Accounts payable is a very important process for every business. Whether your company has a full department or one employee dedicated to this part of the business, many common issues can come up within the process. Thankfully, there are ways accounts payable (AP) automation can help avoid these problems. Here are four accounts payable common pitfalls and how AP automation can help you avoid them.
Inefficient Workflow
When it's not managed well, the accounts payable process can easily become inefficient and cost a business time and money. Without automation, each part of the process takes multiple steps and approvals. Using an automated program such as Sage AP Automation will give you the ability to create set workflows and access the process anywhere using the cloud. This means you can complete necessary approvals anywhere at any time.
You can also put automated checks and balances in place to make sure amounts are accurate without having a person go back and forth double-checking others' work. And rather than sending multiple emails to involved parties and creating the potential for lost messages, you can notify the relevant people automatically once a payment is processed.
Messy Invoice Management
Invoice management can be an arduous task, and the person in charge of that task might be tempted to cut corners. Many accounts payable mistakes happen when large batches of invoices are entered into accounting software together. Account numbers, payments amounts, and other information can get mixed up easily.
When invoice management is automated, you can be sure that each invoice gets the attention it needs and the information remains well-organized. Messy invoice management can also cause issues during an audit. With AP automation, you'll have the necessary paper trail for every invoice and payment right at your fingertips.
Lost Payments and Information
When invoices, payments, and reports are recorded in an AP automated program, employees will have quick access to past information when they need it without having to dig through files and hope that paperwork was organized properly. You can generate yearly reports more easily and have vendor information more readily available. This is especially helpful when a business works with a long list of vendors.
Fraudulent Payments
Automation is a great way to help streamline your accounts payable processes and avoid common mistakes, but it also helps deter fraudulent activity within the company. Without the automated checks and easy access to accounts payable information that AP automation offers, employees in certain positions can easily hide fraudulent payments. With automation, you can easily manage authorizations and check when payments go out, making it more difficult for an employee to commit fraud.
Sage AP automation offers simple solutions to accounts payable challenges, as well as a streamlined process across the board. Annoying tasks such as data entry will become a thing of the past, and employees will have the access they need even when they're not in the office. Don't let inefficient processes slow your productivity and hold your business back.
Get things moving with Sage!