Accounts payable automation is a method of simplifying what your business does every day. You must collect from your customers, and you should send out invoices when customers need to make payments on new purchases.
However, it is hard for your employees to manage, write, and send these invoices by hand. You can use automation to save time, money, and avoid errors. Read more if you want to start using AP automation to your advantage.
What Is AP Automation?
AP automation is a program that generates invoices based on customer information, allows customers to make payments online, and can submit payment information into the accounting ledger. Because everything is automated, you can send alerts to your customers, print reports on daily activity, and alter the automation program at any time.
Automation is designed to save your company time. Your employees can get more work done every day, and you are not losing money at the end of the month when employees are taking overtime to get their work done.
What Does AP Automation Do?
AP automation will help generate an invoice for each customer based on the quotes you have provided. These invoices use customer information to lay out each item that is due for payment, how much those items cost, and what the total amount due is. The program can factor in sales tax, and the program can remove sales tax when you are not supposed to charge tax for certain items.
A copy of the invoice is saved in the system, and you can review the invoice at any time. The invoice is sent via email or text depending on what your customers prefer. If you need to print the invoice, you can print an envelope or mailing label to accompany the invoice. Plus, the program will print a front-facing address if you like.
The AP automation program sends alerts to customers via phone, email, or text. Every reminder has a link included that allows customers to make their payments online. The online payment portal is secure, and payments are instantly noted in the accounting program. You can customize your reminders if certain customers have not been paying, or you can make payment arrangements.
The program will note all partial payments on each account, and a new invoice will be generated that shows the new total. You can keep up with the invoices that must be created, but you are not filling them out on your own. You can avoid errors when the software does the work for you.
Can You Align Automation With Your Current Accounting Program?
The NetSuite or Quickbooks invoicing app will align with the account ledger you have created online. Information from each payment is sent directly to your accounting program. You do not need to write in new amounts, and you do not need to do the math by yourself. The two programs communicate seamlessly, and you can review payment information in real time. If you’re using the cloud then tools like QuickBooks Desktop Hosting enable real-time multi-user accounting using cloud technologies like cloud hosted desktop which make your work much easier and faster.
If you are wondering how big payments from delinquent customers are changing your financial situation, you can check the ledger on your desktop or mobile device. When the two programs do not align, you must enter all this information manually.
How Does Automation Help Your Business?
Automation helps your business save money, save time, and avoid mistakes. If you make mistakes on customer invoices, you will not collect as much money as you need. If you are quoting customers the wrong prices, they may not make payments at all. Plus, you will lose track of payment arrangements if partial payments are not notated instantly.
You can send reminders to customers using an automated system. There is no need to call, text, or email the customers yourself. You only need to respond to any questions you receive. You can send reminders at regular intervals, and the online payment portal prevents you from processing payments manually. You can streamline your office work, leave time for more projects, and make more money.
The accounts payable division of your company is responsible for bringing in money every day. However, it is difficult to collect money if you must process payments and send reminders on your own. The accounts payable automation software like High Risk Pay you use will do most of the work for you.
Additional Resource: https://fintechmerchantaccounts.com/small-business-payment-processing/