There’s a fundamental point to being in business – healthy locomotion. We’ll explain: if a business is constantly moving forward, it simply means it’s growing. And that’s why we as businesspeople do what we do, right? We want to grow an idea into something bigger than ourselves.
And to make that locomotion happen, a business must operate like a machine, complete with processes that keep its departments firing on all cylinders. One of the most essential of these departments is accounts payable (AP). In fact, without efficient accounts payable procedures that are automated with limited human interaction, an organization’s progress can become seriously stalled – it’s the difference between a fuel-injected machine and one powered by a coal furnace.
So, when it comes to choosing efficiency in the AP process, a modern business must embrace the power of an automated workflow to save time and money, and reduce error and fraud, or stay with its outdated manual processes, and keep shoveling that coal.
Let’s talk here around AP automation workflow, and how it may benefit a business, for smoother locomotion in the market, and thus more effective growth.
The benefits of automating accounts payable procedures
In today’s ultra-connected society, we see the benefits of automation in many aspects of modern living. In an AP automation workflow, the results of its integration are equally game-changing.
But what is AP automation?
What is AP automation?
Simply put, an AP automation workflow digitizes paper documents so that much less time needs to be spent capturing valuable money-in, money-out data from bills and invoices, by human beings, saving you money and time and reducing costly errors that can come with too much human involvement.
Is this the kind of functionality you need for your business? Contact DOKKA now.
The benefits of AP automation workflow
The main reason for many businesses not embracing the AP automation workflow revolution is a mistrust in the involvement of machine learning and artificial intelligence (AI) when it comes to a company’s vital paperwork. But there’s no need for this mistrust. Indeed, when businesses do look to integrate automation with accounting, many never look back – and here’s why:
Accounting automation can detect and prevent fraud.
The smart AI that automatically identifies invoices and bills in a business’s system, archives and catalogues those same documents. Then through cross-referencing, is able to identify discrepancies with incoming invoices, and any vendors on the system that may be illegitimate. Before any money is paid to suspect vendors, the process automatically flags this as potential fraud, for further investigation.
Prevents late payments
Late payments to vendors and suppliers can incur unnecessary penalties. In an AP automation workflow, however, this is very unlikely to happen. The system’s smart AI tracks the statuses of invoices and bills and notifies every stakeholder as deadlines for payments approach.
Prepares audit trails automatically
Healthy businesses are susceptible to audits, every now and then. It’s simply the taxman making sure everything is above-board. But just the word ‘audit’ can still strike an inkling of concern for many – especially those unprepared. An AP automation workflow uploads, documents, and catalogues a business’s financial records. This makes it easier to track invoices and bills, and share the documentation and information that needs auditing, quicker and more accurately.
Reduces human error
The accounts payable department that’s not yet automated, relies on a very significant data capturing requirement. And without AI to do it, the task falls to the accounting professionals. The unavoidable fact, though, is that humans are prone to human conditions – fatigue, distraction, misunderstanding. These can jeopardize the accuracy and correctness of recording accounts.
The smart AI in an AP automation workflow takes away the human error that can become very costly for a business.
Reduces tedium for your accounting professionals
And of course, building on the previous benefit, your accounting professionals will be spared the tedium of data capturing. They’ll be free to tackle the work that tests their strategic, creative, and advisory know-how, inevitably boosting morale.