The majority of businesses are no longer in need of convincing that automating tasks generally increases organisational efficiency. We are aware that a company’s financial operations can be improved by automating processes like the accounts receivable procedure. Other advantages include fewer fake checks, a more effective way to comply with industry rules, fewer Days of Sales Outstanding (DSO), and more liquidity.
Switching over to a digital system for accounts payable and receivable seems to be a problem that businesses encounter. It can be intimidating to switch from a paper-based system to a digital one. Let’s look at some typical pitfalls to avoid when implementing AP automation.
Mistake #1: Not Giving “Must-Haves” Priority
Avoid the error of being uncertain about the essential advantages of AP automation. They caution that by omitting this stage, businesses are more likely to select software that doesn’t address the most pressing issues.
Make a list of the features that software must have in order to support the accounting and business processes. For instance, selecting an AP software that enables accountants to manage huge quantities of invoices will be most advantageous if the goal is workload management.
To ensure that the software will address the company’s problems, assess the software’s flexibility during the software vendor demonstration. Verify the software’s compatibility with all invoicing and accounting operations as well.
Mistake #2: Failing to Ensure Software Compatibility
The integration of the AP automation technology platform with the current Enterprise Resourcing Planning (ERP) Software must be discussed. The technical compatibility of the software, any ERP software constraints, and if or which upgrades are necessary for successful integration are important factors to take into account.
To ascertain: Examine how the programme automatically uploads invoices and related documents into the ERP system throughout the trial period. The organization will ultimately save money if the process goes smoothly because it will save time on human data entry. More software must be tried if it doesn’t.
Mistake #3: Not Enough Training and Not Enlisting Everyone
By openly communicating the value and benefits to important stakeholders, you can make this accounting automation transition exciting for the entire accounting team. They won’t have as many boring jobs to complete, allowing them to focus their efforts on more worthwhile projects.
It’s not ideal to continue depending on one or two people to maintain the programme operating well, therefore if at all possible, teach the entire accounting staff on the new software in case one person resigns or suffers from a medical issue.
Ideally, the accounting team will experience a morale boost. And maybe that spill over effect will extend to customers as well as the rest of the office. Get everyone on board; automating accounting is exciting.
Mistake #4: Not Thinking Ahead
This issue has two sides. Consider start-ups as an illustration. Most businesses shun formal procedures in their early stages. They are perceived as a needless restraint on inventiveness. However, this risk-taking mentality also leaves the possibility for disruption. These businesses obviously require a roadmap that will change as they do. Choose the correct road map first.
Verify again that the software will still be appropriate in five years. Does it scale? Will the software be scalable given the rate of growth? To determine whether future digitalisation requirements and the software provider’s intentions for innovation align, look at the software provider’s roadmap.
Mistake #5: Failing to Get Internal Stakeholder’s Support
Not ensuring that important company stakeholders are aware of the AP automation strategy, the advantages it will bring, and how the change will influence their work is a grave error.
Don’t tell them why this adjustment was done after the fact. They might not believe in or support your intentions and take extra steps to make the shift difficult and possibly unsuccessful.
Completing the AP Software Integration
Automated electronic payments are the last phase of full-cycle AP automation. In order to reach a higher level of data visibility and control, it is possible to complete the process by getting rid of the manual tasks associated with vendor payments, such as signing and mailing physical checks. With an integrated payment system, the process is really speedier and more frictionless.
So, keep these factors in mind when choosing the right accounts payable automation software for your company. Monite offers some of the best and most customisable options for AP software catering to your specific needs.