Manual data entry is one of the most time-consuming tasks that many finance teams are burdened with. It is also a task that is highly prone to issues and errors, as all it takes is a simple typo or inputting mistake to cause significant disruption down the line.
However, businesses do not need to rely on manual data entry and invoice handling anymore. The entire accounts payable (AP) process can be streamlined and strengthened with the support of AP automation–a digital solution that removes the need for manual input throughout workflows.
Want to learn more? Then, read on as we discuss the case for reducing manual data entry–and other accounts payable tasks–with the use of AP automation.
The Issues of Manual Data Entry
Manually entering data into systems is not just an inefficient use of staff time, it is also prone to potential errors.
No matter how good a finance team is, there is always the risk of a number being entered incorrectly, a decimal place mistyped or an invoice incorrectly matched. The potential for errors only increases the amount of time dedicated to manual inputting tasks, as they must be double checked promptly to reduce the odds of costly errors slipping through.
Not only that, but when businesses grow, the number of invoices that they handle will naturally increase in step with this. That puts additional strain on a finance team that is still handling tasks manually, leading to the team being easily overwhelmed if extra resourcing and manpower is not brought in as the company scales.
Businesses simply cannot demonstrate the kind of agility and scalability needed to keep up in the modern market if they are still shackled to manual AP processes.
Reducing Manual Tasks Through AP Automation
Fortunately, the need for manual data entry is already disappearing with the support of automation. AP automation platforms instantly cut out the need for staff to manually enter data, as the software automatically captures invoice data and processes it without any manual input required.
Automation takes much of the workload off the shoulders of staff, with the system able to handle the bulk of the accounts payable process from invoice receipt to payment approval and resolution. This then frees them up to focus on other tasks that are less tedious than manual data entry, as well as more value-adding for the wider business.
By removing the need for manual input, AP automation significantly streamlines processes and workflows to increase operational efficiency. The time it takes to process a single invoice drops sharply when manual tasks are automated, cutting processing and approval timelines down from weeks to just hours.
Not only does this make life easier for a business’s finance team, it also demonstrates their ability to keep up in the fast-paced modern business landscape. When invoices and payments are handled faster and more efficiently, this only encourages positive relationships with other businesses and suppliers.
Other Core Benefits of AP Automation
While removing manual data entry is one of the big motivations behind adopting AP automation, it is not the only reason to implement this technology.
As AP automation platforms centralize invoicing data into a single place this allows for much more effective oversight and improved stakeholder visibility. Individual invoices can be tracked through the system through the centralized dashboard, with every step of the process clearly visible.
Better visibility into the accounts payable process and the status of invoices, as well as any pending or delayed payments, allows businesses to manage their cash flow more effectively. Knowing exactly what is flowing through the system – and where there are potential bottlenecks – ensures that the company is not wrongfooted and can make informed, data-driven financial decisions.
Simply cutting down on the amount of manual inputting and data entry required of the finance team is a positive step for any business. But with the implementation of AP automation solutions, businesses can stand to gain even wider benefits from embracing these digital tools.
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