If you want to flourish your business, then adopting advanced technology is the key. Digitizing your official matters makes you more structured and saves your time. One such method is the automation of your Accounts Payable.
Accounts payable automation software company, Libeo found that finance and accounting departments can save around 1 whole working day a week using their B2B payment solution, reducing all of the manual processes to tackle supplier invoice payments, and prevent missing any payment deadlines.
The accounts payable automation solutions ensure that human error is eliminated as your invoices are generated by computers which use artificial intelligence. You can also monitor and control your accounts easily as your office gets free from most of the paperwork. Moreover, you may develop keen insight into your accounts as digitizing the accounts offers you enhanced visibility into your payment processes.
In addition, you will be free from entering the same data into many finance systems as AP automation provides built-in integration with all finance systems.
Building Blocks of AP Automation Solution
The AP automation software consists of 4 basic components. You should have a proper understanding of these elements before buying these softwares because it helps find software which is more compatible with your ERP.
1. Optical Character Recognition
OCR is the fundamental component in digitizing your invoices. It translates your invoice documents into digital form automatically. The automation phase of your office has begun if you have OCR. Still, you have to input other details manually i.e. coding, routing or approvals to generate digital invoices at a faster pace. Most of the companies rely on OCR only, but if you want more efficiency then you need to include other AP software components as well.
2. Systematic Workflow of AP
Generating invoice involves a series of steps which needs to be followed manually. These steps include code, route and approval before invoices are sent. The AP automated software ensures these steps are followed systematically by uniting these steps and creating a proper framework. Still, you need manual aid for approvals of invoices but the automated workflow will save you from complex auditing trails or late payment penalties.
3. Automated Purchase Order Matching
You have to do PO matching with your invoices to generate accurate invoices and avoid any frauds. This process is hectic if done manually. The AP softwares do this matching automatically by extracting the invoice data and then comparing it with PO data which is already synced in your finance system. If there is any mismatch, you will receive a disagreement notification from the software.
4. Assimilation with ERP
The most important element of AP software is it should integrate with your enterprise resource planning data. If AP software integrates with your core ERP functionalities, you will be able to accelerate the automation of every invoice generating step.
Moreover, you can also look for notifications, user-friendliness, information security and speed execution of the AP software.
Tips To Remember While Getting Accounts Payable Automation Solution
Well, selecting a particular AP automation system can be tiresome as the market is flooded with miraculous automation systems. This system accelerates your work and helps manage your account payable efficiently. To help you in choosing the most appropriate AP automation solution, we present you with some useful tips.
1. Know Your Goals
Before choosing a particular software, you need to know your office requirements. What your business really needs and then plan accordingly. There are many automation software that offer various features at different price ranges. Some are good at getting the most accurate and error-free results, while others can give you the option to generate invoices at the lowest rate of upto 10 dollars monthly subscriptions. If you have clear insights about your requirements, you can look for that particular feature in your AP software.
2. Create A Plot Of Your Current Invoice Process
If you know from the very first step properly how your invoices are generated, how they are coded, and from where they get approved, you can create a map of your payment process. When there is a clear map in front of you, you can easily point out the areas that require digital software’s assistance to make your whole process work smoothly.
3. Check ERP Synchronization
While looking for the perfect AP automation solution, check the compatibility of a particular AP automation software with your Enterprise Resource Planning. If a specific software is not compatible with your ERP then you won’t be able to transfer all of your invoice data to the system and generate automated invoices. Therefore, ERP compatibility is necessary.
4. Look For Return On Investment
The automated AP software calculates all of the money which your company has owed while making investments. So, there should be a feature that represents the estimated Return on investment that you can get. You can also ask the system authorities to show you how to calculate the ROI.
5. Look for Centralized Data Management
A premium AP automation software will enable you to access all of the functionality of the software. This accessibility will then allow you to make tailor need changes in your AP system. Due to this customization, you will stay up to date about your invoice processing and have consolidated information management in your AP software.
Other Top Features A Functional AP Automation Software Can Posses
There are also some special features that only a good and functional AP automation software can exhibit. Some of them are discussed below.
- A perfect AP automation software can manage multiple invoice formats with a drag and drop option. So, you won’t face the difficulty of handling invoices that are received in their own unique formats.
- An AP automation software should be errorless. There is no space for any minor mistake as the whole system will be automated, so a minor mistake can create big differences.
- The AP automation software should also match your purchase orders with invoices. For this, effective automation software provides the ability to acknowledge both PO and non-PO invoices.
- The ideal AP integration software also helps you to manage your supplier portal. Your suppliers will remain up to date and can upload new invoices easily.
- Lastly, this software also keeps your invoice information secure through passwords.
Conclusively, exemplary automation software is flexible to grow with your business and provides you with efficient management of your invoices. So, you should be mindful while getting one.
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