Accounts payable (AP) is an challenging process to deal due to its conventional paper-based approach which increases the error rate. So AP automation in an ERP can be seen as an relief.
Conditions are changing in today’s business world and with market disruptions, companies have started to recognize the benefits of extending the functionality of their ERP by integrating other solutions that focus on specific areas such as payroll, T&E, tax and accounts payable.
Accounting systems in ERPs are essential to optimize accounting and financial operations. It remains your core system of record and centralized source of information across all functions within the finance organization. With accounts payable automation, it can provide a significant cost savings for a company beyond the expected savings from eliminating manual tasks.
Here we discuss why ERP must have Accounts payable automation:
Minimize wasted time
AP Automation saves a great amount of time from a manual paper-based approach and does entire work in much less time. You can receive now invoices directly into your system to process them faster and reduce inquiries from suppliers by providing payment status as a self-service.
It simplifies the entire operations of account payable and reduces transactional costs and eliminates routine tasks by optimizing invoice processing for both indirect and direct procurement that also maximizes early payment discounts capture.
AP Automation provides a digital workflow to manage steps previously handled by an AP staff member. It makes possible for organisations to touchlessly process invoices without any human intervention. You can upload digitally the invoices and later it will be processed accordingly.
Increase payment speeds
With AP automation, you can speed up your payments as it allows you to automatically code and distribute invoices to the right person for approval based on your company’s chart of accounts, business rules and approval hierarchy that are pre-configured in the system.
With a traceable approval process that allows the invoice to be processed for payment with designated authorizers indicating approval and decreasing the chances of fraud to occur. It gives management and AP staff unprecedented visibility and reporting capabilities into the flow of invoices and transactions across the company.
Accounts payable automation if done right improves the productivity of the enterprise and helps to have more valuable supplier relationships, and supports company growth and business agility. So it is required to have an ERP with the AP automation.
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