The necessity to efficiently process and manage large volumes of invoices to optimize the cash flow of business has propelled the evolution of Accounts Payable today. Started off as an arduous manual process that demanded large resources and time, Accounts Payable has transformed itself into an automated process that boosts efficiency and accuracy of invoice processing to achieve operational excellence for a business entity.
In this blog here we help you know why automated accounts payable is a must for every entity looking to scale their business for growth:
Automated Accounts Payable & Its benefits:
By integrating with the existing accounting systems seamlessly, automated Accounts Payable avoids payments errors, accelerates cycle times, enables improved transparency, monitoring & control and saves time and cost while doing so. Automation of accounts payable has also helped large businesses completely leverage the Accounts Payable as a strategic centre for business insights to improve their cash flow, working capital and ultimately, their bottom line.
Automated Accounts Payable is especially beneficial for small and medium businesses looking for an improved financial position, and business growth while gaining a competitive edge over large organisations. However, the majority of small and medium businesses often continue with manual AP process already reeling with errors, delayed payments, penalties, interest charges and un-optimized cash flow system. And when an entity aims to scale their business, this manual paper-based AP process can crumble under presser high volume sales further increasing the complexity.
So if you are looking to scale your business for growth it is imperative to fortify crucial internal systems like Accounts Payable with the right foundation to support high volume sales and payment obligations. And this can only happen when businesses choose to automate Accounts Payable and if you want to know why then read on:
How automated Accounts Payable can help scale your business for growth?
Having helped many small and medium businesses with our Remote Accounts Payable Services, our experts at Back Office Accountants have delivered accurate and efficient Automated Accounts Payable Services that have benefited businesses in the following ways:
Maximum Efficiency in Payment Processing: Manual and paper-based AP process which involves review, printing, approval of invoices and mailing paper checks eat away a lot of time while being inefficient. Given it is a manual process any error or mistake at any step can further delay the payments costing the business time and money to resolve. Automating Accounts Payable streamlines the invoice approval process accelerating every step in processing while avoiding risks of duplicate, double or missed payments, saving time and money in the process.
Improved Control and Efficiency: Manual AP process has more tendency to become unorganized and ambiguous due to lack of streamline system. With an increase in the volume of invoices the complexity increases resulting in lack of control which can manifest in the form of payment errors, penalties and dented vendor relationships.
A streamlined automated AP system provided stupendous transparency over the entire process no matter how high the volume of invoices is. With a centralised automated system, you can easily track the location of the invoice, its status and you can easily compare the efficiency of the cycle with KPIs. Complete visibility offered by automated AP process gives you time and space to make strategic decisions for improved efficiency as you scale-up your business.
Time & Cost Savings: Manual AP process which involves manual data entry, invoice processing involves hidden costs and high volume work hours while carrying the risk of manual errors and business fraud which can cost the company dearly.
Duplicate payments, late payments, penalties and business malpractices can be easily avoided and automated AP process can be leveraged to unlock cost-saving opportunities in the form of discounts and other optimizations. Automated AP process avoids business risks and costs only a fraction of the average amount spent on invoice processing in manual Accounts Payable. It also minimizes total work hours needed to efficiently tackling all payment obligations saving a lot on labour costs. And this helps improve the productivity of the overall company by guiding the accounting resources to their activities that demand their core-expertise.
Automated AP process enhances the efficiency of the payment process, improves control and transparency and lays a solid financial foundation to help you scale-up. If you are a small and medium business looking to scale-up for growth, there are only two ways you can leverage all these benefits: Set-up an automated AP process or outsource Accounts Payable process to expert back-office accounting firms like Back Office Accountants. If you choose to outsource Accounts Payable, we also provide expert Remote Accounts Payable Services that integrates into your remote working models. For more information, you can contact us here: https://www.backofficeaccountants.com/