Ten Benefits of Accounts Payable Software
Cash management is critical to any small business, and the accounts payable function in your organization is a key component of any small business operation. A poor accounts payable process can damage reputations with vendors, consume unnecessary amounts of time, and even be susceptible to fraud. As your business grows and the number of vendors you pay increases, the workload for current staff also increases. Often, hiring additional personnel to handle paying bills is the go-to answer for this increase in workload. But is that the best choice?
If these issues sound familiar, you should consider leveraging the power of software automation. Through working with countless small businesses and organizations, we’ve determined that Bill.com is a great software provider to help small businesses with their accounts payable process. Bill.com helps our clients simplify bill paying duties, enhance internal controls, and save time in a cost-efficient platform while eliminating many of the burdens associated with manual accounts payable processes.
Here’s a closer look at some of the benefits this type of software can provide:
- Reduce the Risk of Fraud
Bill.com segregates duties between processing, approving, and paying. The digital shift from paper to the cloud removes the need to keep blank check stock on your premises, thereby reducing the risk of check theft. Also, sending digital payments through a software like Bill.com keeps your bank account numbers private so vendors and other third parties can’t access that information and potentially misuse it.
- Eliminate Paper Invoices
Invoice images are securely stored in compliant archives that are regularly backed up and safe from fire, flooding, and theft. Gone are the days when important documents get buried in filing cabinets and lost in an ever-growing pile of unnecessary and unwanted clutter.
- Replace 50 Percent of Manual Keying
Through optical character recognition technology, data from an invoice is extracted and then converted into a machine-readable form to easily capture important information from the invoice, leaving remaining items to simply review and edit, which can help speed up invoice entry.
- Avoid Duplicate Invoice Entry
Ever made duplicate payments to a vendor? It can be quite the hassle. Thankfully, Bill.com will recognize a duplicate invoice number from the same vendor so there’s no need to manually review invoices, which can save you time and money.
- Remove the Need for Manual Invoice Approval
Especially as cloud accounting becomes commonplace and the demand for teleworking grows, trips to the manager’s office for payable approval are no longer required. As you’d expect, accounts payable software has built-in approval policy workflows that can be managed from a mobile device, tablet, or computer to align with this evolving need.
- Eliminate Invoice Filing, Check Printing, & Signing
All the steps in the accounts payable life cycle become digital so invoices are digitally filed by vendors, payments are sent via Bill.com and attached to the invoice, and cleared check images are attached to the invoices/payments. Isn’t technology convenient?
- Integration with General Ledger Software
Bill.com also integrates with both QuickBooks Online (QBO) and Sage Intacct—read our thoughts on QBO and Sage Intacct. Connecting Bill.com with your general ledger software avoids requiring the double entry of bills from one system to another. Bill.com automatically synchronizes with QBO or Sage Intacct daily, or you can manually sync the software as many times as you need throughout the day.
- No More Paper Checks
In addition to the workflow automation, Bill.com eliminates the need for paper checks altogether. Imagine regaining the time and resources that have previously been spent on printing, signing, stamping, mailing, and reconciling paper checks. Bill.com submits payments securely through ACH or mails a paper check directly to the vendor.
- Increased Efficiency & Organization
Another advantage of automation is the clear organization and efficiency of better financial records. Consider the time savings gained when you can:
- Locate invoice images online versus in a filing cabinet or warehouse
- Verify manager approval stamps digitally versus tracking down a manager in person
- Receive vendor invoices digitally via a Bill.com-dedicated inbox versus in the mail, which still requires a person to handle opening and distribution
- Create a to-do list with automated reminders to approve and/or pay bills versus an employee asking a manager to approve an invoice or a vendor calling and requesting you to pay a past-due bill
- Better Vendor Relationships
Using this type of software can save vendors time, allow them to get paid faster, reduce the burden on their staff, and remove the risk of someone stealing payments or manual checks made out to their business. In short, accounts payable software like Bill.com can save time, eliminate paper, and produce higher quality financial records at a cost-efficient price point.
Reach out to a BKD Trusted Advisor™ or use the Contact Us form below for more information on how we work with our clients to onboard and operate the accounts payable function by leveraging automation. Interested in related services?
Check out our outsourced accounting services to learn about what we can do for you.