Robotic Automation brings in unanimity to all industry sectors where there is an opportunity to automate repetitive tasks and structured processes. As per its guidelines, the Finance and Accounting industry is wide open to a variety of automatable tasks.

Accounts payable automation is a potential department within finance and accounting where management of its process is manual, from procurement to payment. Accounts payable automation addresses not only cost reduction but also in

• Providing clear visibility and control over a company’s payment structure.
• Transferring AP staff for more productive tasks.
• Formulates a better control over major departments of the firm (procurement, Supply & Finance).

According to the Level payables insight reporting in 2020, over 40% of small and medium-sized enterprises claim they’re ‘somewhat likely’ to adopt AP automation software in 2021.

Also Read: What gains can be achieved by using robotic automation in accounts payable processes?

With many benefits, we are just narrowing down the best recommendations needed during automating your accounts payable process.

1. Redefining the accounting firms’ goals through AP automation:
   The gift of accounts payable automation is its unlimited range where any process that is repetitive and time-consuming in nature can be automated. Therefore, to achieve them, we need to eliminate the bottlenecks preventing the path to achieve it. Through accounts payable automation, the results are achieved through :
   • Reduction of costs as there is a yield of more invoices processed, resulting in full time equivalent productivity thereby reducing both administrative and operational costs.
   • Reduction of supplier questions as there is reduction in errors. Rapid matching & approval process helps in clearing outstanding payment invoices quicker.
   • Reduction of stress to the AP staff as they are relieved from recurring and tedious jobs.
2. Regulates the accounting firms operations through AP automation:
   With accuracy and efficiency in your deliverables, it enlarges control over the firms’ operations through
   • Cost control as when your reports are presented in real time, it gives a clear picture of your spending pattern. The real liquidity position is analysed as we understand to prioritise places where PO needs to be sent or deferred, when payment needs to be made etc, how to raise additional funds etc.
   • Timely payment gives you an edge over your competitors, as suppliers’ are ensured of their payment. It also set an alert for preventing liquidated damages, grab early payment discounts and maintaining firms’ cash flow.
   • A quality data devoid of any form of errors loaded as a ‘master data’ in your system ascertains a great level of authority to the accessing team members. It gives an easy passage for clearing and processing the invoices with endorsement and approval in its life cycle.
3. Assured compliance with external sources through AP automation:
   Every business entity needs to comply with the rules and regulations on the country where they operate
   • Promotes goodwill because any accounting firm that is disciplined in filing error free tax returns, and averts the risk of penalising due to non compliance helps increase the firm’s benefits by three fold. It strengthens the bonding with the suppliers, adheres to the regulatory governance and promotes untainted reputation to the firm.
   • Promotes validated e-signatures because AP automation instills a sense of integrity to your work culture. It stands authenticated during both internal or external audits and prevents any form of conflicts of interest.
4. Flexible & adaptable to the changing times through AP automation:
   Firms operations should not be disrupted due to external or internal events, AP automation helps firms to pursue its reliability streak due to its traits of flexibility to the changing norms.
   • Ability to scale as per the demand of the market and able to implement the success rate in other branches of your organisation or firms.
   • Ability to perform even in dire strait situations without office infrastructure. Through AP automation, there is no disruptiveness in its functioning.
5. Avoiding security breach through AP automation:
   Protecting the details from purchase orders and invoices is very important for sustaining the confidentiality of firms’ business operations. Therefore, documents exchanged should be uploaded in a secured server in encrypted mode of communication. Further, internally, the various hierarchical levels of access and validation helps to avoid any form of security breach. This prevents unauthorized access to the invoices routing from the cycle of procurement to payment.

Also Read: Payroll automation : Changing your firms’ landscape

If you are interested in automating your accounts payable process, we are ready to help you. Please contact us to get a quote.