Accounts payable automation is the simplest way to streamline your office procedures every day. Your company sends out invoices, expects a payment, and adjusts invoices for every customer. However, paper invoices are too difficult to track. You have other things that you must do during the day, and that is why you should use automation to cut down on your workload. Use the tips below to learn how AP automation can save your company time and money.
Automation Communicates With The General Ledger
NetSuite AP automation and similar programs allow you to send information seamlessly from the accounts payable department to your general ledger. The automated system creates invoices based on the information that is already in your system. The system uses a template to help create invoices, and the system calculates tax for each invoice.
The invoices look professional, and the invoices are scanned into the system so that you never lose track of your paperwork. When the invoices are sent to customers, you can set up reminders to make sure customers make payments. The system makes online payments easier, and the system will adjust invoice details based on payments that are received.
You can see a change in the general ledger as soon as a payment comes through, or you can send extra alerts to customers who have not yet paid.
AP Automation Helps Improve Cash-Flow
Your company needs cash-flow if it wants to remain operational every day. The payments that you get from customers give you extra money to work with, and the automation program shows you how much money you are collecting every week. You can print reports that show how much money you are collecting, and you can improve your collection efforts based on this information.
What Are Some Advantages Of The AP Automation System?
AP automation helps you send alerts instantly, and those alerts may be sent via text or email. You can create an automated message that is played when customers receive a phone call, and you do not need to send any alerts manually. You can schedule alerts to transmit at a certain time, and you can add notes to alerts as needed.
The AP automation system prevents errors because you do not need to enter any information manually. The invoices are built from information that is already in the system. The system adjusts invoices when payments are made, and you never need to make manual changes to the invoices. Plus, new invoices are sent with new alerts if the customer carries a balance forward.
Are There Are Any Drawbacks?
AP automation is a simple system, but you need to teach your staff to use the system. Once everyone knows how to use the program, you can work efficiently. The system may be missing the personal touch that you want to add to your invoices and customer care.
While you can send out reminders quickly, you may need to spend extra time writing notes on each invoice that are friendly. Plus, you do not get to interact with customers when they send payments. You may want to add a payment response alert that has a friendly note for each customer.
How Does AP Automation Increase Profits?
You can get more work done when automation completes so many tasks for you. Your employees have time to complete extra projects because they do not need to spend all day working on bookkeeping. Plus, the alert system keeps your customers honest. Customers know when they need to make payments, and it is much easier to make a payment online. Some customers may even be embarrassed, and sending an online payment helps avoid awkward phone calls.
You do not need to spend money on overtime so that your employees can do their work, and money flows into the office every day.
When you start using AP automation, you can improve the way you interact with customers, collect money, and produce invoices. Invoices are generated using an automated template, and you do not need to record information on your own. Plus, customers can make quick payments online. You can send reminders to your customers via the automated system, and you save time that can be used for other projects.