Benefits of an Accounts Payable Flow Solution
Benefits of an Accounts Payable Flow Solution
You’re likely wasting time and money if your accounts payable (AP) process is manual or semi-automated. It’s the hard truth.
Time management and cost visibility are the lifeblood of a business’s viability and profitability in the construction industry. Although too often, we see construction businesses come and go, a critical aspect of creating longevity is creating accurate, fast-paced and reliable systems.
With thousands of companies advertising ‘automation’, it can feel like a buzzword or marketing ploy. However, to identify the actual value of automation and if the software is right for your business, there are three key steps to ensure your automation journey is worth the investment:
- Evaluate current manual processes, and identify inefficiencies and the areas where automation can improve them.
- Consider the potential return on investment and the compatibility of the software with your existing systems.
- Consult with experts in the field who can provide valuable insights on the advantages and limitations of automation for your specific business.
Let’s look at number one, what are the differences between manual or semi-automated accounts payable processes to an accounts payable flow solution?
A construction business’s manual or semi-automated accounts payable process typically involves several manual steps. Businesses require a resource to manually receive, review and enter data into accounting software, match invoices to purchase orders, obtain approvals from relevant parties, and issue payments. In contrast, semi-automated accounts payable processes may involve some use of technology, such as scanning invoices and using accounting software, but still require manual tasks like data entry, approvals, and payments.
An accounts payable flow solution automates many manual processes associated with managing and paying bills, such as data entry, invoice matching, and approval routing. For example, this software can automatically capture invoice data, match it to purchase orders, and route invoices for approval, eliminating the need for manual data entry. Additionally, this software can automate the payment process by providing the ability to make electronic payments, thus reducing the need for manual check writing.
We can see how this automation can transform business practices by comparing the process difference between manual or semi-automated AP processes and AP flow solutions.
Nevertheless, let’s dive deeper into the benefits of Accounts Payable Flow Solutions.
- Increased Efficiency: Through the automation of the many manual tasks associated with AP, such as managing and paying bills, data entry, invoice matching, and approval routing are eliminated, saving significant time and resources. This allows businesses to focus on more critical tasks and smaller business owners find they can no longer be bogged with administrative tasks, finding more time to focus on life outside the business as well.
- Better Cash Flow Management & Increased Profitability: Businesses can better manage their cash flow by automating the bill payment process, ensuring that bills are paid on time and any potential cash flow issues are identified early. With accurate data and the removal of costly mistakes, businesses can improve profitability with better decision-making.
- Improved Visibility: Businesses can better understand their financial obligations and make more informed decisions via real-time data on bills, invoices, and payments. Making it easier for businesses to identify bottlenecks and make changes to improve efficiency.
- Reduced Costs & Increased Productivity: Automating the bill payment process can reduce the costs associated with manual data entry, mailing checks, and other paper-based processes. Resources previously allocated to these manual tasks can now focus on more critical takes such as sales and customer service.
- Improved Compliance: An Accounts Payable Flow Solution can help businesses comply with financial regulations and laws by providing a transparent and auditable trail of all financial transactions.
- Increased Accuracy: Automating the bill payment process can reduce the risk of errors, such as duplicated payments or missed bills, improving the accuracy of financial data.
- Improved Employee Satisfaction & Vendor Management: Cloud-based software enables employees to access data from anywhere, allowing increased flexibility and removing frustration from arbitrary processes and roadblocks. The matching and routing of invoices are now automatically allocated to the appropriate approver streamlining processes and invoice approval times. It leads to improved payment times and real-time data on financial transactions, allowing businesses to manage their relationships with vendors better.
- Reduced Storage Costs: Records are now easily accessible online, removing paper management and the need to store these records in a location.
How can partnering with the right software consultant ensure your successful automation journey?
Partnering with a software consultant enables your business to receive expert guidance and support in the selection, implementation, and ongoing use of software solutions. Through a thorough understanding of the latest technology and industry best practices, your consultant will help you identify the most appropriate software options to meet your business needs and goals.
When reviewing software solutions, ensure you receive guidance on software features and capabilities, such as automation, reporting, and analytics.
Examining these factors enable businesses to evaluate the compatibility of different solutions with existing systems. Additionally, they can assist with the implementation process, including data migration, system integration, and user training, ensuring a smooth transition to the new system.
When comparing the benefits, it’s clear that manual or semi-automated accounts payable processes are inefficient and lack the real-time data and automation capabilities of a fully automated accounts payable process.
Accounts Payable Flow Solution ultimately leads to increased profitability and a better bottom line. In addition, by automating and streamlining the process of managing and paying bills, vendor invoices, and other financial obligations, businesses can better manage their cash flow, stay compliant with financial regulations and laws, and make more informed decisions.
To maximise the value of an Accounts Payable Flow Solution, chat with the friendly team at Thrive Technologies on 1300 868 474. The team at Thrive have over 25 years of construction industry experience and is an expert in assessing construction business needs and ensuring implementation is optimised for business success.
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