Automated Accounts Payable - What it is and Why You Need it
If you find that you are being pulled away from the core of your business, it might have something to do with a lack of automation.
Administration tasks, fixing errors, your bookkeeping and your accounts are all time-consuming, but can be automated.
A third of small business owners want to save time, however half are not doing anything about it. That is a lot of people with not a lot of time for themselves.
So how can this help you from an accounting perspective?
This is what automated accounts payable is:
Regardless of how an invoice arrives – in the post, through email, or via an online portal – software can be used to process it.
You can scan a paper invoice into the system with a mobile phone or upload electronic invoices from an email.
The software advises your client when invoices are due.
Your clients can approve and pay invoices from within the software, quickly.
Training is quick and painless too. Efficient?
So here is a quick summary of the benefits of automated accounts payable:
1. Reduces errors – software can extract data from electronic invoices/can read the data on a photograph of a paper invoice, eliminating human error
2. Streamline invoice approval – you can set up a workflow for all invoices to follow, then the software does the rest.
3. Boost security and peace of mind - Using software to pay accounts is far more secure. The cash can be transferred securely to the creditor online, creating a traceable record of the transaction which is easy to review, and it cannot be lost.
4. Get a better understanding of cashflow - Automated accounts payable integrates with accounting software so you and your client can track cashflow in real time. This helps:
· keep track of spending
· compare cash-in against cash-out
· see and pre-empt emerging cashflow problems
From the moment you start using it, you will immediately notice how automated payment processing saves time and stress. The real-time cashflow dashboard could prove to be the biggest bonus in the long run and will help you to plan and forecast, saving you money too.
Thank you for reading our blog. If you have any interests or would just to discuss this more, email us at info@allseasonsaccountants.co.uk
Disclaimer – this information is correct at the time of publication and is provided as general information not to be relied upon without a discussion with a suitably qualified professional.