Effective cash flow management isn’t something businesses can overlook. If you’ve ever scrambled to cover payroll or had trouble getting payments to vendors on time, you know exactly the damage these common financial oversights cause.
The right approach to cash flow management means your business always has enough money to fund operations, that unexpected cash crunches are a thing of the past, and that you’re efficiently using the cash currently at your disposal. Doing all that allows you to consistently plan for the future with accurate cash flow projections.
Businesses of all sizes struggle with accurate cash forecasting, and a disorganized accounts payable process is often the primary culprit. The answer? Accounts payable automation.
Managing multiple vendors with different payment terms can be complex. Accounts payable automation (AP automation) injects effective automation workflows into your financial operations, giving your team the ultimate control over the flow of cash within your organization.
For many of today’s businesses, the sheer complexity of finances demands this next-generation approach. Let’s explore AP automation and uncover the top reasons for adopting this type of tech.
At G-Squared Partners, our mission is to help businesses streamline their financial operations. We leverage our partnership with Bill.com and DOCYT to offer robust accounts payable automation solutions. This optimizes your cash flow, strengthens vendor relationships, and ensures your accounting systems scale alongside your growth. Contact us today to learn more.
Accounts payable automation refers to the use of software to automate manual AP tasks. This can include:
This ultimately streamlines the flow of invoices, eliminates common errors, and ensures your team always has the clearest picture of upcoming bills. As you might imagine, this can free up essential time and resources. In fact, around 90% of workers argue that automation solutions, like AP automation, increase productivity.
AP automation technologies open up new and efficient workflows. Here are a few standout features of AP automation tools:
It should come as no surprise that manual accounts payable processes are cumbersome, complex, and time-consuming. They’re rife with inefficiencies that cost your business time and money and can even damage critical relationships.
AP automation helps streamline these essential processes so your team can focus on core responsibilities and more strategic-level initiatives. To help you better understand the value of AP automation, here are a few key reasons why every business should consider automating accounts payable processes with the right software.
Ditch the paper and manual entry and save your team hours each week. With AP automation, there’s no more chasing around invoices or deciphering handwriting. Instead, your team can focus on higher value tasks.
With automated approval processes, invoice turnaround times are significantly sped up, and bills don’t sit forgotten on desks. The right people are notified promptly, and payments are always made on time.
What’s a good business without strong relationships? Building trust and goodwill with partners starts with a strong foundation, and there’s no better foundation than streamlined payments and a reputation for professionalism.
With AP automation, these actions don’t get forgotten. Payments are made on time, every time, meaning your vendors receive funds quickly and efficiently. Some suppliers may even offer discounts for early payment discounts. Capturing these discounts, and understanding whether they’re worth it for your business, is made significantly easier with accounts payable automation platforms.
Fewer data entry mistakes mean less headache for you and your team. AP automation easily reduces these types of manual errors, especially in terms of over and underpayments. These kinds of mistakes can damage even the strongest relationships.
It’s also a matter of internal efficiency. AP automation systems can flag potential duplicate invoices or payments, preventing unnecessary cash outflow and reducing the risk of duplicate payments.
Security should be a top priority, especially if you’re in finance or other sectors like healthcare. Ensuring client and partner data is safe and secure can’t be left up to chance. Digital systems, like AP automation tools offer robust security controls that ensure confidential information remains protected.
Access to these systems is limited and there’s a clear audit log of every action users take. This can make it even harder for nefarious actors to breach your business. Most AP automation tools have built-in fraud detection and safeguards that can alert your team of potential issues before they become major ones.
If you’re working with a diverse range of partners, you know exactly the importance of flexibility. With AP automation, you can set up rules to accommodate all kinds of payments. From checks to ACH and credit cards, whatever your vendors prefer, AP automation software can accommodate.
Additionally, as your vendors and other partners evolve, your accounts payable department can meet their changing needs. Scaling your AP process won't lead to chaos when you have automation in place.
Another key reason to adopt automation in your AP processes is access to enhanced reporting. Leverage real-time insights into pending payments, cash flow projections, and spending patterns to better understand your financial operations. This can help empower strategic financial decision-making.
You can even generate reports in a matter of moments, helping with everything from audits to analyzes. No more scrambling to gather information; your data is always organized.
Ready to embrace improved cash flow forecasting? Download our free monthly cash flow plan template.
Adopting accounts payable automation can transform how your business handles invoices and payments. It can not only free up time and resources but can be the key to building and maintaining strong relationships with vendors and other partners. The benefits, from minimizing errors and improving security, are clear.
At G-Squared Partners, we’re well-equipped to help organizations like yours embrace better accounting practices, including AP automation. It can be the first step in modernizing your accounting and finance departments.
We provide businesses with a range of financial services, including outsourced bookkeeping, outsourced accounting, and even strategic financial guidance through our outsourced CFO services. Schedule a consultation today to learn more about your options.