Globally most businesses are struggling with their accounting work due to a lack of knowledge about this niche and difficult access to expert resources. Accounts Payable is one of the biggest aspects that many businesses struggle with. And manual AP systems can kill the business cash flow and make your budgeting and forecasting suffer, along with your growth plans.
That is why reports by a US Bank study say that 82% of small businesses close down soon after opening because of cash flow issues. The biggest reason this happens is that they do not want to update their systems with automation.
That is why more and more executives are insisting on shifting to automated AP processes to help their back office accounting work. Business Insider news did market research, and they believe that companies cut costs by more than 81% with an automated process. So, what are the automation features that every business needs? Which are the features which can help you streamline and simplify your complex AP process? Read on to find out more about that in the article below. And understand what the industry experts are saying.
5 automation features for simplified AP process
As experienced back office accounting professionals who work with thousands of businesses, we have highlighted the top 5 automation features that your business needs. Check out the list below.
Accounts Payable Workflow Technology
In the traditional AP processes, invoices frequently end up on workstations and in mailboxes while they wait to be picked up and forwarded to their designated location. Most businesses struggle with bulk work. This is especially more because most offices do not hire dedicated expert accountants because their services are expensive. But more than 60% of companies feel that they have very little knowledge of accounting and that is the crux of the matter.
Workflow technology is crucial in Accounts Payable since the same queuing and scheduling issues might occur at every stage. When you have workflow technology this waiting and scheduling can be automated, and your staff can free up their valuable time to focus on other important matters of business.
Workflow technology is a system that efficiently and logically distributes the invoice to the appropriate recipient. Once you input the basic data into the system, the system itself will keep sending the invoices on your behalf. Even if you do not remember to initiate the invoice, your system will send you automated notifications to help meet deadlines.
Electronic data workflows simplify the AP processes, eliminate ambiguity, boost productivity, reduce waste, and provide you with more control over the method. Therefore, if you have already digitized your AP, using end-to-end workflow technology is the ideal approach to pick it up a notch.
Electronic/Digital Document Management System
A manual accounts payable system's main problem is physical records of purchase agreements or bills that get lost along the way. In AP, important documents frequently manage to disappear when they are most required.
All of these issues can be resolved by implementing a central filing system, which offers consolidated platforms for data and record recovery at the precise moment you require them. To minimize a cost burden, make sure your AP automation software has the appropriate document management system.
Intuitive Character Recognition Tools
The ability to use dashboards, workflow technology, and digital document solutions depends on how well the documents have been digitized. Consider using OCR technologies to scan the records if you haven't yet made the switch from manual processing.
An OCR program effectively recognizes the content from the scanned image or picture when supplied with handwritten or physical documents to transform them into PDF files. In this manner, the groundwork for digitization can be laid, saving hours of laborious manual labor in front of a computer. Imagine trying to back up and digitize thousands of pages of important documents. That can be a logistical nightmare. It is better to use OCR to do the work for you.
Accounts Payable Dashboards
The dashboards provide the most transparency, even though the workflow can be configured with an automated alert to guarantee that the correct invoice reaches the correct person.
Dashboards provide a high-level, clear picture of payment and invoice processing to provide easy access to the status. Unlike in the past, when employees had to regularly bounce back and forth to learn that an invoice was stalled in processing, AP experts, managers, and accountants now have the necessary data at their disposal. To provide frictionless reporting and effective tracking to prevent obstacles, it is essential to have a strong dashboard in place.
Small Business data report says that more than 50% of small businesses across the world are open to financial fraud due to their faulty AP systems. To avoid such severe financial horrors, make sure your system has a simple yet efficient dashboard.
Payment Optimization
For some firms that do not provide a variety of payment methods or do not use automation, transactions are a pain point for them. Payment optimization tools that analyze and deliver relevant insights for optimized payments and savings can benefit greatly from the extensive payment history of a business. Companies can even get paid for fulfilling their obligations and utilizing virtual credit systems with the proper payment optimization.
Businesses can also take advantage of recurring payments with their automated AP system. The same payment to the same vendor or employee that goes out every month can be completely automated and save you a lot of time.
Tech Implementation done the Easy Way
The secret to having a strong financial system is automating your accounting process, and AP is one of the important components of this system overall. We can help if you feel intimidated by the task of automating your accounting procedures after using manual processes for so long.
The Assetsoft team is well-versed in offering clients outsourced accounting services and we have worked with an endless number of clients. We can assist in automating your accounting process, we also offer assistance with the newest technology selection and software integration. Our expert accountants can also use a mix of the right tech and expert human resources to give you the best accounting and bookkeeping results.
Get in touch with our team to know more! Book a one-hour free consultation call to get talk to our team.