It’s every company’s nightmare: as soon as the deadlines for payments and taxes come in, their accounting and finance department works overtime, manually checking and double-checking – and in some cases, triple – or quadruple-checking – their invoices and tax information to make sure that payments are made correctly, and that no single cent is misappropriated.
Although it’s understandable that certain processes are in place to prevent fraud, and avoid costing the business unnecessary money, it can be pretty redundant and time-consuming as well. Implementing an automated accounts payable workflow is an efficient solution to your accounting headaches. Here are a few reasons why your business should adopt this process:
Increased production and efficiency
An automated accounts payable workflow allows your staff to do more of their tasks and responsibilities in half the time. For example, most companies require their staff to verify the tax identification numbers indicated on every invoice they receive; with AP workflow automation, the system can automatically verify the tax information for you.
More accurate results
Manual accounting and checking is very susceptible to human error. The automation of AP workflow allows you to avoid making mistakes caused by human error that could hurt your business big time. With accounts payable automation, systems that have built-in error checks can help your business reduce the number of – or completely eliminate – errors in your accounts payable workflow.
Reduced environmental impact
The accounting and finance department is one of the areas in a business that can contribute to its carbon footprint. From invoices, to receipts, even email printouts and faxes – these all involve the consumption of paper products. Not only that, but the processing and the creation of these paper trails also involve ink, staples, paper clips, file folders, and a lot of other accessories that paper documents require. Switching to a digital system using automated accounts payable workflow software allows your company to not only decrease costs in the office, but also reduce its impact on the environment.
Better data storage and access
Try to think of a future for your business where all the information you need is readily available whenever and wherever it needs to be accessed. With cloud storage, this future can be real for your company. Information like invoice data, payee and payer details, tax information, as well as the audit trail can be accessed from the cloud. Another added benefit to cloud storage? Your team will never have to worry about lost files again, since you can also opt to store backups on a different cloud server.
Seamless integration with other platforms
It’s common for most accounting and finance departments to encounter invoices, reports, and other paperwork that have missing information. With automated accounts payable workflows, systems can now communicate and complement each other. It also makes it easier for you to manage and increase visibility and accountability, especially in certain scenarios where the audit trail is very important.
All these things lead to a multitude of benefits, some of which include more accurate financial reports, better budget forecasts, and of course, an improved bottom line.