Friday, December 2, 2022

Digitization Of Processes In Accounts Payable

Before remote work and the digitalization of processes, manual processes have been the cause of problems such as errors, delays, lack of information, Digitization Of Processes In Accounts Payable accounts that do not add up, ant theft and even fraud, especially in the management of accounts payable. And, when it comes to lost or missing invoices, the situation can be even more complex because it interferes with fiscal verification, Digitization Of Processes In Accounts Payable payment of taxes and relationships with suppliers.

Also read: What are Deferred Payments?

Accounts Payable (AP) automation can reduce costs by 81% and improve department efficiency by 73%, and here’s how See website:

A company that acquires goods or services from its suppliers on credit, or with some system of payment in installments, must maintain a documentation of liabilities to have control of the debts and payments made to suppliers. Within this management, expenses for business trips, purchase orders, financial analysis reports, among other processes whose function is to keep the finances of the companies in good condition, can also be included.

In addition, AP can function as a single department, or integrate accounts payable and receivable in small and medium-sized companies, covering the entire financial area.

Processes such as receiving and reviewing invoices, updating payment records, processing and sending invoices, among others that must be well documented to avoid problems. Process automation solutions are the most effective response to optimize the area of ​​accounts payable, improving the financial health of the organization in the following ways:

Account Control Guarantee

By automating accounts payable, companies will be able to keep consistent records of their invoices to track them and take actions corresponding to each of them, so that all stages of the process can be met to have a strict control of the accounts. 

Better relationship with suppliers

By automating AP processes, it is possible to have greater visibility of the status of each supplier invoice in the system, so that they are managed with greater agility to cover the corresponding payments in a timely and constant manner, with which not only maintain long-term relationships with suppliers, but companies can access new credits, discounts or other related benefits that allow better management of the supply of goods or raw materials.

More digital work, less manual work, equals more efficiency

In addition to ensuring that only authorized people can access the information, automation considerably reduces manual work as these solutions often capture and extract data from invoices to integrate it into the system, so that it does not have to be entered or related. Manually each invoice or purchase order. In this way, invoice approval cycles are accelerated, along with payments to suppliers and with less chance of capture or revision errors.

Transparency in operations

The automation of accounts payable allows to have a visible environment of all operations, from liabilities, cash flows, income (if integrated with accounts receivable), reports, statistics, operating expenses and possible risks, so that managers can make more informed and accurate financial decisions.

In addition, by having the generation of reports by departments, it is possible to know the real state of the company, detect possible ant expenses, errors and situations that put finances at risk to solve them immediately.

Costs reduction

AP automation allows area personnel to perform supplier analysis, comparisons of previous months, anticipate their purchases and access offers or benefits for advance payments, so that they can reduce their costs and have higher profit margins.

Choosing the right automation solution for the needs of the company not only helps to improve processes, reduce costs and processing times, increase visibility, control and transparency related to invoices and payments to suppliers, but also provides a return on investment and savings that will be visible in the medium term, giving solidity to the companies.

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