Fascinating Account Payable Workflow Tactics That Can Help Your Business Grow

Fascinating Account Payable Workflow Tactics That Can Help Your Business Grow

The term Account payable or AP refers to money that management owes its suppliers. In Bookkeeping Accounts payable appears as a liability account. Account payable works only with the short term, not the long term.

Account payable is those who purchase the product and settles the amount with a short period. For instance, let us take steel suppliers they provide the material first for the people who order and then they give a limited period for the payments to be closed by the buyers.

There are individual departments that are in charge of paying the invoices. The size of the peoples will differ according to the business. Let us dive into the process happening in account payable workflow.

Account Payable Process

In the account payable process there are many challenges which we need to Overcome. Starting everything was done manually by the paper format.

First, they print the invoices and they keep the papers to the manager for the approval to move to the next process. After they get approval, they type all the data to be processed. And after finishing all the sections at last they will be filing the paper and keep it safe in the paper format. That was very hard to maintain.

And here comes with the next update on the internet times. They started eliminating the approval papers. Everything was changed in the electronic format through the E-mail. By just seeing the mail they approve. And the data has entered into the devices which is more secure and reduces the risk. After the data entry process, it has been stored.

These are the process which has been followed and following in this globe.

Account Payable Workflow Automation

Whether it is a small size organization or large size organization automation works very well. This makes our work simpler and can manage it very easily. In automation, we have created a code that is to be done without the help of manual entries.

In the accounts payable function, it is costly and takes a huge process, and hard to manage. The common challenges we face are manual entry and 1000s of invoices processed. It causes an error because the information comes from a different format, different organization, and it is very difficult to retrieve the documents.

It automates the process and there are no manual workings in this process. Here it captures the invoices automatically we don't need to keep the hard copy. Also, if the set of rules is correct it automates the approval so that we don't want to waste the time until we get approval and move to the next process.

After the approval work, it directly enters into the ERP system to create the data, and last it goes to the payment process and that is also automated.

These are the major workflow in the account payable workflow automation. There are various benefits which are very useful for our business. Let us see in the upcoming notes.

Benefits of Account Payable Workflow Automation

Account payable workflow automation satisfies the client and runs the business smoothly.

In this industry, many businesses spend $5 to $40 for the invoices. On the other side by the automation process, it spends around $5 only. Many organizations are missing to save roughly $30,000 to $40,000 per 10,000 invoices. There are some common benefits to be listed. They are as follows.

1. Preventing from Trickery

2. Visibility

3. Customer fulfillment

4. Quality improvement

1. Preventing from Trickery

*Strengthens internal controls and prevents fraud. And reduces the cost.

*If it is a manual process, they may misuse the sheets for any reason. But if it is automation then no one can try to cheat in this process.

*They make the process clarification and modulate the controls and then automates the stage. So, it is very safe.

2. Visibility

* In manual processing there will be a lack of visibility. Everything will be in paper format so after months the visibility of paper may change.

*But in Automation, everything has been centralized and the process happens continuously. It stores in the ERP for the database and runs the process inflow without any interruption.

3. Customer fulfillment

*In the manual process the customer used to get details from the individuals through the file format.

*But in the automated process, the customer can have an individual account and can access by the web browser through mobiles, tablets, Laptops.

*So, the customer can get the details in the fraction of a second. Time can be saved and also by this experience customers are very glad about using the service.

4. Quality improvement

* When it was a manual process it is very hard to maintain the perfect structure of quality. That is, we maintain files and in document format. At that time, we get any number of the invoice to be added. In the rush, we do not maintain the quality and correctness of the work.

* There is a chance of high risk to miss the values or enter the inappropriate values. It may cause loss to the business. To rectify these issues, they use the automation process.

* When the automation workflow process enters it sorted out all the problems faced in Quality improvement. There is no manual entry process. Everything has been automated as per the needs of the business.

*There is no chance of misspelling of the values because it has been automated and the values are taken by themselves.

Core Advantages of Accounts Payable Workflow Automation

*Automation saves our work and settles the amount on time and there will be no drawback in payment.

*Works are done accurately and there will be no guesswork.

*By this automation we can reduce the penalty for late payment. Instead, we get discounts for early payment.

*Eliminates the paper cost, fax, transmission, files. It can be stored in single devices and saves the cost.

*Stops extra labor costs and improves exception handling.

*Instance access invoices allow distributed coding and prevent duplicate payments.

*Customer gets satisfied and they are tension free and their data are also protective.

These are some of the common advantages and workflow of the accounts payable workflow automation.

In the conclusion, the simple process is that the mail has been received through electronic devices and they are captured and saved in the cloud. And then the workflow process starts.

In the workflow process, they collect the data and sends it automatically to the managers to validate and for the approval. After the approval is processed the next steps go for the payment. Once the payment process is done then the next step goes to audit.

If your organization looking for an Account payable outsourcing service then why are you overthinking? Just Visit Calman Analytics for more information and how it benefits your organization to get succeed.