5 Ways of Automation Improves Accounts Payable Processes


Posted February 26, 2022 by Alina079

AP Automation can solve several of these bottlenecks caused by manual processes and increase Accounts Payable efficiency.

 
1. Expedites Invoice Verification

The main role of Accounts Payable is to verify invoices. Even if three-way matching is typically associated with invoices backed by purchase orders, a similar process should be used for processing all vendor bills. When invoices are approved manually, verifications become time intensive and three-way matching can be nearly impossible for invoices without POs. However, automation can make the verification process straightforward while providing the necessary controls for all types of invoices.

One of the key capabilities for invoice verifications is the integration between the AP Automation system and financial system, such as Oracle NetSuite, Sage Intacct, SAP, or Intuit QuickBooks. When purchase orders are used, integrations are particularly useful since invoice matching against open POs can be done automatically. If invoices are received for closed POs or when invoice information does not match what is on a PO, the discrepancies can be quickly identified and handled appropriately.

2. Archives Invoices Electronically

Companies using manual, paper-based Accounts Payable processes need to store physical files in binders, file cabinets, and/or offsite storage facilities. Locating past invoice files can be daunting and take as much time to find as it does to manually chase down approvals.

Businesses can make accounts payable process improvements by going digital and electronically archiving their invoices through an AP Automation platform. Files can be quickly searched and available for immediate retrieval. Digital archives provide easy access to invoice approvals for auditors and help businesses comply with compliance or regulatory requirements.

3. Centralizes Invoice Communications

Communications play a key role in Accounts Payable and invoice approvals. An invoice can involve multiple people – including purchase requesters, approvers, managers, receivers, contributors, and vendors. The ability to track and log communications that occur on an invoice is another key accounts payable process improvement that your AP Automation platform should solve.

The invoice should act as the centralized communications hub in which questions, field updates, comments, rejections, and approvals are directly available. This makes all communication threads and information related to the invoice quickly accessible to make it easier for approvers to quickly approve the invoice. Long emails, voicemail messages, unreturned phone calls, and face-to-face meetings are no longer needed.

4. Identifies Bottlenecks
When invoices get stuck in a queue waiting for feedback or approval, a company runs the risk of late payments, damaged supplier relationships, and missed opportunities to manage cash flow. AP Automation platforms that provide invoice management dashboards and reports can help identify potential bottlenecks – such as finding individuals that are taking longer than expected to approve invoices – can help companies improve the process. Additionally, reminders and notifications of open and late tasks can help bring accountability and motivation for prompt responses and actions.

5. Detects Potential Fraud

Unfortunately, stories of companies – large and small – that have lost money by paying phony or fake invoices are quite prevalent. Companies that are using manual processes are most prone to these schemes. It is important for an AP platform to set up and adapt to the businesses workflows based on its multiple permissions and roles throughout its departments.

In addition to reducing manual data entry, AP Automation platforms can help identify duplicate invoices based on invoice number, invoice date, vendor name, line items, and/or amount. The ability to easily view past invoices from a specific vendor can help flag invoices that may require further investigation. Enforcing three-way invoice matching and verification is another tool for detecting fraudulent invoices.

Source : https://ezcloud.co/ap-automation/
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Issued By Ez Cloud
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Categories Computers , Internet , Services
Tags automation , it , payable , services , technology
Last Updated February 26, 2022