Before the calculator was made, how long do you think it took to accurately complete a balance sheet? The calculator, a device everyone has on their phone, used to not exist and the creation of this device alleviated the stress of many jobs that required rigorous arithmetic. If companies refused to buy calculators during that time, they would be left in the dust by their competition.
Accounting Tasks Made Easy
Accounts payable automation is another example of how we are evolving in the workplace to take the rigorousness out of jobs that require cross referencing documents and reading long serial numbers. Without an automated accounts payable system, not having physical access to financial documents hinders an employee’s ability to do their work with a high level of precision. In this day and age, having multiple workers in the office seems like a distant memory and many companies were negatively impacted.
One of the biggest changes we faced was having to work from home. A colleague was no longer down the hall for a clarifying question, paper trails became harder to follow, and business productivity diminished. This lack of communication between different departments led to inaccurate financial reporting. According to a survey done by Censuswide, companies that did not feel confident in their financial reporting attributed their lack in confidence to old bookkeeping practices.
Manually tracking invoices and payments can be overwhelming and could lead to human error, resulting in the company making financial decisions based upon an inaccurate portrayal of their business. The year of 2020 has made it clear that accounts payable automation is a very valuable tool that can help keep your company running smoothly. While all of us are working remote, accounts payable automation could be the answer to your problems. Here are some reasons why:
- The average clerk can process up to 5 invoices an hour compared to 30 invoices an hour with accounts payable automation! Reducing the amount of time you spend processing invoices decreases the demand of hiring clerks as your company grows. Now you can spend your time and money on other parts of your company that you feel need improving. So don’t think of an automated accounts payable system as a costly service that only alleviates the burden from one side of your business. You will extra time and resources available to you that you didn’t know existed.
- Manually processing invoices cost companies approximately $15 an invoice, but accounts payable automation brings that price down to nearly $5 an invoice. So now you are processing more invoices and purchase orders at a lower cost and a higher volume. Increasing the productivity and reducing costs through accounts payable automation will be optimizing your business’s workflow potential.
Greater Internal Control
- Implementing an automated accounts payable system reduces your risk for fraud. By using this new financial technology, you are reducing the risk for someone to be manipulating your financial information. Automation also double checks your invoices with purchase orders to ensure there has been no duplicate payments or fraudulent behavior.
- With an automated system you no longer need to worry about human processing errors. This reduction in faulty reporting will lead to greater financial accuracy and allow the leaders of your company to make the best decisions possible with the most accurate and up-to-date information available.
Increase in Cash Flow
- The time you used to speed up your payment processing has now allowed you to receive your money faster. With this result in high speed payments, your company is now in a safer position than before. During times like the pandemic, having a healthy cash flow is especially important to keeping your business running smoothly.
Make the Transition Responsibly
When companies started using calculators instead of abacuses, productivity increased, the need for more number crunchers disappeared, and accuracy improved. You could be experiencing the same kind of technological advances as these former businesses owners by taking advantage of the leap in financial technology. In the world’s current workplace environment, having access to a system that alleviates your current burden about information sharing and financial reporting accuracy is priceless. Don’t let the pandemic slow your company down and make the switch to an automated accounts payable system. Contact us today and let us be part of the automation process you want to put in place. Email us firstname.lastname@example.org