Your supplier management is one of the most difficult tasks that make you go nuts sometimes. From finding the right supplier and managing the quality supplies to making sure the payment method is fair and easy, there is a lot on your shoulders. You manage a lot of things that you should actually not be doing. Who will do it then?
No, this time you do not have to find a trustworthy and highly skilled manager because automated account payables will do the work in a highly efficient and error-free way.
What is Account Payable Automation?
Have you ever heard of automated supplier management? If not, it is a digital system where you place an order and multiple suppliers (meeting your demands and budget) offer you, their goods. You deal with them all digitally and they provide you with the supplies and the process is being done automatically with little intervention from you. In short, your role during all this process is only to supervise if things are going right. There are many validators at every step who make sure no problem on the part of the supplier or consumer occurs.
AP automation is the next level of automated supplier management. It automates invoice generation, code matching, and digitalizing the tasks that otherwise would have been done on paper. Not only that it makes the process more transparent, but also super easy, quick, efficient, and free of human errors.
Moreover, it links the process with your office software so that it works in coordination with your system and as a part of it. It is not just like digitalizing the process of the invoice of your accounts payables but automating it with artificial intelligence. All the data and information remain crystal clear and you don’t have to worry about it at all.
Here is a brief description of how it works.
The Working of Automated Account Payables
It works by transforming the invoices into one standard form to keep them more official, easy to understand, and authentic. So, when the invoice is provided by the supplier, the first thing that this system does is to transform it into a digital format.
The system has artificial intelligence and it learns from the previous processes. For example, if the same supplier has been a part of a process before, or if they have their data filled in for supplying goods, the system would learn through a machine learning process. Now, when it would extract the data about that supplier and all the supplies on its own to make the process transparent and without mistakes.
Also, it would apply the coding to the products automatically. Furthermore, it matches the invoice with the purchase order and delivers it to the buyer. Sometimes, it can be complicated to understand but the software has enough intelligence to make it happen.
The automated account payable system involves the respective approver at different steps to finalize the invoice and the delegation of authority is asked to deliver the invoice to the right person.
You will receive emails and notifications to be intimated immediately about your payment. This whole process takes minimal time and no errors. In case some unusual error or problem occurs, the relevant authorities are called in immediately.
To highlight the benefits that are already discussed above, here are a few unavoidable ones.
It would save you the time that you can use in better and more productive tasks in your business. Second, no matter how efficient your team is, there is always room for error. AP automation removes that risk completely. Also, it remains transparent and the dealings between a buyer and a supplier are perfectly controlled.