Accounts Payable Automation 101
If you’re finding your Accounts Payable (AP) team bogged down in paperwork, manual processes, and hours of reconciling against invoices and employee travel expenses, now is the time to explore ways of simplifying and automating your business operations to bring in additional revenue.
What Is AP Automation?
Accounts Payable (AP) Automation is essentially eliminating paper-intensive and manual processes. AP Automation allows vendors to get paid more quickly, makes reconciliation effortless, and has built-in payments fraud detection. By automating AP, companies are able to save money and redirect resources, including the AP team’s time, to more profitable tasks.
How AP Automation Saves Money
Electronic accounts payable takes care of any delays in the receipt of data to your financial systems, which can positively affect your KPM (key performance metrics). Such metrics include percentage of human error and percentage of overdue invoices. Your accounts payable metrics can all be improved by automating your processes.
AP automation also increases the accuracy of that data which will be inputted automatically and no longer exposed to the possibility of human error. The possibility of human error such as double-payments on invoices can be difficult and expensive to correct, so having an automatic system gives you the confidence that your information is always right.
Improving the effectiveness and accuracy of your accounts payables saves you money by reducing the cost of printing and processing physical forms of documentation as well as paper checks. Additionally, the time taken by employees to manually input or correct data is saved from your labor costs. Your workforce can then focus more of their time on tasks that generate profit.
Not only will automating AP save you some of what you were already spending, but the process can help put extra money in your pocket. By paying your vendors faster via automation, it eliminates the risk of late fees. This strengthens your vendor relationships and can open the door to receiving potential discounts for your quick payment capability. Rebates and revenue-share opportunities based on transaction volume are also available in some cases.
Security with AP Automation
As much as business revolves around the bottom line, another vital aspect of operating a seamless and efficient process is by ensuring the security of information. Printing countless copies of invoices with sensitive information opens up your business and clients to scams. Transferring your payments using a secure automated system will save time and eliminates the possibility of fraud more effectively than a file cabinet in the corner.
There are secure methods for payments procured outside the office as well. With globalVCard’s P-Card option, you can provide your employees with protected credit cards loaded with presets that give you outstanding control over spending constraints. P-Cards work just like a credit card, in the sense that the number can be processed the same way in order to purchase goods and services related to your business. It’s different because of advanced technology that employs customizable compliance measures. Personalize when cards are used, what merchant types are permitted, how much is able to be spent on the card, and how many times the card can be run at the press of a button. This prevents business funds from being misused or mishandled.
Virtual cards, or V-Cards, are given similar options but have the added benefit of being exactly what it says — virtual. This cardless option is ideal for situations in your business that require a specific amount for a one-time payment such as a hotel reservation or a piece of equipment. Providing payment using a card number that has a set dollar and transaction limit reserves the temporary card number to be used for its intended purpose and nothing more. No worries of having a company credit card being used for extraneous items, being stolen, or needing to cancel cards.
Take advantage of the benefits that automating your accounts payable processes can provide to you. After a relatively brief implementation period, your employees and your bottom-line will feel the difference in what AP automation can do. Let CSI Enterprises help. Our AP Certified staff will ensure excellent service that gives you the ability to take control of your accounts.