Accounts payable automation means finding a way to use technology to work smarter, so you can focus on taking your business to the next level. As a business grows from a small garage start-up to a larger office, there’s an increased need for processes and management. Automating accounts payable streamlines your processes to help your business remain efficient, weather any storm, and plan for the future. In this blog we’ll talk about simple ways to automate accounts payable with direct debit.
What does automation mean for businesses?
Studies have shown that outdated processes are causing mid-sized Aussie businesses to lose up to one-and a half days of work per staff member. Forrester Consulting showed that Australian businesses were losing $300 million by failing to adopt automated technology! For a mid-sized business with 100 people, this could be up to $2.7 million a year. Imagine what you could do with that money?
Choosing the best accounts payable automation for your needs
Businesses tend to be hesitant because of price and convenience. Think about what is eating up most of your time, money, and resources. This will give you an indication of the best automation for you. To choose the best accounts payable automation, consider:
- Pain Points: Make your automated systems directly impact your most pressing roadblocks to growth.
Think about what is taking up your time. Is it:
o Chasing up invoices?
o Segmenting your customer base?
o Processing invoices?
- Pricing: How much are you willing to pay for automation? Consider if your platform has low fees – or even better, if your system can offer a commission for every successful transaction you process.
- Convenience: If you don’t have any systems in place or have an outdated system, how simple will it be to migrate to a new system? If something needs to be changed within your system or you need extra support, where is the customer team located? If there is a time difference with customer support, this could significantly delay your operations.
- Usability: How much of the platform can you control? Is the dashboard simple to use or do the extra features complicate it? Can you access any reporting tools to find new opportunities?
Shop around! Compare a few systems and see what your key requirements are. Ask your provider if their automation software can be tailored to your specific needs.
How Does the Accounts Payable Process Work?
Accounts payable sets your business up for the future by digitising your processes to save you money, increase efficiency and decrease errors. Automated accounts payable make payments paperless and instant. When an invoice is received, it can be automatically tracked and confirmed so you don’t have to chase up payments. Automated emails and SMS can be set up to remind your customers of their payments to avoid delay. The payment schedule can also be set up to best suit the needs of your customers. Keep your accounting up to date and safeguard your business for future growth.
How Accounts Payable (AP) Automation Fixes these Problems
As the old adage says: “Time is money.” The sooner you figure out how to automate your business, you’ll be better prepared for any obstacle that arises – saving you time and money. Here are some simple benefits to accounts payable with direct debit:
- Fewer errors
- Automatic reminders so that invoices are noticed, and you don’t have to chase up payments
- Automatic processing
- More traceability and simplified reporting
- Data management and integration with accounting to discover new growth opportunities
- Built-in fraud prevention tools
- Greater efficiency to help streamline accounting
- Consistent cash flow to help plan your future activities
Some Ways to Control Accounts Payable
After you’ve decided which road to take and which benefits are non-negotiable, here are our tips to control your accounts payable:
Automate Repetitive Tasks
Playing a game of telephone can cause the message to change down the line. Without automatic systems, the approval process can be tedious and slow. As paperwork gets passed on, there are multiple points of error as it changes hands. Repetitive tasks like ordering or making payments with invoices will take long amounts of time without an automatic system. Pass the correct documents onto the relevant person by automating this this workflow.
Vendor portals make it easier for your clients to submit and track a quote, instead of following up on long email chains that get hidden within your inbox. Vendor portals allow your vendors to communicate with your team efficiently and receive automated payments. You can even set your vendors up by offering them discounts when they sign up for a contract!
Avoid Fraudulent Errors
Automated systems can decrease fraudulent money transfers, theft, or costly errors. Scheduling recurring payments, requiring multiple authorisation methods and email or SMS notifications can also give your transaction extra security layers.
This helps reduce the risks involved with making payments online. Three out of four (74%) of Australians claim their confidence in a brand’s data security influences how they spend money with that brand. Security is a top-of-mind consideration for your consumers, so it should be at the top of your mind too!
Establish Governance & Compliance
Streamline your operations to save time! When you’re running a business, it feels like you never have enough time to do anything. By establishing workflows, you can make sure paperwork goes to the right places. Make your invoices have advanced approval structures so you don’t miss anything important.
Get access to your important information with a click of a button. No more looking through piles of paper or large folders! With complete transaction details you can easily get all the completed details in one place. Get a fuller picture of your budget and spending instantly with an automatic system.
An automated payment can be checked immediately against the invoice received. Bank reconciliation is when you check the information in your records against the banking information in your account. Automatic reconciliations can cut down on mistakes and keep your skilled accountants from doing these menial admin tasks. Automating this process cuts down on time, cost and can lessen financial risk.
Business Payment Automation
Tracking income is good for business and can improve your relationship with vendors. There are decreased risks when a routine invoice payment is set up. When you know how consistently a client returns to you, you can give them better deals and your service is easier for them to use. It’s a win-win.
Try a free demo with Biz Core today
Biz Core Direct Debits can help you automate your payment collection by cutting down on chasing invoices. Our onshore Aussie team is ready to help create a tailored system for you that will best serve the needs of your company. Find out how you can get your own personal admin assistnt and see how easy it is to migrate to a system that supports you.nt and see how easy it is to migrate to a system that supports you.
How We Can Help You
Businesses Of All Kinds
Our direct debit payment solution can assist sporting clubs such as swimming schools, AFL clubs, gymnastics clubs and more.
Direct debits are taken automatically on the scheduled dates, giving you time to focus on the more important parts of your business.
Just because we’re taking care of your payments for you, doesn’t mean you’ll be kept in the dark.
Forget about the paper work today.
Make Biz Core your new payments solution.