Understanding Automated Accounts Payable for Businesses
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As the world continues to be dramatically reshaped by technology, the demand for automation services in the business sector continues to rise, and Accounts Payable(AP) is no exception. However,? the biggest reason many businesses hesitate to automate AP is that they need to figure out where to start and how it will benefit them.
Today, we will walk you through various steps in the Accounts Payable process, how automated AP will benefit your business, and how it differs from manual APs. Let’s get started!
Accounts Payable: Meaning
Accounts Payable (AP) refers to the aggregated amount of your company’s short-term obligations to pay suppliers for products and services purchased. The payables are considered faulty if not paid on time and may also trigger a penalty.
Accounts Payable: Why Your Business Needs to Automate It
Ever wondered how easy it would be if you could get a consolidated view of all the invoices that your company needs to pay, the money your business owes, and get alerts when the payments are due. Well, to avail such benefits,? your business needs to automate the accounts payable right away.
The biggest AP challenge that businesses face is decentralized and manual processes. Manual processes include sorting invoices, entering them into ledgers, going through a lengthy approval process, and lacking visibility. You can solve all these issues by deploying an automated accounts payable solution that reduces errors, cuts invoice storage and routing costs, and increases visibility into payables liabilities.
Earlier, invoice processing was time-and-resource-intensive, however, with automation, invoice processing is centralized with documents being routed electronically.?
However, it is the need of the hour to avoid delayed, duplicate, lost, and erroneous payments by replacing the traditional ways of invoice processing with automation. AP automation will also help businesses manage their cash flow and monitor their finances effectively and efficiently.
Below are some key benefits of automated accounts payable for business:
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Did you Know?
Automation eliminates many time-consuming tasks associated with processing PO- and non-PO based invoices.
Manual & Automated Accounts Payable: What’s the Difference?
Manual accounts payable is the traditional method of handling bills and invoices. It is a way to manually enter each transaction into your spreadsheets or manual ledgers accounting software, and then manually write check payments to pay your suppliers.
On the other hand, automated accounts payable uses software to automate the entire procure-to-pay process. Which involves sourcing vendors and suppliers, negotiating prices, entering into a contract, issuing purchase orders, receiving invoices, checking against goods received, and issuing payments.
A software is used to match invoices with purchase orders, make payments and approve or reject invoices automatically. Hence, automated accounts payable(AP) makes the journey between vendor and supplier simple and convenient.
It allows businesses to easily track invoices, payments, approvals, etc. from a centralized system. This level of control is something that manual workflows can never offer.?????????????????????????
Accounts Payable Solution with EnKash
EnKash’s Accounts Payable Solution helps your businesses save time and money. It increases productivity by automating invoice processing and payments. The main aim is to minimize and eliminate the manual work required to process invoices. It provides real-time insights into the entire AP process and reduces the possibility of losing bills or fraudulent invoice payments.?
Moreover, EnKash's automated payment system gives you a higher level of visibility of your accounts payable.
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