1. Increased accuracy & reduced errors
One of the primary benefits of AP automation is the significant reduction in errors compared to manual processes. Manual data entry is prone to mistakes such as incorrect amounts, missed payments, and duplicate invoices, which can undermine client trust in their data. Automating the AP process minimises these errors, ensuring that financial data is accurate, reliable and at their finger tips.
This accuracy builds confidence in the advisory services provided by accounting practices, as clients know that the business-critical decisions they make are rooted in sound data.
2. Improved transparency on day-to-day financials
AP automation provides real-time visibility into processes that can be quite tough to track.
Clients can access up-to-date information about their accounts payable, including outstanding invoices and their value through user-friendly dashboards and personalised notifications based on role.
Providing clients with real-time access to their financial data via an easy-to-use platform fosters a sense of openness in an area of their processes that previously may have caused confusion and even stress. Those who have already automated their AP processes appreciate the ability to monitor every aspect of their financial and operational status at any time. Confidently passing this ability onto clients is a simple way to help clients feel that they are heading in the right direction, with the right accounting team by their side.
3. Confident auditing & ensured accountability
Automated AP systems maintain comprehensive audit trails, recording every action taken within the system on a PO or invoice. This includes invoice submissions, approvals, coding decisions, comments on an invoice and more. These detailed records ensure that every transaction is traceable and verifiable.
Clear audit trails provide clients with the assurance that every financial transaction is accountable and can be reviewed if necessary, whether within the business or by an external auditor. This level of transparency right down to purchasing and AP is crucial for building trust and peace of mind, as clients know that there is a clear and accessible record of all activities stored digitally and securely.
4. Improved compliance & business security
AP automation ensures compliance with financial regulations and industry standards. Automated systems are designed to adhere to compliance requirements, reducing the risk of non-compliance penalties and improving overall security. Clients can trust that their AP data, right down to the very last PO is handled securely and complies with relevant regulations for their industry. This protects economic interests as much as possible and demonstrates a practice’s dedication to upholding high standards across the board.
5. Being offered a tailored solution
Automated AP solutions offer customizable approval workflows, allowing clients to set up unique approval processes based on organisational rules and requirements. This customization ensures the approval process is transparent and meets the client’s needs.
When clients can take control of how their POs and invoices are raised, processed, and approved, it reinforces their trust in digital accounting systems. They appreciate the ability to be proactive and define their processes, knowing that their preferences are fully supported by software that makes life easier.
6. Trust in invoice payments
AP automation helps ensure that payments are made on time and accurately. The system can manage invoices so that nothing slips through the cracks, highlights who isn’t approving and why, and optimize cash flow as nothing ends up in the accounting software that isn’t ready to be paid. Slick approval workflows allow clients to take advantage of early payment discounts, which are beneficial for reducing their bottom line bit by bit.
Consistently meeting payment deadlines and managing cash flow effectively demonstrate reliability. Clients will trust practices that help them implement a software that allows them to alleviate payment stress and consistently avoid late fees.
7. Clear communication
Automated systems often include features for automatic alerts and notifications. These can inform clients of pending approvals, upcoming payment deadlines, and any discrepancies that need attention.
Proactive communication through alerts and notifications ensures that clients are always informed about their PO and invoice statuses, whilst empowering them to solve any issues faster. It also allows for accounting practices to quickly and easily identify what’s going on within a process if they need to, making client communications slicker and more informed. This openness and eased communication helps to support better working relationships for the business and all involved.
Conclusion
Implementing transparent AP automation practices is a smart move for accounting and bookkeeping practices that aim to build and maintain client trust. By enhancing accuracy, providing real-time visibility, ensuring compliance, and maintaining clear communication, AP automation demonstrates a commitment to transparency and process improvement.
By prioritising transparency through AP automation, you can differentiate your practice in the competitive accounting industry and ensure clients see you as a forward-thinking and reliable partner in their business journey.