In simple words, accounts payable is the money you owe to your vendors. These vendors would have provided you with materials goods or maybe some services and now you own them money. Contrary to this, the automated workflow of account payables is the process through which you enter the debts into your work system and pay them.
The question is why should you automate this process? Does it actually add something valuable to the client’s firm? Why should you spend your money on automating your account payables.
Today we see the growing importance of Big Data in strategic planning in many business processes. Then we can also see that there is a shift toward next-generation technologies. So do you think a firm that does not automates its processes gets to survive? In 2020 a research performed by Ardent Partners found that almost 55 percent of businesses view their accounts payable department as “very” or “exceptionally” valuable. So, in my view, this department indeed has rich potential for improvement through automation.
So let’s look at why you should be automating this process!
The process of account payable’s automation creates data transparency. In fact, it is mobile-friendly and you can work from anywhere through secure internet access. You can create a shared environment where the client’s teams can collaborate and communicate efficiently. This way you can focus on your skills with clarity, innovation, and shared success. Thus automated workflow is very important.
Easily Retrievable Data
Having a big stack of paperwork, it is a big problem to store them. Even digitizing it takes a lot of time. Digging through the data is a big no-no. Hence having an automated workflow makes it so easy to retrieve older data. Not only this, but the accounts payable automation tool help show a lot of useful data too. An example of this is how much you are paying in total based on vendor or product type. In a nutshell, it is easier to see insights and much quicker to resolve any sort of payable issue.
Automation of your account payable seriously increases efficiency and improves operations. In fact, the physical storage that comes with paper invoices and purchase orders can reduce the environmental impact. This is something that most of the client’s customers are looking for lately. More so, clients can get early payment discounts as well as avoid late fees using the automated account payable feature. This does not stop here. Automated workflows help in making approvals much faster and stress-free.
As I told you previously manual workflow wastes money, time, and a lot of resources. Contrary to this, automated workers are extremely accurate. Subsequently, a lot of information can be processed at the same time. Human beings are not too good at doing this. Moving towards automation also means that you are removing human error and improving the speed of processing data. This also means that the client’s staff does not have to spend hours tracking down errors. Nor do they need to correct duplicate payments or investigate invoice fraud.
Like all different business processes, account payable was traditionally handled using pen, paper, and manual workflows. Since the introduction of the computers, the accounts spend so much time entering manual data into the computers. All this process is in the face very time-consuming as well as error-prone. But thanks to the automation of account payable workflows. A lot of time can be saved from entering invoices to the amount of debt getting paid, being reconciled with little to no human interaction. This in turn reduces a lot of paper costs and gives better data visibility for invoice and payment activity.
In a nutshell, automating your workflows is a very powerful way to introduce digital transformation. And because of the artificial intelligence and so much analytics to look at, you do not have to do your account payables manually. This improves the client’s business’ profitability and efficiency!