Accounts payable and accounts receivable are vital financial tasks for any business. Comparing liabilities to expected revenue is the first step in managing cash flow. These tasks are slow and repetitive leading to errors, delays, and unhappy stakeholders if not managed well.
Outsourcing Account Payable and Receivable tasks to Expertise Accelerated can improve efficiency without adding high costs. By outsourcing invoice processing and check handling, you can lower costs, faster approvals, and get scalable support.
With over 27% of small businesses waiting for payments between £5k and £20k, it’s clear why managing AR is vital for maintaining smooth cash flow. Let’s explore why AP AR outsourcing to Expertise Accelerated is a smart choice.
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The Shift Toward Automation in Accounting and Finance
Automation and AI have completely changed the way we work. Like machines replaced factory jobs years ago, offices are now going through a big shift. AP automation is a major shift, making payments paperless and cloud-based. At this rate, it won’t be long before basic accounting tasks are fully automated. This change has been building up for years, and now it’s accelerating.
Let’s get back to 2018. A report by Sage found that 83% of businesses wanted their accountants to do more than basic bookkeeping. And this was before COVID-19 and before ChatGPT made AI mainstream! Even back then, accounting was clearly on the road to major change.
Today, accountants wear many hats: consultants, advisors, analysts, and decision-makers. If you look at AP automation today, it’s easy to see this shift happening. It’s not about automating simple tasks AP automation tackles bigger, more complex work. A report from Ardent Partners found that 41% of companies plan to automate their invoice payments. Also, 71% of AP professionals say automation is critical for the future of AP work.
With fear and hesitation around automation mostly gone, now is the best time to adopt it. Technology has matured, and competition is getting tougher in today’s economy. Businesses that invest in automation today will have an edge tomorrow and will be better prepared for a digital future.
What is Accounts Payable Automation?
AP automation uses software to handle routine AP tasks. This can be set up in different ways: you can automate part of the process or the whole thing, depending on your needs. You can automate some tasks, including:
- Receiving invoices
- Coding invoices for accounting
- Approving payments
- Making payments
- Reconciling payments with accounting records
Businesses can automate parts like approvals while keeping other tasks manual for safety. There’s flexibility based on your risk comfort. This approach is often called touchless processing because once it’s set up, the system handles payments without you having to lift a finger. AP automation is usually built into ERP systems or popular accounting software. Most modern accounting programs come with tools to make AP automation easy and secure. They even include search features that help during audits or tax season.
What AP tasks can automation handle?
When people say “everything can be automated,” it might sound vague. Here’s a clear breakdown of what you can hand over to automation:
Record Keeping
Automated invoice filing and matching saves time and reduces human mistakes.
Approvals and Coding
Invoices are auto-coded and sent for quick approval. Set up scheduled payments to control cash flow and ensure timely payments.
Fraud Detection
Automation tools detect suspicious activity and prevent fake invoices. Plus, by taking humans out of the loop, the risk of error or fraud goes way down.
Process Optimization
Automation software identifies slow points and suggests improvements for faster processing. You’ll also get clear reports about spending trends to help improve budgeting.
Customized AP Solutions
Get customized accounts payable outsource and receivable solutions to ease invoice processes. We ensure 99.97% accuracy using a mix of manual checks and automation. Our ERP integration fixes mistakes, removes duplicates, and speeds up approvals. Automation cuts errors, speeds payments, and scales with your growth. Our Invoice Manager simplifies invoice handling with drag-and-drop and no IT changes. Outsourcing cuts processing costs by 15-20%, boosts cash flow, and strengthens relationships.
The Benefits of AP Automation
Now that you know what automation can do, let’s talk about why it matters:
Cost Savings
Companies that automate AP save a lot of money. Research shows that automation cuts invoice processing costs from $8.78 to $1.77, saving 70-80%. You can reinvest these savings in experts or growth projects.
More Efficiency and Productivity
Automation speeds up the entire AP process. Your accounting team can focus on budgeting and analysis, not paperwork. Plus, faster vendor payments mean smoother operations across the business.
Fewer Errors and Better Fraud Protection
Human errors and fraud are major threats to any company’s finances. Automation minimizes risks by catching mistakes and flagging suspicious activity.
Smarter Decision-Making
Tracking AP helps manage spending and make better financial decisions.
What Is Accounts Receivable and Why Outsource It?
Accounts receivable is the money customers owe you after you deliver products or services. Managing AR well ensures you get paid on time so you can cover your expenses and grow your business. Outsourcing AR saves money because it’s cheaper than hiring a full-time team. You also get experts who know how to handle AR properly. Outsourcing provides flexibility for growth without hiring or firing. It lets you focus on running your business while experts handle payments. Outsourcing speeds payments and reduces risk by managing credit and late payments. It also uses the best technology to make payment tracking easier. Access global talent with local expertise, while keeping your data secure. Outsourcing improves cash flow and gives you more time to stay ahead of competitors.
EA handles check recording and scanning for efficient accounts receivable. Our accounting team also processes vendor bills, orders, timesheets, and more through QuickBooks. Send us the documents, and we’ll deliver accurate, timely results. We provide auditing and bank reconciliation to ensure accuracy and compliance. Your data is secure with many security layers and 24/7 support.
How to Choose the Right AP Automation Software
Choosing AP automation software isn’t a “one-size-fits-all” deal. Here’s how to pick the best one for your business:
1. Check Your Current AP Process
Talk to your accounting team. Ask them about their daily workload. Where do they spend most of their time? Where are the bottlenecks? Understanding this will help you decide which features you need most.
2. Research the Market
Once you know what you need, start searching. You can request proposals from vendors or check reviews and forums online. Learning from other businesses’ experiences can help avoid costly mistakes.
3. Make a Smart Choice
After comparing your options, sit down with your team and weigh the pros and cons. Find software that checks all your important boxes, not the cheapest ones. User reviews are important too, sometimes “cheap” software comes with hidden headaches.
Conclusion
Many small businesses can’t afford AP automation when budgets are tight. Many startups don’t even have a full-time accountant. Instead of spending on software, you can hire an outsourced Accounts Payable expert. An accountant keeps payments organized, more useful than automation early on.
As your business grows, you’ll need an accountant. Getting started now can help you grow faster. Later, the same accountant can help set up AP automation when you’re ready. Outsource AR and AP with Expertise Accelerated to keep costs low as your business grows. We offer flexible services that scale with your needs, saving you time, money, and stress.
Get in touch with an account payable company Expertise Accelerated today to ease your finance and accounting!