In a small company it’s possible for an owner to receive, organize and pay invoices while still attending to all the other tasks required by the business. However, a manual accounts payable department, although scalable to a certain extent, will become inefficient and unviable when there are hundreds or thousands of invoices to be paid every month. Luckily accounting is not the only industry where automation has made large inroads. Here’s a list of four benefits of electronic accounts payable systems.
1. Reduced Paperwork
Digitizing the accounts payable process can eliminate several problematic situations. Paper dependent systems tend to limit document access to a single worker at any one time and are prone to filing mistakes or outright loss. The fact that paper documentation needs to be physically moved and stored costs both money and manpower. Electronic systems reduce the amount paperwork necessary saving time, money and space.
2. Reduced Repetitive Tasks
Electronic accounts payable systems can eliminate the need for error prone, repetitive tasks such as data entry, manual invoice validation and approval, check writing and envelope stuffing. By relying on automated systems, mundane tasks that require long stretches of concentrated effort can be fulfilled entirely by computer software. Staff who were relegated to monotonous roles can be redeployed to more stimulating work.
3. Reduced Costs
By allowing automated systems to speed up invoice processing, a company can reduce costs by taking advantage of early payment discounts. Penalties and fees associated with late payments can also be avoided. Electronic accounts payable systems can quickly match invoices to purchase orders, eliminate duplicate billings, improve approval times and process invoices based on due dates rather than date of reception to maximize discounts while minimizing late charges.
4. Improved Cash Flow Visibility
Compared to a paper based system, electronically stored documents are more quickly and easily accessed allowing a more accurate overview of company spending. This visibility supports improved cash flow management, more precise financial statements and easier auditing capacities.
The Emburse Expense Management System
If you would like to learn more about the benefits of electronic accounts payable systems, get in touch with Emburse for a free demo today.