Bleeding cash means losing money in a business over a period of time. Most businesses bleed cash, especially in the initial set-up days; but bleeding cash in the accounts payable process on an ongoing basis is something different. By Automating the invoice process, challenges associated with

Accounts payable is an important activity in a business organization. The success of a business organization in the long term depends as much on paying its debts in a timely manner as on collecting revenue.

In many organizations, accounts payable is still a manual process, which can create a huge number of issues like:

· Possibility of manual errors.
· Payment mistakes, double entry and double payment.
· Delayed payment may also lead to payment of interest and penalty.
· Late payments can cause reputation issues.
· Suspension of business with the affected providers.
· Suppliers causing stock-outs serious enough to halt production in some cases.

Today Every CFO, is thinking of Digitization and In the Accounts Payable

The benefits of automating accounts payable process

The benefits of automating accounts payable process and integrating it with ERP are huge. Some of the benefits include:

1. Adherence to compliance norm: Companies get full access to detailed invoice processing history at any time for auditing.

2. Reduced processing time: Enables the organization to scan through multiple invoices in a short period of time. It also enables finance heads to monitor and streamline approvals. This significantly reduces manual operations and reduces processing time for invoices by a significant margin. Faster invoice approvals are now possible, as errors are detected and corrected before submission and invoice data is emailed to the inbox of the approver. Escalations can also be automatically routed to higher authorities, if the time taken for processing an invoice crosses a defined threshold.

3. Improved cash management: Payment discounts from suppliers can make a big difference to the cash flow of any company. By automating the accounts payable process, organizations can succeed in earning early payment discounts from suppliers, by adhering strictly to required timelines. This can also help in eliminating any possibility of penalties.

4. Improved vendor relations: As invoice processing is done faster and payments are made quickly, it can lead to a significant improvement in vendor relations. Suppliers can also track invoice and payment status through an online network. Payments are also released on time and discounts can be availed for early payments.

Automation of the accounts payable process can significantly reduce paperwork and enable accounting staff to engage themselves in more strategic higher value activities. Working capital management can also be improved due to better visibility and improved efficiencies. In an era of increased digitization, it is imperative that organizations take active steps to automate the accounts payable process, as it is the foundation of your financial forecasting process.

If you want to avail the services of a trusted and experienced partner for automating your accounts payable process, please feel free to write in to us at [email protected]

About PEOL : PEOL Technologies has been helping customers with Digital Transformations and SAP implementations for over a decade. With over 11 years of experience in helping companies leverage the power of SAP - ERP for their digital transformation initiatives, PEOL understands the business functions intimately and also recognizes the gaps in traditional ERP products in the accounts payable process.

Under our PEOL Digisol umbrella, we have launched our product ELIPO in the Accounts Payable space to help digitize end to end processing of vendor invoices through a digital cockpit, workflows and ERP integration. This will enable businesses to meet payment deadlines, negotiate better commercial terms with suppliers, and reduce the time it takes to process all the incoming invoices