Businesses are always looking for ways to reduce costs, increase efficiency in operations, and improve their bottom line. One process where effectiveness is crucial is financials, especially Accounts Payables, and Receivables. We’ll focus on Accounts Payable.
Managing accounts payable can be a cumbersome and time-consuming task, especially for companies that have a high volume of invoices monthly.
With automation technology, businesses have started to simplify their accounts payable process and improve efficiency. In this article, we’ll explore what accounts payable is, what automated accounts payable is, and the benefits of implementing automated accounts payable in your business.
What is Accounts Payable?
Accounts payable (AP) is an accounting term used to describe the money that a business owes to its suppliers for goods or services purchased on credit. When a business receives an invoice from a supplier, it must record the amount owed and ensure that it pays the supplier within the agreed-upon timeline. This process involves several steps, including receiving and reviewing invoices, obtaining approval for payment, issuing payments, and reconciling accounts.
What is Automated Accounts Payable?
Automated accounts payable (AAP) is a process that uses software and other technologies to automate the accounts payable process. Instead of manually processing invoices, AAP systems use special technology to generate digital invoices or capture invoice data, verify it, and route it through the approval flow. Once approved, the system can issue payments automatically or send the data to an accounting package for payment.
The Benefits of Automated Accounts Payable
There are many benefits to implementing an automated accounts payable (AAP) system, including:
Increased Efficiency: It can process invoices much faster than manual systems, reducing the time and effort required to manage accounts payable.
Improved Accuracy: Automated accounts payable systems use can accurately capture data from invoices, reducing the risk of errors.
Enhanced Visibility: AAP systems provide real-time visibility into the accounts payable process, enabling businesses to track the status of invoices and payments.
Reduced Costs: Thanks to AAP, businesses can save on costs associated with manual invoice processing, such as labor and paper costs.
Improved Compliance: AAP systems can help businesses comply with regulatory requirements by ensuring that invoices are processed and paid in a timely manner.
Getting started with Automated Accounts Payable
Implementing an automated accounts payable system requires planning. Here are some steps to consider:
Evaluate Your Current Process: Start by evaluating your current accounts payable process to identify areas that can be automated. This may involve analyzing your current workflows, identifying pain points, and assessing your current technology stack.
Choose the Right Technology: Once you’ve identified areas that can be automated, you’ll need to select the right technology to support your automated accounts payable system.
Get Team Members on Board: It’s important to ensure that your team is aligned on the new system and understands how it works. This may involve providing onboarding sessions and offering ongoing support.
Test Your System: Before rolling out your new system, it’s important to test it to ensure that it works for your business case. This may involve testing the system in a sandbox environment.
In closing:
Automation is not just about getting your bills paid automatically. Automation also refers to automating tasks that are repetitive and time-consuming. This includes billing, invoicing, and collecting payments from customers.
Automated Accounts Payable by Duplo
Duplo Automated Accounts Payable offers a fast, easy & error-free Payables tool.
This new technology combines the accuracy of an Accounting Package plus the speed and efficiency of Instant Payments.
You can automate your entire accounts payable process; from workflows and invoices to payments and reconciliation!
If you’re considering implementing an automated accounts payable system, Duplo is rolling out a specialised Automation tool.
Join the waitlist here and we will alert you once we go live.
