Accounts Payable Automation: Its past, present and future
Payment can be defined as the action or process of paying someone or something. To put this in a business perspective, accounts payable is often termed as the money or payment due by a business to a supplier. As a business expands along with its suppliers; it often becomes difficult to keep track of the payment made, due and processed to the multiple sellers. Accountants and Bookkeepers often keep tab of payments using a software and converting to Accounts Payable(AP) Automation
Earlier in the 80’s Accounts Payable was mostly handled on paper. All the invoices of the sellers were typed, printed out and hand-delivered.
With the 90’s business management software came into being. Companies started to transform their business process to be more efficient and centralized. This helped businesses reduce cost and gain control of their accounts.
Accounts payable are nowadays said to be integrated with the “shared service” model of business. Accounts payable is closely associated with processes like procurement and disbursement. Thanks to Accounts Payable (AP) automation, Global Standard in the business process has been created. Invoices of sellers are processed, approved and paid for, with much ease. Thus, accountants do not have to perform the tedious task of inputting all the relevant invoice information in a central bookkeeping system. Hence AP Automation aims at streamlining the invoicing process, reduce human error and lower the cost per invoice.
The future of AP automation holds more robust and constructed effort that will extend the capabilities of procurement, especially, creating purchase orders like punchouts, direct catalog ordering etc. With the help of AP automation, finally, data can be captured out of the invoice, which the business industry had been long awaiting. AP automation is henceforth expected to remain relevant in the foreseeable future.
AP automation impacting Data integration:
As the barriers to entry continuous to go down with each passing day, the ability to move technology to an automated environment increases. With the advanced ease of data integration, any business institutions will have better leverage in data processing. This would ultimately help in better cash forecasting, more meaningful financial planning and analysis.
With AP automation, businesses have a major profit incentive. This automation and accounts managed through Automation software reduce the involvement of a number of agents, that would otherwise be present in a paper invoice accounting system. Digitizing of the accounting system can be fortunately regarded as the normal stance of the future.