The businesses that have not modernized their account payable functions face costly services that include manual data entry errors, lack of control, and fraud. They also witness the issues that involve disconnected communication efforts that are spent on tracking the invoice approvals.
One of the best ways to improve the Accounts Payable process is by taking all the invoices or bills into a centralized manner with the help of the accounts payable software. With the help of this tool, the bills can be automatically generated and entered into the central nervous system to have complete visibility of the invoices. In addition, modernizing the account payable functions also provides full control over the procure-to-pay by creating various digital audit trails that help track each step, communications, invoice changes, and the approvals associated with the invoice.
Nowadays, artificial intelligence is being used. Key information suggestions are provided like vendor information, invoice number, GL codes, and many more for manual data entry. With the help of the automated payable method, the potential duplicate payable invoices and the purchase order mismatches can be easily notified.
The AP automation can solve several other issues caused by the manual processes and increase the payable account efficiency in the workplace. Here are some ways in which AP automation helps in improving the account payable process-
- Helps In Invoice Verification
The main role played by the accounts payable is to verify the invoices. When the invoices get approved manually, the verifications need much more time, and the three-step matching is nearly impossible for the invoices without the POs. However, the automation can make the verification process much more straightforward and offer control to all types of invoices.
Another important benefit of using AP automation is the ability to relate with anyone involved with the purchase, like the shipping receivers, procurement managers, and purchase requesters.
- Helps In Centralizing The Invoice Communications
Communication always plays an important role in the Accounts Payable and approval of the invoices. Making an invoice can involve several people in the chain, like the purchase requesters, the receivers, contributors, approvers, and vendors. With the help of AP automation, you can easily track and log the communications that happen on the invoice, one of the primary account payable process improvements that the AP platform can solve.
The invoice acts as the centralized communications hub in various ways for answering the queries, field updates, approvals, and rejections. It makes the communication thread and information fast accessible and helps the approvers to approve the invoices soon. The long emails, unreturned phone calls, and voicemail messages are no longer needed in this case.
- Detecting Potential Frauds
Many large and small companies have spent lots of money by paying fake invoices. With the help of AP automation, companies can now detect these potential frauds. Apart from reducing the data entry, the Account Payable platform helps in identifying duplicate invoices.
These are some ways by which the account payable automation has helped businesses make the invoice handling and proper business management.