Accounts payable is an essential aspect while determining the financial health of your business. Without a proper structure, it would be very tedious for the finance teams to analyze payouts. With the help of accounts payable automation tool, finance teams can streamline and automate their AP and gain total control of their business spends. However, some companies are not willing to embrace the digital phenomenon.
In this blog, we bust the myths about a cloud-based accounts payable automation software and help you understand how 21st-century organizations are riding the digital transformation wave.
Here are some of the myths about accounts payable automation software
#1 – Does my business need AP automation software?
The size of your organization has got nothing to do with the implementation of AP automation software. If you have a manual process of approving purchase orders, process invoices & payments, and reconciliations, then you need to think about the time consumed by your finance teams. If you process bulk payments, having a manual accounting entry is prone to human error, and a simple mistake can cause much chaos in the department.
Accounts payable automation software can automate all the repetitive tasks helping the finance teams to effectively manage and process higher volumes of invoices and payments to save costs. Finance teams will greatly benefit when they leverage accounts payable automation software to streamline their processes, save costs, avert errors, and free up staffers’ time to carry out more important tasks.
#2 – I will lose control over my accounts payable process
Automation software provides greater control and visibility on your accounts payable. When an invoice is processed, you can set up custom workflow approval according to your requirement and set up reminder notifications for any pending approvals such that invoices get processed at a much faster rate. Automate the process of matching invoices against purchase orders and GRNs. This saves time and increases the efficiency of the finance team.
Finance managers can take full control by granting user-level access and revoke them at any instant. You can monitor the progress in real-time and make data-driven decisions by gaining powerful and actionable analytics.
#3 – Accounts payable software is too expensive
A cloud-based automation software offering end-to-end accounts payable solution does not have any upfront software purchase or leasing infrastructure. It is designed to fit any business, and organizations do not have to end up paying a humongous price. There will be an upfront cost for the setup and configuration which involves configuring custom approval workflows, setting up reminder notifications, creating user-based access, software training, and support, etc. Apart from this, there will be a monthly usage fee based on the total number of users using the software.
The benefit of using a cloud-based solution is that it uses the cutting edge technology, and your data is highly secured. You can access the platform at any location from any device with an internet connection. There will be constant feature upgrades based on best practices and input from your peers, sharing the same core application platforms.
You can gain a significant return on your investment by opting for AP automation tool instead of spending on paper files, printing costs, filing cabinets, and other stationeries.
#4 – Using AP automation software is too difficult
This is probably one of the biggest concerns that are commonly found across the finance teams. With the help of automation software, you are managing accounts payable digitally, but the process remains the same. Instead of getting printouts, running for approvals, calling and disturbing your approval managers, you are following the same process through a digital software that sends out automated notifications for any pending approvals along with a digital footprint.
Automation software has an intuitive UI/UX design that can make you feel comfortable in using the tool. There will be notifications helping you to navigate throughout the entire process. When you become comfortable using the AP automation tool, you’ll be hooked into it so much so that you can’t process your AP without that!
#5 – Accounts payable software poses security risks
A traditional invoice processing system is still more prone to security risk and human error. In a manual accounts payable process, data and information get stored in physical documents. The data can mistakenly be eliminated out data from your local storage, paper files may be stolen or tampered, or even other disasters like floods or fire may cost you by losing data.
By implementing a robust AP automation tool, password protection, and encryption protocols provide multiple layers of security, and you get complete control over who has access to your accounting system.
Conclusion – The finance team can quickly improve their accounts payable efficiency by processing invoices through accounts payable automation software without worrying about any concerns. CFOs can get the much-required spending data which helps in planning the budget and achieving the financial goal by making data-driven decisions.
Which is the best accounts payable automation software?
Finly is a machine-learning powered finance management and governance suite that seamlessly automates all your accounts payable. Finance teams can streamline and optimize their vendor payments and gain critical insights on their business spending with the powerful data analytics provided. Manage all your business documents digitally and access them at any instant with an inbuilt smart search.
By implementing Finly, the benefits that CFOs experienced was of improved accounts payable, faster invoice processing time, streamlined processes, total control on budget spend, increased productivity, effective communication, and collaboration, faster invoice processing, and the minimized risks associated with routine invoice payments.