Managing business expenses, like paying bills, can often feel like a chore. Every month, a stack of supplier invoices arrives, and going through each one manually is time-consuming, prone to errors, and contributes to rising operating costs. But there’s a better way: Accounts Payable (AP) automation.
How Automation Improves Accounts Payable
AP automation with virtual card streamlines routine tasks such as invoice processing, matching, approval, payment, and reconciliation. Let’s break down the process into five simple steps:
- Invoice Receipt and Data Entry: When an invoice arrives, it’s scanned and digitally converted using Optical Character Recognition (OCR). This technology automatically enters the data into the accounting system, eliminating the need for manual entry.
- Invoice Categorization: The AP automation software then categorizes the invoice and assigns the appropriate general ledger codes.
- Three-Way Matching: The system checks the invoice against purchase orders and receipts to ensure all documents match. If discrepancies arise, they are flagged for manual review, while accurate invoices are entered into the general ledger.
- Approval Workflow: Invoices are routed to the relevant manager or department for review and approval. The workflow can be customized, allowing low-risk, low-value invoices to be automatically approved if they align with previous payments.
- Payment and Reconciliation: Once approved, the AP software handles the payment and notifies vendors of the payment status and method. It also facilitates bank reconciliation, ensuring internal records match bank statements.
Automating your accounts payable process is essential for enhancing business efficiency. It reduces manual workload, cuts costs, and improves accuracy, ultimately boosting productivity and accelerating cash flow.
Would you like to learn more, or have questions about how automation improves accounts payable or would like to see a free demo of our virtual card solution
call 888 790 3450 or email info@ revolution-paymens.com