Most companies typically rely on tried-and-tested processes to handle their accounts payables. This means that most business processes are handled by employees manually entering data into a system in order to facilitate payments. While such processes have been the norm for most companies, the truth is that they are not the most efficient way to handle such core business practices.
Automating business processes can help you revolutionise the way your business operations are handled. This holds true for your accounts payables the most, as you certainly cannot afford any mistakes in this vertical.
Here’s how automating your accounts payable can help your business:
Faster approval processes
If your employees tend to travel for work, it is important to have a robust expense management system in place to prevent expense fraud and subsequent losses. The best way to manage your expenses is by implementing business processes that allow faster approvals. While people tend to take a longer time to evaluate expense claims or budget approvals, an automated system can handle all your needs with great speed and efficiency.
One of the reasons of this is because automated systems rely on predetermined rules set in place by the organization. Say you’ve set a specific maximum amount with regards to an expense claim. Employees with claims that exceed the amount will receive an automatic rejection, or reimbursement up to the predetermined amount, as per the settings you choose.
Better relationships with vendors and suppliers
As a business, you rely heavily on your vendors, which is why it is important to ensure that all payments and dues are cleared on time. While reviewing invoices, purchase orders, and vendor information can take employees a while, the same cannot be said for automated systems.
In this case, automating your accounts payable processes can ensure that pertinent documents are reviewed and approved on time, and payments are released consistently within a set time frame. With your vendors receiving accurate payments on time, you can count on their loyalty to last.
Fewer human errors
No matter how experienced your accounts executives may be, there’s no denying the fact that everyone makes mistakes from time to time. Automating your accounts payables can eliminate the danger of any human errors, which additionally reduces any financial risks that your business can face in the future.
From entering accurate data into the system to identifying any red flags in the system, software used for automating accounts payable can certainly be more efficient than people.
Higher scope for business process optimization
Whether you run a small business or a large one, it is important to note that spotting financial drains can be challenging. This is because business processes, orders, or vendors that may seem crucial to running your business can actually be doing more harm than good – and this is often something that comes into the light once the losses grow fairly large.
However, when you are basing your business operations on accurate, real-time data, you can identify potential sinkholes before they grow into huge problems, and nip them in the bud. Real-time data can also help you evaluate processes that are working well for you, so that you can optimize the same and improve your profits and revenue.
Easy Scalability for the accounts department
As a business owner, you’re always planning for growth. However, many small businesses find it much harder to handle routine processes once they experience a growth in sales or the size of their organization.
Automating business processes can ensure that all departments can be scaled with ease, as and when required. You can ensure all payments and financial operations run as smoothly as they did before, without having to hire new people in the accounts team.
Lower operational costs
In order to improve profits, you must cut down on needless expenses. While there are times when these expenses are incurred due to external factors that are out of one’s control, one must also note that often, such expenses are incurred due to a lack of optimization of business processes.
As your company grows, you may find yourself hiring more people to handle the accounts payables, thereby increasing your operational costs. By automating the accounts payables, you can eliminate the cost of supporting a larger accounts team – in fact, you can even strip the team to its bare-bones, with justone single executive handling the software or employee/vendor queries.
The key to ensuring that your business runs smoothly is by adopting smarter solutions that help you focus on business objectives instead of being bogged down by tedious paperwork. Automating your accounts payables can help your business grow by reducing costs, optimizing work flow, and improving current processes.
To know more about how you can boost your revenue by automating your accounts payables, get in touch with us today.