Managing the Accounts Payable (AP) process can be a daunting task in today's fast-paced business world, where invoices, bills, and payments all need to be accurately and efficiently processed and tracked in order to keep the business running smoothly. That's where online Accounts Payable comes in; an innovative approach to streamlining and automating the payable accounts process.
Let's delve further into what online Accounts Payable actually is, how it operations, and how the integration of accounting and technology can bring numerous benefits to businesses.
What Is Online Accounts Payable and How Does It Work?
Online Accounts Payable automation is a software-based system designed to help businesses manage their AP processes effectively. It automates various tasks such as invoice processing, approval workflows, and payment processing, therefore streamlining the entire payment cycle.
Online Accounts Payable systems integrate with the company's existing accounting or Enterprise Resource Planning (ERP) system, allowing for seamless invoice data transfer between the two and eliminating the need for manual data entry. Is it worth it? Statistics show that by implementing an automated Accounts Payable solution, businesses can reduce their invoice processing times by up to 80%.
The system offers an online platform for invoice management, where invoices can go through the approval prosses -be submitted, reviewed, and approved - in a single, centralized location. The AP process is also visible in real-time, allowing businesses to track the status of their invoices and payments and to quickly identify any issues that may arise.
How To Set Up an Online Accounts Payable System
To successfully implement an online Accounts Payable system, businesses must follow a series of steps. The first step is to select an appropriate accounting software solution that meets the specific requirements of the business. There are many options for automation software available so it is essential to choose one that offers the needed features and functionality.
Once the AP software platform is selected, the software must then be integrated with the company's accounting system using whatever integration methods were provided by the software vendor. This ensures that all data transfer can be done automatically, which saves time and reduces the risk of errors that can occur with manual data entry.
After integration, the online Accounts Payable system can be used, with invoices being submitted directly through the platform. The system will automatically capture the necessary information, eliminate manual data entry, and route the invoice through the appropriate approval workflows. Once approved, the system will then process the payment to the vendor.
What Are the Benefits of Using an Online Accounting Software System?
Using an online Accounts Payable system offers numerous benefits for businesses. First and one of the most significant of these is increased efficiency. An online AP automation software platform streamlines many of the time-consuming tasks associated with the AP process, such as invoice routing, and payment processing. By streamlining the process, an automation payable automation solution saves time and allows businesses to focus on other, more strategic tasks.
Another benefit is increased accuracy. Online accounts payable greatly reduces the risk of errors that can occur when data is entered manually. The system can also identify any discrepancies or duplicate invoices, reducing the risk of overpayment or incorrect payments.
An online system also improves security, providing restricted or permission-based access to sensitive financial data, mitigating the risk of fraud or data breaches. Moreover, the system keeps a comprehensive audit trail of all Accounts Payable transactions, promoting transparency and accountability.
Obviously, there are more but these are all key, overreaching factors that improve business operations.
How Does Accounts Payable Software Enhance Efficiency and Improve Accuracy?
As illustrated by the benefits above, implementing an online Accounts Payable process can significantly enhance the efficiency and accuracy of the AP process. Some examples of this include:
Eliminating Manual Data Entry
One of the primary ways that online Accounts Payable improves efficiency and accuracy is by eliminating the need for manual data entry. This saves times time and reduces errors that may otherwise occur with a manual business process, such as misentered information or lost paperwork.
Streamlining the Approval Workflow Process
Online Accounts Payable also streamlines the invoice approval workflow process. The system automatically routes invoices to the designated approver, reducing the time that it takes to get invoices validated. Management gains real-time visibility into the approval process, allowing businesses to track the status of invoices and quickly identify any bottlenecks.
Automatic Matching of Invoices to Purchase Orders
Automatically matching invoices to Purchase Orders (PO) improves efficiency and accuracy throughout the entire payable process, simply by eliminating matching errors right from the beginning. Invoices are matched to POs and to receipts, ensuring that the billing information matches the goods or services received.
Easy-to-Use Platform for Vendor Management
Online Accounts Payable also provides an easy-to-use platform for vendor management purposes. Businesses can easily access and manage vendor information, track payment history, and view outstanding invoices. The feature makes vendor management more efficient, reducing the time and effort required.
On-Time Payments
Automating the AP process helps ensure that payments are sent on time, often with the ability to set workflow rules that send reminders well before the payment due date. Not only does this help avoid any backlog of outstanding bills and late fees but also facilitates the possibility of early payment discounts.
Overall, online Accounts Payable significantly improves the efficiency and accuracy of key components of the AP process through automating - and therefore eliminating - time-consuming and error-prone tasks. This automation saves time, reduces errors, and provides real-time visibility which make the entire payment process more efficient and effective.
Key Features and Benefits to Consider When Selection an Online Accounts Payable Solution
When selecting an online payable automation solution, businesses should look for a solution that caters to their specific business requirements by offering features and functionalities that suit their needs. Here are 8 key components that should be considered when evaluating invoice automation solutions:
Cloud-Based Platform
A cloud-based platform offers flexibility and convenience, allowing users to access the system from anywhere at any time. All that is required is an internet connection.
Automated Invoice Processing
Automated invoice processing eliminates the need for manual data entry, saving time and reducing the risk of errors.
Approval Workflows
Approval workflows streamline the approval process, reducing the time it takes to process and approve invoices while providing real-time visibility throughout the entire approval workflow.
Purchase Order Matching
Automated Purchase Order (PO) matching ensures that invoices match the goods or services received, reducing the risk of errors and discrepancies. This process is typically done manually, which can be time-consuming and prone to error. By automating PO matching, the system can quickly and accurately identify any discrepancies between the invoice and the PO, saving time and reducing errors.
Vendor Management
Vendor management features allow businesses to easily manage vendor information, track payment history, and view outstanding invoices.
Integration With Accounting Systems
Integration with existing accounting systems ensures seamless data transfer, eliminates the need for manual data entry, and reduces the risk of errors. This feature also means that the entire organization has access to the same information at the same time, ensuring consistency across departments.
Security
Security features, such as secure access and data encryption, help protect sensitive financial data and reduce the risk of fraud or data breaches.
Product Support
Product support, including customer service and training, can help businesses get up and running quickly and ensure that they are using the system effectively. Overall, businesses should look for an online accounts payable solution that offers the features and functionality that are necessary for their business needs. A good online AP solution should provide automation, efficiency, accuracy, and security, while also offering flexibility and convenience all in one platform.
Overall, businesses should look for an online Accounts Payable solution that provides automation, efficiency, accuracy, and security, while also offering flexibility and convenience to suit their unique business needs.
Vive la Révolution!
Online Accounts Payable automation software is a powerful tool for businesses looking to streamline and automate their AP processes. With its automated invoice processing, approval workflows, PO matching, and vendor management features, online accounts payable can help businesses save time, reduce errors, and increase accuracy. By selecting the right online accounts payable solution and implementing it effectively, businesses can optimize the efficiency, accuracy, and security of their AP processes, and focus on more strategic tasks.
What's Next?
At Yooz, we provide the features and functionality businesses need to make AP processes faster, easier, and more secure. Request a demo today to learn more.
