AP, which refers to accounts payable, is a department of a company that deals with payments on behalf of your company. Any goods and services you procure from vendors are a part of accounts payable.
The accounts payable department’s job is to manage invoices and payments to these vendors and create a healthy relationship with them for good business. Sounds simple? Well, it isn’t. Their job, when done manually, poses a lot of problems. As there are a lot of processes that a simple document needs to go through that it increases the probability of human error.
Keeping all the problems in mind, AP automation was introduced to the industry. If you are someone who is researching the topic, and whether you want to adopt it for yourself or not, then you are at the right place. Here’s why AP automation will change your organization.
Benefits of AP automation
AP automation is, as the name suggests, the automation of all the processes by digital means. Everything is getting digitized, and for a good reason. No matter how much we deny it, machines are better at a lot of things than us humans. AP automation opens up a lot of doors for companies while saving time and money. Here are the benefits that one can expect after adopting AP automation:
● Eliminating paper
Paperwork is a big headache for any department, but the accounts payable department has to deal with a huge chunk of paperwork. If you have an AP department that is processing everything using papers, then they are definitely getting weighed down by it. Working with paper reduces efficiency and increases cost and management overhead. AP automation helps you remove paper altogether, which helps your employees work efficiently.
● Streamlining processes
Humans are talented; there is no doubt about that. However, as we are humans, we will make mistakes of some sort somewhere sometime. When it comes to dealing with transactions, even a small mistake can end up costing companies a lot of money.
To deal with all this, AP automation takes all the processes into its own hand and delivers results with 99% accuracy. With invoice automation and digital payment methods, everything gets simpler, and your employees can focus on more trivial tasks without getting slowed down.
Security is a big concern for everyone, from an individual to a big company. Malicious hackers try to get sensitive information and take money from legitimate companies. As AP automation is a digital means of doing things, you might think that it is more vulnerable to security threats. However, that is not the case. These systems come with security measures that enhance their own security while also protecting you from fraudulent activities.
All the benefits that we mentioned above are just the tip of the iceberg. AP automation is becoming very popular, and experts are suggesting that in a few years, it will be an industry of billions. If you are an organization still doing things the conventional way, then you might want to get ahead of the competition by adopting this strategy.