One of the key benefits of automated accounts payable processing is that it can increase productivity. Without an automated accounts payable process, 84 percent of employee time is spent on processing transactions.
Fremont, CA: Accounts payable departments continue to process their invoices manually. They are always moving purchase orders out and getting invoices in. Manual processing is likely to be error-prone and can slow down a company’s pace. AP processes require approvals and can be time-consuming. Businesses can overcome these problems by implementing accounts payable automation.
Let us look at some benefits of automating accounts payable process:
Increased Productivity
One of the key benefits of automated accounts payable processing is that it can increase productivity. Without an automated accounts payable process, 84 percent of employee time is spent on processing transactions. Only the rest 16 percent is left for value-added activities. An automated accounts payable process would not require human assistance. Thus, businesses can save employee time and help them focus on other important things. This will also speed up the process as well as employees would be able to be more productive.
Improving Accuracy and Reducing Errors
The accounts payable process involves manual calculations, data entry, and various types of communications from several departments, which give plenty of room for mistakes. Accounting errors can cost your business in various ways. In manual processing, human errors often result in duplicate payments and overpayment.
Imperfect invoices packed with errors and exceptions create frustrations for finance employees. Ineffective communication can create misunderstandings. In order to overcome these issues, businesses need to have reliable software in place that validates data entry and identifies exceptions throughout the way.
Speed UpCycle Times
Automated accounts payable processing can speed up cycle times. Slow cycle times can harm businesses. Various problems, such as unpredictable cash outlays and faulty invoices, can cause a backlog. Automated accounts payable processing can greatly accelerate invoice cycle times. Automation positively influences data capture and entry, invoice validation, and matching.
See also: Top Accounts Payable Solution Companies
