AP automation or accounts payable automation refers to tools and processes that remove the need to handle the payable accounts manually. These are mostly specific software that automates the whole system of an organization’s accounts payable. Works like verifying purchase orders and invoices or entering tons of data manually takes a backseat with this tool.
The development of the AP automation tool has been recent, and more and more companies are adapting to it with passing days. It is the fast and error-free handling of accounts payable data that has increased the usage of this tool from the beginning. Besides, the software can also be accessed from anywhere, making the process easier and your accounts team more productive.
There are different softwares available that perform AP automation, and by knowing your organization’s needs, you can decide which suits you best. But before that, you should know if you even need to use one. Thus, in this article, we will tell you the 5 signs that show you need an AP automation tool for your organization.
5 Signs You Need an AP Automation Tool
- Too many errors lately
Mistakes can be easily made considering the large volume of data that accounts payable deals with. And having employees process this huge amount of information makes it easily subject to errors. Thus if you can relate to such a situation in your organization, you should use AP automation. Any software of accounts payable automation is dedicated to capturing, rechecking, and removing repeated data, and being a software, error-free results are guaranteed.
- Making late payments
Manually handling purchase orders and invoices and looking after approvals of payments that are yet to be made can be troublesome to even the best of accounts teams. Considering the volume and hassle of using a paper system, it is only human that employees lose track and miss deadlines of payment and approvals from time to time. But with AP automation software, invoices can be tracked and scheduled for approvals, and so can be payments.
- Increased business
Seeing your business grow is amazing, meaning more customers, more revenue, and even more responsibility. The increasing business also increases the need for supplies, in turn increasing the workload of the accounts payable department. The employees then need to work with even more information which can pave the way for more errors and delayed payments. AP automation tools can prove helpful for your growing business, as they let you control accounts payable intricacies efficiently and without any mistakes.
- Evolving team
Changes in your accounts team composition can be chaotic. Whether you are hiring a new employee or letting go of an old one, the manual system of managing accounts payable requires some familiarity, knowledge, and practice. The process can be time-consuming and frustrating to adapt to for a new employee. Most AP automation softwares make this learning procedure fast and easy with their simple and user-friendly interfaces. Furthermore, they can be accessed remotely, giving time to new employees to get used to it.
- Worried about fraud
In case you have new employees coming in amidst increasing business, chances are your organization will face fraud. Maintaining the accounts payable manually can be growingly troublesome, with every pile of documents constantly being at risk. Besides, if there occur constant errors while dealing with accounts payable, the probability is someone in the AP department of your organization is committing fraud. To solve this issue, going paperless with AP automation softwares is considered best.
To conclude, AP automation solutions make the process of working with accounts payable easy, efficient, and time-effective. Irrespective of the 5 signs, companies have shifted to these solutions to ease out their functioning; and with passing time, the present scenario suggests only an upward growth of the same. Therefore, it’s only wise that you consider using AP automation solution for your company now.
At Mynd, we are equipped with a wide range of offerings that help clients manage their end-to-end accounts payable function. Using the extensive experience of two decades in giving simplified solutions to complex business problems, we have built tech-enabled solutions that adds value to your accounts payable department.