Accounts Payable Automation plays a major role in the operations of the business in many ways, and companies are only starting to realize the part AP automation plays. This job function has an impact on cash flow management, security against fraud, and vendor relationships across the company, but that is not all.
There are several benefits to improving cash flow, especially for small- to medium-sized firms. These businesses have less funding than their large-scale competitors, and this makes it critical for them to operate as efficiently and effectively as possible and gain visibility into their working capital and expenses. Smaller to mid-size companies must ascertain precisely how much they can afford to spend while working to meet upcoming obligations and how much cash they have on hand. This means they also need to seek opportunities to trim costs, as failing to do so could cause significant problems for their operations.
Avoiding issues in the cash flow cycles is the first objective for most businesses in Accounts Payable Automation, but it can be challenging. There needs to be a balance between accounts payable and accounts receivable. There also needs to be visibility and use of analytics so that forecasting can be done effectively. Yes, you can cover shortages with working capital, but there may be times when you find that you’ve also expended available credit, which can ultimately mean the end of a business.
Keep reading to learn about four key ways in which AP automation software can improve cash flow in your company.
1. Real-Time Approvals
When all stakeholders have access, they can stay up to date and informed at every step of the way, rationalizing the entire invoice process. AP automation helps you securely capture and route invoices and move them through the system efficiently with approvals on a real-time basis.
2. Decreasing Errors
When you don’t have full control over your accounts payable process, it can turn into a massive waste of money. Decentralized and disorganized ways of AP automation result in costly errors like duplicate payments and lengthy payment processing. If and when an error occurs, you would lose more money and time in reconciling the problem.
3. Increasing Cash Flow Visibility
Because the accounts payable department plays a key role in your company’s approach to cash flow management, increased visibility into the AP automation helps increase visibility into your cash flow. A well-managed, efficient AP department can utilize automation to provide critical insights into your business’s present state of cash flow.
4. Analytics and Data
Often a company has a lack of transparency as to what’s happening and how to plan appropriately. Using an advanced AP automation software solution that integrates with other financial departments, company-wide, can provide the opportunity to extract critical data and analytics for improved overall visibility. It also makes forecasting much more manageable and effortless.
If you’re looking for a quality approach, get in touch with us here at EasyAccess. EasyAccess is an AP Automation solution provider that takes an end-to-end approach to automate accounts payable.
Reach out today!