Business growth is a top goal for companies. For many, this can mean expanding the operations and gradually growing each department. However, this isn't always the case. Some departments, such as accounts, are not seen as an immediate priority.
Unfortunately, many organisations make the mistake of misunderstanding the role of the accounts department. In reality, the accounts payable process is a critical part of any business. It keeps the operations running smoothly and is especially true for growing companies facing manual payment systems issues.
Thankfully, modern solutions have introduced the concept of automation, where a payment management system digitally handles multiple transactions and ap processes. It provides better, faster, and more convenient ways to manage the pay cycle and other related functions.
Payment automation is a solution that can streamline a payment system, eliminating the need for manual processes. The system automates the payments workflow to ensure billers receive their payments quickly and conveniently. AP automation technologies include features that can improve a company's cash management, like communication touchpoints, cash flow, ACH verification, and invoice processing.
Payment automation, also known as accounts payable automation or invoice automation, uses specialised OCR technology that converts paper invoices into digital format. The system processes the information through a digital workflow that will trigger programmed actions without human intervention. In essence, AP automation solutions employ methods to process payment-related data, completing tasks without manual labour.
Payment automation offers several advantages for businesses. Let us discuss some of them.
Payment automation can improve your company's productivity and scalability by systematically securing payments. Doing so shortens the processing time of payables.
Automation can lower the risks of human errors and improve the accuracy of billing statements. Hence, bill payments are made correctly, eliminating the need to re-calculate and rectify mistakes typically experienced during manual data entry.
Payment automation solutions provide faster, more accurate, and more efficient ways to deal with your account payables. It can free up your team's time and resources and focus on other business priorities.
Moreover, an automation system spares your AP team from late payments. Siloed invoice approval processes are typical bottlenecks in the payable process. AP automation ensures timely payments and costs savings from penalty fees on missed due dates. You may even save more from early payment discounts.
| READ MORE: The True Cost of Invoice Payments |
A payment automation software provides real-time data that you need to understand your finances better. It can also give you additional information you may overlook when you handle payments manually.
Some insights or metrics that your AP team needs to monitor include vendor payment analysis, cycle times, and item and category spending.
| READ MORE: Improving Your Business with Spend Analytics |
You can have better visibility over your financial transactions when you automate your payment system. Automated payments allow you to detect any irregular activities that might happen, minimising the risks of fraud.
An automated payment system is convenient for your business and your clients. Doing so can improve supplier relationships, improves invoice processing workflows, and keep digital records of invoices and purchase orders for better tracking.
Managing your payment system is an integral part of stabilising your operations and keeping your finances in check as you grow your business. An automated payment system lets you quickly and efficiently track and process payments. Additionally, you can avoid late, failed, or duplicate payments.
Consider using Spenmo to automate your payment process. Its end-to-end payables software integrates internal spend management, automated bill payments, approval workflows, and accounting reconciliation into a unified, trackable system.
Spenmo is a sure way to save over $10,000 each month in operational costs. Book a demo today to see how Spenmo can help streamline your payment management process!