Managing your accounts payable digitally allows you to record, view quickly, and review the innermost workings of your business by avoiding you the woes of managing paper-conversations and related storage.
If you are still using the age-old method of maintaining receipts to track your business payments, then you may have to rethink now. Paper-based records and other relevant documents can easily be misplaced, stolen, or gets tampered. They may even get accidentally destroyed through coffee spills.
In this blog, we are discussing how digital bookkeeping is going to transform the way we maintain our records.
Let’s dive in.
Managing your accounts payable digitally helps you in storing your records of financial transactions online. With the help of an automation software, you can retrieve any data and streamline your accounts payable. It is very efficient and cost-effective.
Paperless Records – Any paper-based storage can fade-out or gets crumpled over time. Instead of maintaining huge stacks of paper records, a digital platform can store all your records in one single place.
Faster Processing Time – Sending a paper-based purchase orders consumes a lot of time & money. By processing purchase orders, you can email them as they have a higher chance of getting viewed. Also, there will be a trail recorded for each purchase orders exchanged through emails. The turnaround time for processing purchase orders, invoices can be done instantaneously.
Automated Payouts – You can do payouts to your vendors through NEFT, IMPS & RTGS by linking your bank accounts. Each banking transactions gets automatically recorded in real-time and keeps your accounting system updated so that there is no need to enter the data manually.
Audit Ready – Auditors will have a tough time to identify each expense, and it will be tough for them to go search for information through a stack of papers. With digital records, you can retrieve data using a simple built-in search feature.
Financial Reporting: Get a comprehensive financial report in minutes and stay on top of your organization. By using a graphical representation, you can gauge your business spending and plan your growth accordingly
Quick month-end closures – On-time book closure allows you to look at your organizational financial health. This results in efficiencies and, in turn, cost savings. It also frees up the accounting department to devote more time to providing management with better information.
Which is the best software to manage accounts payable digitally?
Finly is a machine-learning powered finance automation software helping businesses by gaining complete control & visibility in streamlining and automating their accounts payable.
Some of the significant benefits of Finly are:
Automated Accounting – The finance automation software automatically reconciles your accounts payable, with your existing accounting software so that the error-prone manual process of entering data gets eliminated and in turn savings cost including the time of the finance teams.
Managing Business Docs – With the automation software, the finance team can also manage other documents like purchase orders, GRN, delivery challans, etc. The historical records can be retrieved at any instant with a single click of a button.
Payment Automation – You can split payments and make vendor payouts, manage all your marketplace payouts to the vendor’s bank account, and much more. Notify your vendors about the payments through automated notifications via SMS & Emails.
Avoid Fraudulent Errors: With an automated accounts payable system, you can minimize fraudulent money transfers, theft, or costly errors. Add additional security layers by scheduling a one-time set up of recurring payments, requiring more than one person to authorize a payment, email or SMS notifications for every payment made, etc. will help reduce the risk factor involved in payments.
Three-Way Matching: Automate the process of matching money advance, expense report & settlements. Any purchase order raised through the system, it is automatically mapped against the invoice received. Multiple other data points such as the delivery of the product, payments & E-Way Bill are auto-mapped against the purchase order
Efficient Teams – With most of the monotonous & repetitive tasks getting automated, finance teams can spend their productive time in making data-driven decisions and transforming into a business intelligence department.