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5 Key Benefits to AP Automation
Published By: MPSToolbox | Thu Nov 19, 2020
Imagine if you could mirror your company’s current accounting processes and workflows, while simultaneously getting rid of paper-based inefficiencies. That’s where AP automation comes in.
When you automate your accounting processes, everyone wins. Your team will be able to:
- Streamline workflows
- Track invoices electronically
- Have access to a central repository of invoice data (which is especially useful during these unprecedented times)
Your Accounts Payable (AP) department will thrive with a new, digital process. Not only will this significantly reduce the time it takes them to complete their tasks, but it will enable them to do them from anywhere (without risking their quality of work, too).
Need more of a reason to make the leap? Here are 5 key benefits to AP automation.
1. It integrates with your existing accounting applications
Document management software integrates with popular accounting systems (QuickBooks®, Microsoft Dynamics®, etc.), so you don’t need to worry about creating duplicate work for your team. Your data will be organized and accessible.
How exactly does this work?
When invoice data is originally captured, the software will feed the information to your existing financial system—whatever that may be. Not only is this a smart, cost-effective solution, but it also allows your AP team to process invoices and distribute documents in tandem with the accounting software your team is already familiar with.
Additionally, data is synced between both programs, so there’s no need for duplicate data entry or redundant photocopying.
2. Capture business-critical data
With AP automation, business-critical data, such as invoices, get automatically sent to the document management database, eliminating the need for manual data entry. The system can extract important data that your team spends time capturing every day (customer names, PO numbers, costs, quantities, etc.)
With this integration, documents also get indexed so your AP team will be able to manage/retrieve files quickly and efficiently.
3. Three-way matches can be instant
The document management software will automatically match an incoming invoice to its respective purchase order, allowing you to reap the benefits of early-pay discounts. When a match is confirmed, the invoice is also automatically sent for approval and payment. This might seem simple enough, but it will save your AP team a lot of time (just ask them), allowing them to focus on other important tasks.
4. Automatically capture, file and deliver documents for review and approval
This processing system will automatically send critical data to the appropriate team members to review and approve—this reduces paperwork and creates a more efficient workflow, while also speeding up the process. Digital signatures can also be burnt onto purchase orders, invoice approvals, etc. Timely purchase approvals and payments are an accounting team’s best friend.
5. It is compliant with Canada Revenue mandates
This is one of the main benefits of AP automation. You Accounts Payable team will be able to:
- Digitize financial documents (making revenue and expense data more easily manageable)
- Automate AP recordkeeping
- Digitally capture front-end data (whether that be emails or paper invoices)
- Track and file AP data in case any tracking or auditing is required (document workflows actually do this automatically, so this task won’t fall on your team—it is simply an added benefit)
- Securely archive records (which is in full compliance with all IRS mandates)
We recommend this AP automation solution because we know it works. It will help your team access data more quickly and efficiently, save your company time and resources and allow you to process work easily and within the correct IRS guidelines.
Contact us today for more information.
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