Accounts payable automation is an incredible tool to include in your accounting and bookkeeping processes. The A/P (Accounts Payable) software apps are intuitive and easy to use. Implementation is seamless, and the cost is relatively low.
Your bank may have a bill pay system that connects easily to your bank account and accounting software, or you can use 3rd party apps that are specifically designed for QuickBooks.
10 Benefits of Automating Your A/P
1. Improves efficiency by reducing manual processing of documents
All invoices are routed from your vendors and sent directly to your assigned A/P email. If you still receive invoices via company email or through the mail, those invoices can be scanned and uploaded to the A/P management software.
2. Improves accuracy by reducing manual data entry
The A/P software uses OCR (optical character recognition) technology to “read” or translate the text from the digital documents and automatically upload the information into specific data fields. The software will begin to “learn” how vendor bills are processed and will automatically prefill the payment field options. Also, you can assign rules per vendor profile that will create greater accuracy and efficiency.
3. Integrates easily and sets up simply with your current accounting software like QuickBooks
Many banks have their own bill pay processing software that syncs easily with accounting software. Many third-party apps were created specifically for QuickBooks users. The setup is as easy as uploading vendor information from your accounting software. The initial sync is done instantly, and the A/P system continually syncs with your accounting software, eliminating the need for double entry.
4. Saves costs
The initial cost saving will be on staff resources. It reduces the need for manual data entry and processing payments with paper checks or contacting vendors with credit card approvals. By automating your A/P, you can choose to pay the vendors via check, ACH, and credit card with a push of a button. This will minimize the cost of purchasing checks, postage, printer toner, staplers and staples, folders, office storage space, and filing cabinets.
5. Reduces paperwork with an automatic digital filing system
Since all bills are funneled through the software, no matter how it is received, you will have access to the digital copy of the original invoice from the vendor. This will be stored automatically and all in one place. Support documents can also be stored along with the bill.
6. Creates customized roles and approval settings for staff
You will customize your roles and approval settings for your staff. You can set up the system to route bills to the right department or staff. Access levels are set and determined by the duties of reviewers, approvers, and signers to provide internal controls.
7. Reduces fraud and errors
The system will send notification(s) of possible errors such as duplicate bills. With the custom roles set up for staff, a digital audit trail is created each time the invoice is reviewed and approved. The bills are assigned to, reviewed, and approved by corresponding department staff to reduce entry errors. The separation of duties also supports the internal control processes within your accounting department.
8. Allows vendor payment options
Vendors have a choice of digital payment options of ACH and Credit Card. Paper checks can still be processed through the 3rd party app for vendors who still want to receive their payments via mail. These options are set in the vendor profile, and when payment for the bill is initiated, it is automatically processed per the vendor preferences.
9.Enables payments anytime from anywhere
Your bill pay can be accessed anytime and anywhere online with your computer and a Wi-Fi connection, or via the many mobile apps available today. Uploading, reviewing, approving, and payment is done quickly and easily. Your scheduled bill payments are made with a click of a button. This is especially useful in remote work environments.
10. Grows with your company
The A/P automated systems work well, no matter how small or large the company. They are designed to be scalable and adapt to the needs of your expanding business.
Automation of tasks via apps has helped to improve many areas of our personal lives. Integrating accounting apps and technologies will do the same for your business. Creating greater efficiencies with technology saves time and helps with productivity. Reducing paperwork and increasing accuracy through technology makes considering A/P automation a great choice.
Automating Your A/P