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Custom Approval Routing
It can take days or even weeks to get an invoice approved manually. Think about how long it can take if your business requires its AP team to obtain multiple levels of approval for all incoming invoices.
AP automation lets you create a custom approval workflow process that directs invoices to where they’re supposed to go, forwarding an approved invoice to the next approver automatically.
Custom approval workflows are also useful for approvals that are based on dollar amounts, forwarding only those invoices over a set dollar amount to the appropriate approver.
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Automated Three-Way Matching
Three-way matching is a necessity. But the reality is that it’s also a time-consuming process if you’re completing it manually.
Automation handles the entire three-way matching process, flagging invoices that need manual review while quickly sending the other invoices along for approval.
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Improved Reporting
Automating AP means that your accounts payable reporting will reflect accurate totals in real-time.
With manual approval processes, expenses are not accounted for until the invoice has been approved and entered into your accounting software application.
In the meantime, vital reports such as your cash flow statement will not reflect any of the expenses related to the invoices still sitting in someone’s in-basket.
Inaccurate data makes cash flow management much more difficult.
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Eliminate Lost and Misplaced Invoices
Paper invoices have a habit of disappearing. Whether they’re routed to the wrong department, buried under a pile of papers, or inadvertently thrown away, lost or misplaced invoices can cost you plenty.
This includes missing out on early payment discounts and being hit with late payment penalties. Consistently paying invoices late can even potentially harm a solid professional relationship with your vendors or suppliers.
Making the switch to an automated payables process eliminates both.
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Reduces Fraud and Duplicate Payments
Having automated invoice approval processes in place will also help reduce fraud and eliminate errors including duplicate payments, which are usually a result of relevant documents not being properly reviewed.
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Reduces Paper and Eliminates Data Entry
Whether you’re using QuickBooks or using a sophisticated ERP system, going paperless significantly reduces the amount of paperwork your finance department needs to deal with daily.
And by using optical character recognition (OCR) technology and artificial intelligence (AI), invoices can be scanned directly into your accounting software application, eliminating the need to manually enter them, effectively reducing human error while freeing up valuable employee time.