In the world today everything is moving towards automation than manual work. Cars are automatic, washing machines are automatic and you name it. To catch financial accounting too took steps and automated its processes, one of which is accounts payable process.
Why do we need accountspayableautomation? It is because to provide transparency in transactions, to improve data accuracy, to enable better security and auditing chances so fraud can be detected and in addition to gain increased control of cash flow management leading to good forecasting practices etc.
So how can you actually automate accounts payable process? Let us find out how?
1. Through data capture and import
The biggest manual task of an accounts payable process is that of entering invoice into financial accounting system. It can be a heavily time consuming aspect and can the probability of errors is very high. But when you automate the following happens.
Through the help of business technology, it can automatically capture the copy of creditor’s invoice such as from the scanners, email and other file importing methods. Resultantly, you can extract the necessary bits of information out of it as in invoice number, data, and amount and purchase order number or getting a hit to automate such task by finding a dissertation help service among other essential info.
2. By means of intelligent data verification/validation technique
There are many businesses that face the difficulty in entering an invoice. An example of this could be sometimes you have to validate if the invoice details corresponds to the correct purchase order or supplier details. If you do mistake in it, you can adversely cost your company.
Even if you assign extra set of eyes or people to do the validation for you, it will simply take more of your time and waste a lot of your human resources. Hence, install an automated data verification system. This can be made possible, again, with the help of business technology.
Once the data is fed into the system, or as in the point above, captured from an invoice, it would automatically look it up in the financial accounting system for validation/matching. The tasks are simple one such as identifying if the new supplier has been created if not detected in the system and so on.
3. Via workflow and task management
Certain tasks are to be done manually such as data entry detail of the new supplier and other tasks to process a creditor’s invoice. There are people designated specifically for the purpose such as scrutinizing the data entry if it has been entered correctly, filing those invoices on a monthly basis or confirming if the list of items have reached the warehouse.
All this can be curtailed by automating task management. Your workflow will streamline as through automation, each employee will receive a notification about the new task that they need to perform. Paper work will be lessened if not completely eradicated. You achieve transparency, as a result in all invoice processing tasks.
4. By automation of the approval process
The biggest headache you can expect from processing invoices is by seeking approval for them. But you can skip this step either. It is because necessary approval from the seniors/supervisors is necessary. If you choose to skip, it may be that something will get you into hot water at a later stage.
Approval ensure that the invoicing is proper and everything is in order to release the payment. A manager will, therefore, carefully analyze it before giving approval of its processing. After all a manager is tasked with ensuring that the cash stays in the company and does not go out. Nobody likes to see money leaving their account.
When the processes of approval is automated, a business technology will establish certain rules and set conditions as to where a digital invoice gets approved and under which circumstances it gets rejected. With this not only countless hours of seeking approval are saved but the overall efficacy is improved. This way you will know against which invoices payments are supposed to be made.
5. Through digital archiving
We are all aware of how copies of invoices are kept in records so that in case of a discrepancy in future, things can be retrieved and referred to. But with physical copies, there is always a risk of damage by rain, fire or theft. Once that happens you have lost the record and if a dispute were to arise, you are already doomed.
Plus, filing takes a lot of office space. Therefore, if the method of digital archiving is practiced, the need for maintaining a room full of hundreds and thousands of invoice copies will be eliminated. It will all be digitalized and stored in the cloud.
So, it is advisable to make the electronic copies of the invoices. Then digitally file and archive them. This process will reveal if the some copy has been misfiled with the help of text search from a computer. Also, risk of copies getting lost or destroyed is minimized and your filing cabinets will not be overflowing.