Managing accounts payable is a traditionally time-consuming task and prone to data capture or processing errors. It is an aspect that entrepreneurs find burdensome and can prove costly if overlooked or neglected. As a result, many business owners find themselves spending family time, such as weekends or evenings, to process and manage accounts payable. There is a solution! By automating the process, you will save both time and effort, and eliminate the risk of errors.
What does automated accounts payable mean?
Modern accounting software is designed to digitally process supplier invoices, regardless of the manner in which it is received by the business. The Xero Cloud Accounting solution delivers exactly this. By automating the accounts payable process with Xero, you can:
Here’s why automation matters:
Errors during the processing of invoices can lead to business owners missing payments, as well as over- or under payments. By utilising Xero software, the data required to process a supplier payment is digitally extracted from your invoices automatically.
When automating your accounts payable, you can set a timeline for your invoices and leave the software to do the rest – it can match invoices to purchase order numbers and send it through to the approvers. The invoice can then be approved, denied, or halted for further review. The entire process is recorded, so if something goes wrong, the business owner will know exactly what happened.
Paying your suppliers under preferential payment timelines allows you to take advantage of early settlement discounts. Your software can track early payment discounts and with the fast approval process in order, you will be able to meet these deadlines.
When utilising software to pay your suppliers, all cash transfers occur online under secure protocols. All transactions are also recorded, which is serves to prevent fraud and protect your business against processing errors.
Automated accounts payable is linked to a business’ online accounting software and this allows business owners to monitor their cash flow. All transactions are recorded, and business owners can now keep track of their spending, compare incoming and outgoing cash, and pre-empt cash flow problems before it is too late.