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How can SMBs  Embrace AP Automation?

Besides the obvious, there are some novel ways in which small and medium-sized businesses are embracing AP automation. It can integrate at business process points in the most innovative fashion and disrupt traditional processes.

Here are a few “outside-of-the-box” ways to use this technology:

Build Your Master List

The supplier portal is a great way to quickly build your vendor list without having to lift a finger. The system tabulates the data for you. Then, you can create a vendor master file with data supplied directly from the suppliers themselves.

Tax Reports

W-9 and other tax information collected can be used to generate periodic tax compliance reports. If your business is at a high risk for audits, this is an innovative way to use AP software to ensure you’re never caught off guard or in non-compliance.

Screening Vendors

AP automation means you no longer have to rely on human eyes to catch fraud. The system will use thousands of online validation rules and databases to screen outside vendors against things like:

• Regulations
• Blacklists
• Tax databases

Routine Tasks

Although this certainly isn’t novel, using robotic process automation to eliminate routine accounting tasks gets easier with time.

That’s because, as you use your system, machine learning and artificial intelligence start to understand more complex patterns. Ultimately, the platform will perform routine payables tasks exactly to your liking.

Globalization

One of the most innovative ways in which businesses use AP automation is to expand into global territory. Just 15 years ago, doing international business for a small company seemed like a costly pipe dream.

New AP tools, however, make this a possibility for a business of any size. You can add functionality and payment choices in hundreds of local currencies.

Additional Uses Include:

• Automatic payment reconciliation
• Screening for duplicate payments and invoices
• Improving real-time access to information for all parties
• Mass payments to save on processing costs
• Electronic purchase order creation

Conclusion

Kickstarting your AP automation journey starts with understanding exactly how modern accounts payable operations function and how those tasks can be automated.

What does digitizing your workflow look like today? Are there systems that need to be updated or accommodated with new technology?

How much is your budget? This will always come into play when procuring new equipment. Some AP automation platforms charge high upfront costs for the entire license. Others will charge a monthly subscription fee. A lot of that has to do with where your information is stored. It’s more costly to silo it on-site than to house it in the cloud.

Is your business mobile? In this new era, purchasing software with mobile functionality is critical to keeping business moving. As society evolves to a more remote-based work environment, the tech solutions you procure must follow suit. Therefore, looking at something that is cloud-based and allows for multiple users is a good match for the current economy.

Ultimately, the AP solution you choose will best align with needs if you do your research. This guide is a good start to understanding exactly what this type of software can do and how it can suit your business best. Ask the right questions now, and you’ll find the perfect platform that will leverage AP operations and grow with your business.

Source: https://nanonets.com/blog/ap-automation-accounts-payable-automation/