businesses to not just survive but thrive.

Why Businesses Should Switch to AP Automation

Accelerated Approval Workflows

Automating the approval process for bills makes things go faster. Normally, when people have to physically pass around invoices for approval, it takes a long time and mistakes can happen. But with automation, the invoices are sent digitally through a set approval workflow, making sure things move quickly. This is especially helpful if team members are not in the office or are stuck somewhere. 

Automatic notifications and reminders also help to avoid delays, making sure approvals happen on time and payments aren’t overdue. This simpler way of doing things lets businesses see exactly where approvals are at, giving them better control over their money matters.

Time Savings on Reconciliation and Reporting

What if you and your team could save up to 10 hours every week? Using AP automation changes the way you do reconciliation and reporting tasks, making it much faster for finance professionals. A significant 56% of respondents in the accounting sector spend over 10 hours each week managing invoices and supplier payments. Automated systems offer the capability of reconciling data automatically through 2-way sync features on various modern payment platforms. This means less manual work to check accounts, which reduces errors and makes things more accurate. 

Plus, the automated reporting tools give instant insights into what you owe, giving a full picture of your financial info. This not only helps with making better decisions but also makes sure you follow the rules. Now, the time you used to spend on manual checking can be used for more important financial work.

Faster Payment Processing 

Automation speeds up how businesses handle payments, making financial transactions smoother. Electronic processing of invoices and automated approval workflows make sure payments happen quickly, which is good for keeping positive relationships with vendors. Automated systems can also smartly schedule payments based on the terms agreed with vendors, avoiding late fees and making it easier to manage cash flow. In a changing business world, the flexibility from AP automation is really important as it lets organizations adapt quickly and precisely to their financial needs.

Cost Savings through Streamlined Processes

Using AP automation saves a lot of money by making accounts payable tasks more straightforward. It can cut expenses by a whopping 81% and boost efficiency by 73%, benefiting everyone involved. Automation cuts down on the manual entering of data, which lowers the chances of making mistakes that could cause money issues. This efficiency not only means less money spent on labour but also makes processing invoices faster, so businesses can take advantage of discounts for early payments. Plus, having a better view of financial data lets businesses plan more strategically, contributing to overall cost savings.

Improved Communication and Stronger Vendor Relationships

Using AP automation helps businesses communicate better with their vendors, building stronger relationships. Automated systems give instant updates on the status of financial operations, which means less need for manual check-ins. This openness creates trust and teamwork, making vendor relationships better. Improved communication also makes it easier to solve disagreements quickly and in a friendly way.

Secured Financial Process

AP automation takes security seriously by using strong measures to protect financial processes. Access controls and encryption keep sensitive financial data safe from unauthorized access. Automated audit trails keep a detailed record of each transaction, making sure everyone is accountable and following the rules. Regular updates and maintenance make sure the automation system stays strong against new security threats. By using AP automation, businesses not only make their processes smoother but also make sure their financial operations are secure, building trust with everyone involved.

The Path Forward

Businesses can succeed by using technology and adopting accounts payable automation is essential in 2024. Research shows that the global market for AP automation is expected to grow from USD 2.6 billion in 2021 to USD 7.5 billion by 2030. That’s a big increase, about 12.5% every year. Accounts payable automation is a smart move for businesses to grow and prosper in today’s tech-driven world.