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Accounting is often Regarded as a dull job that needs a substantial amount of tedious data entry. While accountants do perform higher level analysis that needs extensive consideration and thought, these activities can only be performed after the data entry portion of their work is completed. Among the most tedious areas of accounting entails the accounts payable procedure which involves the recording of an extensive number of invoices and investment transactions. Automating some of these procedures can provide individuals with the ability to significantly reduce the total amount of work needed and provides for the ability to do more comprehensive analysis.

Advantages of Accounts Payable Automation

The time savings and Ability to decrease the number of employees in a business (with wage savings) is the primary reason why businesses automate portions of the accounts payable process. However, this is far from the only reason why accounts payable is automated. Accounts payable automation reduces the capacity for human error and improves on the accuracy of the accounting records. In addition, it allows companies with the ability to link up with their vendors and produce more meaningful relationships with them that may lead to discounts on charges from these vendors.

Types of Automation of Accounts Payable

Companies can automate Accounts payable in many different different ways. Some Companies integrate Their purchase order procedure with accounts receivable and also have people request Purchases which are subsequently approved and automatically uploaded as accruals for a Company based on the expense date of the transaction. Then, when invoices Are obtained, the accounts payable automation solution will scan the invoice And automatically match it up into the accrual. Expenses are classified by type And posted to the organization's trial balance. In addition, choices exist for these Accounts payable automation software programs to perform analysis and analytics On payables and help a company to optimize them. More on our site accounts payable software comparison.