Published on April 30th, 2020 | by Sunit Nandi0
How to Use AP Automation to Eliminate Costly Mistakes
Advanced technology has eliminated many tedious tasks, and the AP department is no exception. The implementation of AP automation streamlines operations, increases productivity, improves accuracy and reduces errors. Discover how to adopt and use AP automation solutions to eliminate costly mistakes and save money.
Every Mistake Matters
In accounting, every mistake matters, regardless of how small. Each error costs an organization money, can compromise business relationships, and damage the corporate image. Manual processing is tedious, time-consuming, and subject to inevitable human error. Modern AP automation plays a significant role in reducing the usual errors associated with manual processing, such as missed payments and inaccurate vendor contact information.
Costs Impacting the Business Bottom Line
Common errors made in the AP department have a crucial impact on a business. Late payment fees are unnecessary costs that are easily eliminated by adopting AP automation for touchless invoice processing. Strained vendor relations can interrupt operations and production, resulting in lost revenues. Missed discount opportunities mean spending more than necessary, reducing profits. The savvy use of technology helps eliminate errors and protect data integrity.
Eye on Time
Staying on or ahead of schedule is imperative in the AP department. Being on-time or early means taking advantage of discounts and avoiding late fees. Plus, timely payments help improve supplier relationships. Cloud AP automation ensures updates are made in real-time, and accessible to the financial team and management to detect and make the most of savings opportunities.
Keep the Pace
As organizations around the world adopt AP automation solutions, every business needs to keep the pace. Manual data entry takes more time and increases the risk of errors. A seemingly simple mistake, such as paying an invoice late, can have a rippling effect when late fees are assessed, vendor relations are damaged, and business interruptions occur. Today, companies must keep the pace by adopting AP automation to operate accurately and quickly.
With cloud AP automation, updates are accessible anytime and anywhere as they happen. The AP team and C-suite can work remotely to keep the AP department running smoothly. Invoices can be approved in minutes instead of days. The fast pace in real-time keeps invoice processing moving forward, reducing the risk of late payments and errors due to vendor data inaccuracies. Changes can be made remotely, so updates are never forgotten. Automating updating ensures data integrity, reducing the mistakes made when manually updating systems and data.
Mistakes to Avoid
By adopting AP automation software, the financial team can avoid common errors, such as:
- Data entry errors
- Late or failed data updates and system backups
- Contractor and employee confusion
- Errors of omission, such as the wrong vendor address
- Failure to cross-check records
- Ambiguous terms and condition
- Poor formatting
- Questionable fees
- Failure to send invoices to the right department for approval
- Lost invoices
- Inaccurate data
Learning how to use AP automation can eliminate costly mistakes associated with manual invoice processing. Adopting automation today prepares businesses for advances in technology, finance, and human relations in the future.