Accounts Payable Automation
The accounts payable process has always been a crucial, albeit inefficient part of the business cycle. Businesses have traditionally relied on manual data entry and other labor intensive methods to process forms such as invoices and receipts. Managing the business’ internal workings in a timely manner while complying with financial regulations can be difficult depending on the method that is used. According to Chris Anderson on themanager.org, using paper is the largest cost involved in the accounts payable process. It would stand to reason then that eliminating the use of paper will deliver more fiscally optimal results.
To fully eliminate the use of paper, and thus reduce cost, businesses need to automate their accounts payable process with automation software. There is a higher risk for late payments, erroneous forms processing, and document mismanagement when paper is involved. According to a study conducted by the Aberdeen Group, businesses that used automation software in their accounts payable process experienced savings ranging from 40% to 60%. David Furth, of The CPA Journal Online writes that businesses looking for an automation solution should focus on the three factors of capture, business process, and reporting. Namely, this entails how the software would extract the data from the forms, how much effort would be needed to support the business process, and how accessible the data will be.
Many offices have already switched from manual data entry to automated invoice processing, and many more continue to do so. Technology can truly benefit businesses and organizations, as long as the initiative is taken to implement it.