How does Accounts Payable automation work?
Finance teams have to be on their toes always as they have to account for the volume of money coming in and going out everyday. This involves checking each and every transaction, getting approvals from authorities and sending payment cheques.
This is exactly why dealing with Accounts Payable every month can be stressful, leading to wastage of time and mental energy.
How to reduce the hassle faced by accounting and finance teams when they execute this process every month?
By welcoming Accounts Payable automation into the business!
Automating Accounts Payable can help your finance teams cut down on time and costs and reduce fraud. Find out how to set up this process!
Step 1: Sorting out the basics!
Before getting started, choose the vendors for whom you will be automating this process and convert your invoices into a standard digital format such as PDF or XML so that the software can easily scan and input the required data.
AccountIfi can seamlessly integrate with your existing accounting workflow!
Step 2: Classifying data without any error!
Once the invoices are scanned using the OCR (Optical Character Recognition) technology, data such as vendor’s name, date and amount of purchase are entered in the appropriate fields. This is where maximum human error is bound to occur.
AccountIfi uses OCR technology to scan invoices and input the invoice data in the right fields without any error in the process.
Step 3: Matching of data and flagging errors
In the case of supplier invoices, the finance team cannot go through every invoice and match it with the purchase order. This leaves room for manipulation of amounts in the invoices. But, the AP automation software will match the invoice automatically with the purchase order and flag any discrepancies in the amount. This helps to reduce errors/fraud/manipulation.
AccountIfi does three-way matching, which compares the purchase order, the goods receipt and the supplier’s invoice. Errors, if any, are flagged at this stage.
Step 4: Re-routing for approvals
Once everything is in place, the invoices will be sent for approval to the required officials and upon approval, they will be scheduled for payments. This process involves setting up the hierarchy of approval in the beginning.
Want to experience a stress-free and smooth payment cycle? Get in touch with us at firstname.lastname@example.org to see how we can help you simplify your Accounts Payable process!