Eliminating accounting errors is essential for any company that pays all of its expenses through an accounts payable process. Because even the smallest errors may cause the company to large sums of money, AP operations need to implement processes that will not only eliminate unnecessary errors but become more efficient and effective in getting these jobs done correctly and on time.
One of the best ways to achieve these goals and objectives is to look for AP automated solutions like sage ap automation. With these types of software applications in an Accounts Payable operation, the errors that come from manual calculations can easily be minimized and completely eliminated with the best software products today.
What is AP Automation?
Accounts Payable automation replaces the older manual processes with innovative technologies. Based on the software features included in these applications, they are designed to streamline tasks so that they are much easier to perform and complete. AP automation can also help to reduce the number of AP team members a company hires for their accounts payable operations and helps in creating a paperless AP system.
What does it do?
The design of these systems creates an end to end invoice paperless process that efficiently movies an invoice from submission to an approved digital invoice that is paid quickly based on its terms. In some cases, the AP automation software product is designed to suit the smaller company’s basic needs. Or, AP automation software system may be customized to the needs and preferences of a specific company. In either case, the company’s that implement these types of systems can replace most or all of their manual invoices procedures with an easy to input, review, and approve invoice solution.
How to Prevent Errors?
An automated Accounts Payable system helps to reduce many different types of common errors that’s normally embedded within a paper manual invoice system. Therefore, it will not only reduce labor but also the timing in processing invoices easily and quickly. For instance, an automated invoice paperless system allows the employee to only produce one unique record of a particular invoice that is submitted by a vendor. Once created the assigned AP employee can work on paying the invoice so that this amount is no longer owed to that particular vendor. Therefore, with this new automated process, the invoice is only paid once. With the older manual processing of accounts payable invoices, the chances are much higher of the exact invoice amount being paid twice in error, especially if an invoice was submitted by paper more than one time.
There are other areas that can be eliminated by the automated way of processing invoices as well. For instance, when there is a huge backlog of invoices outstanding to be processed, there is usually a much higher chance of the vendor’s invoices being processed after the late cut-off. In these cases, the vendor may also be charged late fees in error. With a more efficient and effective automated software application in place, the backlog of invoices can be completely eliminated.
Why is it Important for Business?
An Automated Ap system is critical to the success of any business that has to pay a lot of invoices to vendors and anyone else that has an expense account outstanding.
With the implementation of these processes, every task that has to be performed can be completed with accuracy and with speed. Therefore, it is in the best interest of companies who process their invoices in large volumes with the use of an automated AP software application. These applications are highly recommended in the industry for a number of the following”
- Reducing permanent headcount in the AP processing area
- Increase capability of processing large volumes quickly with a better accuracy rates
- Saves the company money in the long
- Maintains Goodwill with Customers with accurate account info
To eliminate accounting errors in AP processing, many companies are replacing their outdated accounts payable processes with automated solutions. These automated processes are designed with many different purposes in mind, including saving the company money by eliminating errors that require rework and increasing the company’s ability to process larger volumes efficiently.