1. Increased Efficiency
One of the primary advantages of AP automation is the significant boost in efficiency. Manual data entry and invoice processing are time-consuming and prone to errors. AP automation tools can handle these tasks quickly and accurately, freeing your team to focus on strategic activities that add value to the business. Imagine eliminating the drudgery of manual invoice matching, coding and approval routing – accounts payable automation makes it possible. It's also a pretty easy option to implement and train staff on, meaning disruption to your processes is minimal and staff across the business can continue as normal, whilst getting used to a few small changes in how they manage purchasing and AP.
2. Cost Savings
Manual AP processes can be costly. From the hours spent on data entry into Sage 50 or Sage 200 to the physical storage of paper invoices, the expenses add up. Automation reduces these costs by minimising manual intervention, decreasing the likelihood of errors, and eliminating the need for paper storage. Lower processing costs mean more resources can be allocated to other critical areas of your business.
3. Enhanced Accuracy
Human error is a significant risk in manual AP processes, and any errors in your AP data inevitably muddy the waters of your Sage accounting. Mistakes in data entry can lead to overpayments, missed payments, and strained vendor relationships.
Accounts payable automation ensures that data is captured accurately and consistently, reducing the risk of errors and enhancing the integrity of your financial data. Although concerns over reliability may be top of mind, a reputable software provider will be much more reliable than manual processes, especially when it comes to repetitive tasks that are easy to make small mistakes in. It also means that invoice processing doesn't need to slow down when staff coverage is reduced, resulting in accurate and consistent processes.
4. Visibility and Control at Your Fingertips
With automated AP systems, you gain real-time visibility into your daily and longer-term financial operations. This means you can monitor the status of invoices, track payments, and generate reports instantly. Such visibility is crucial for informed decision-making and efficient financial management, especially if you're managing the processes of a business that wants to scale while on Sage 50/200.
Having such high visibility of AP data that can be accessed instantly via a personalised dashboard on your computer or by pulling a report within the software actually takes the complexity out of invoice management, rather than adding to it.
5. Scalable Processes
As your business grows, so does the volume of transactions. Manual processes can become overwhelming and hinder growth, as staff simply can't keep up while maintaining accuracy… or sanity. Automated AP systems can easily handle increased transaction volumes without additional manual workload, supporting your business's scalability and growth. With cost savings achieved via AP automation, you can channel money saved on overheads, additional staff for admin work and so on, back into the areas of the business that need it most, making taking that next step a little easier.
6. Timely Payments
Paying vendors on time is crucial for maintaining good relationships, especially if you're in the hospitality or retail industry. Automated systems ensure timely and accurate payments, enhancing your reputation and fostering stronger supplier partnerships. For Sage 50/200 users, they can have payment ready invoices in their accounting software in just a few clicks - if it's in Sage, you can trust that it's been checked. Additionally, automation simplifies handling vendor inquiries or disputes, as finance teams and management staff can quickly access invoice or payment status information.
7. Better Cash Flow Management
Effective cash flow management is vital for business stability and growth. AP automation allows you to optimise payment schedules, take advantage of early payment discounts, and avoid late fees. Improved visibility into outstanding liabilities also helps in accurate cash flow forecasting and planning, enabling you to maximise the reporting possible in your Sage software, as well as to make the best decisions possible for your business moving forward.
Making the switch to automation
It's natural to be cautious about adopting new technology. However, AP automation solutions are a significant first step. They are designed to easily sync up with Sage 50 and 200, making the transition straightforward. The long-term benefits of improved efficiency, accuracy, and cost savings offset the initial investment in time and resources to set up automation.