With so many options for accounts payable technology—not to mention all the accounting terms and definitions you must wade through—this search can be difficult. Streamlining accounts payable is a task that is well worth taking on, however. The benefits that companies receive from automating these processes can be remarkable. In some instances, companies have saved up to 60 percent in payment processing costs.
Additionally, a program is a lot less likely to make a mistake than a human. This means that tasks are much less likely to get lost in the shuffle of things. Streamlining the accounts payable process has become a top priority for many businesses.
Companies that automate their accounts payable process can potentially free up time and resources. This allows owners to omit the repetitive tasks that are often associated with the accounts payable process. Owners can then use that time to have their AP team focus on more important parts of running their business.
Accounts Payable Process
The accounts payable process can take a considerable amount of a company’s time. Any accounts payable process flow diagram will likely show several accounts payable process steps. Each one of these tasks will take time and can slow down the effectiveness of an AP team.
When teams depend on humans to respond to or complete these many functions, the process may take longer than needed. A common question that may arise is simple: what is accounts payable on a balance sheet? Much work goes into determining the overall view of accounts payable on a balance sheet. For this reason, companies may decide to automate their process.
Through automation, instantaneous completion of tasks can speed up the process dramatically. In addition to speeding up the process, automation also provides a more reliable system. Tasks are less likely to fall through the cracks when handed over to automated systems. There are a lot of platforms that attempt to provide this service, but the right platform will depend heavily on your company’s specific needs.
Companies like AvidXchange have software solutions that can provide automation. They can do this for the entire end-to-end process of accounts payable. The automation of AP tasks works to provide a more efficient process. With a time-saving solution like this, businesses can save money on their AP staffing needs and make sure their vendors are paid correctly and efficiently.
Accounts Payable Examples
Payment procedures provided by AP platforms provide business owners with efficient, accurate systems. The efficiency of these platforms often frees up resources and manpower. When this happens, companies may be able to streamline their processes. Companies that insist on keeping their accounts payable procedures manual risk falling behind their competitors, especially as more and more continue to seize the advantages provided by automation.
When deciding on a new platform, several things can show how reliable a service is. Aside from asking accounts payable process interview questions, there are testimonies from others. Accounts payable examples offer a preview of how to utilize the platform well. Additionally, accounts payable analytics examples offer insights into practices you may be unaware of.
One great example of a company utilizing AP tools comes from a software company based in Texas. This provider had an issue with receiving timely payments; they often had to wait between seven and ten days for remuneration. Deciding they wanted to lower their wait time for revenue, they reached out to AvidXchange.
Through the ACH direct deposit service, this company was able to reduce its wait time to a day or two. That difference of a week can be huge! While this company was able to plan and plot for that money, it’s always better to have it physically in your account.
By taking their accounts payable policy template to companies like AvidXchange, companies can stop stressing over AP needs.
Accounts Payable Process SAP
One thing that companies can use to determine the right platform for them is to consider the integrations that they will need. Each business utilizes different tools. Finding a system that integrates with those tools is crucial. For many companies, this means ensuring that accounts payable process SAP compatibility exists for the platform they choose.
Many companies utilize SAP solutions like Concur Invoice. If you already use the SAP accounts payable automation system, it’s hard to make a switch to something entirely new. Yet if your AP platform won’t integrate with SAP, switching will be necessary. Luckily, AvidPay from AvidXchange integrates with Concur Invoice.
This provides a payment automation solution built to help businesses eliminate inefficiencies. This combination may assist businesses in eliminating risk-prone, inefficient payment processes. Additionally, it helps AP teams to pay bills with ease. An accounts payable process flow chart in SAP allows for scalable business growth through automation.
When searching for an AP platform that works for you, it is beneficial to find one that can make your current system more efficient. This is always more valuable than adopting a brand-new system altogether. Changing a process that is already in place is likely to take up valuable time and resources.
This is why AvidXchange currently offers more than 210 integrations. Their goal—and the goal every AP platform should have—is to streamline your payment process. Companies that require change are merely piling onto your pain.
What Is Accounts Payable Automation
Despite its popularity, many are still asking the question, “What is accounts payable automation?”
The essence of what automation has to offer is the simplicity of current practices. They accomplish this through numerous tools, and there are many payment automation examples. Accounts payable automation best practices will help your AP tasks to run efficiently and accurately.
Different platforms may have different AP automation requirements or abilities. The main thing to avoid when looking for a platform is a service that increases your current workload. The goal is to improve the system you already have, not reinvent it. Companies like AvidXchange work to integrate the current system you are using with a more efficient, automated one.
By taking your current setup and automating it, companies like AvidXchange can streamline your AP tasks. They currently have over 210 integrations with their platform. This helps ensure that your current systems can plug right into theirs.
In addition to this, they offer software to automate invoices, bill payments, purchase orders, and even utilities. Businesses who take advantage of the efficiency offered by companies like AvidXchange can reap the benefits of lightning-fast, ultra-reliable AP processes.
Each company has different needs and therefore requires different tools. AvidXchange is not the only option, but they are currently positioned as one of the top platforms for middle-market businesses.
Accounts Payable Process Improvement
An accounts payable procedures flowchart is often filled with repetitive tasks. These tasks can eat away at time and resources. As companies look at their SOP for accounts payable, they may find themselves noting these particularly time-consuming areas. For many, accounts payable process improvement is becoming a necessity in their business plan.
Looking at accounts payable best practices examples, something becomes clear: automation is key. Automation can help with AP process improvement by delegating repetitive tasks to a computer. This update is bound to boost accounts payable analytics.
These platforms can guide the appropriate course of action for AP processes. They do this through tools like accounts payable predictive analytics and vendor payment process flow charts.
Businesses that utilize AP automation can see up to 60 percent savings in payment processing costs. Companies like AvidXchange work by taking over your payment process as it currently exists and automating it. Not all automation platforms operate as efficiently as AvidXchange, however. Some will require broad changes to the process you currently have. This can bring the AP department to a halt as they learn a new platform and process.
Automation of the accounts payable process is the best way to improve efficiency. Businesses that don’t change to this updated model may end up hurting their future growth.
Invoice Payment Automation
Invoice payment automation is one of the best ways to increase the efficiency of an AP process. Invoice analytics and invoice OCR scanning allow companies to convert all invoices and receipts into a digital format, which can then be managed on a single platform. There are many benefits to this approach, but the main ones include:
Going paperless – Through automated processes that match your current approval workflows, you can say “goodbye” to the mountains of paper.
Control – Customize and streamline workflows through automation. Custom invoice approval processes make control of your AP processes more efficient than ever.
Organization – Cloud-based invoice management platforms allow your information to be available anywhere.
Visibility – Real-time reporting on accounts provides increased visibility to business owners.
Companies like AvidXchange offer the ability for businesses to streamline their invoice process. Through AvidInvoice, they provide powerful tools to provide all the benefits above. Regardless of the solution you choose, invoice payment automation is a powerful tool for businesses.
Automated invoice processes allow all your invoices to be coded, assigned, and routed, no matter how many you have. Automating those processes will save an immense amount of time.