The accounts payable process is one business activity that both employers and employees will appreciate automating. This is because the traditional approach to managing accounts payable is resource intensive. And one that increases the risk of costly mistakes being made.
A largely manual process—which is the traditional method of managing accounts payable—increases the chance of errors being made, duplicated entries, and late payments to creditors. Switching to using professional accounts payable software allows for many processes to be automated. Improving productivity, cash flow visibility, and offering businesses many other benefits.
The Benefits of Accounts Payable Software
Accounts payable software in modern accounting solutions offer both small and large business many benefits, with most noticed almost immediately.
Accounts Payable Software Streamlines Processes
With accounts payable software you can automate manual tasks, such as capturing invoices and matching them to purchase order numbers. You can also streamline approval workflows, ensuring all invoices are paid on time. And for recurring invoices, you can even set up and schedule automatic payments. This leaves your accounting department with more time to analyse creditors and other reports.
It Improves Accuracy
Manually capturing and processing invoices is prone to human error. Whether it is the invoice amount, the creditor code, or the due date that is captured incorrectly, mistakes can cost you money, waste time correcting, and harm your relationship with suppliers. With accounts payable software, mistakes caused by human error are all but eliminated.
It Strengthens Supplier Relationships
Paying supplier invoices on time—and correctly—helps build a healthy relationship with all your suppliers. This puts you in a better position to negotiate better terms, from line discounts to early settlement discounts, or simply more favourable payment terms.
Accounts Payable Software Enhances Record Keeping
Accounts payable software that is part of—or integrates with—your accounting software enhances your record keeping. From being able to see past, current, and pending transactions, through to being able to analyse all purchases by supplier type or expense code. And by integrating with other financial modules, you can expect to always have an accurate view of your cash flow, allowing you to confidently make business decisions.
It Helps Reduce Costs
Streamlining the accounts payable process will lead to your accounting department having to allocate less time and resources to the processing and payment of invoices. And by always having a clear view of when each invoice is due, you can ensure payments are processed on time and you don’t incur any late payment penalties.
Choosing the right accounts payable software for your business is crucial. It should either be part of a complete accounting and financial management platform, or seamlessly integrate with your current accounting system. More importantly, it needs to meet all your business’s specific needs and requirements, providing you with all the benefits you expect. If you’re looking for a new solution for your business, speak to us to discover how Arrow Financials and Tencia accounting ERP software could benefit your business. And help you better manage your accounts payable process.
