A game-changer for construction companies of all sizes, accounts payable automation has emerged as a pioneer for sustained revenue growth through streamlining operations.
With the ability to simplify invoice processing, reduce manual data entry, and increase efficiency – automating accounts payable processes provides immense benefits to construction companies in particular.
For enterprises that are looking to optimize their financial operations, automation streamlines the financial operations of the business, saves time and money, reduces errors, and increases productivity.
In this article, we will discuss the benefits of implementing accounts payable automation and why it is vital for construction companies in particular – as well as the optimal method to go about its implementation.
What Automating Accounts Payable Can Do for Your Business
- Streamline Invoice Processing
Construction companies typically deal with a high volume of invoices, including those for materials, equipment, and subcontractors. With account payable automation, these invoices are processed and paid quickly and efficiently. This results in reduced time spent on manual data entry and approval processes, freeing up staff time to focus on other critical tasks.
- Improved Cost Control
Construction companies need to keep a close eye on costs, as even small increases can impact the overall profitability of a project.
Account payable automation helps to improve cost control by providing real-time visibility into expenses and invoice status. This makes it easier to manage budgets and identify potential cost-saving opportunities.
- Increased Accuracy
Manual data entry is prone to errors, which can lead to incorrect payments and lost revenue. Account payable automation helps to eliminate these errors by automating data entry and validation processes. This results in fewer payment errors and greater accuracy in record-keeping. To gain further insights about the complexities of data entry in high pressure environments read – Data Entry/AP improvements in high pressure environments
- Improved Cash Flow Management
Construction projects require a significant upfront investment, and managing cash flow is crucial to ensuring the success of the project.
Account payable automation aids the optimization of cash flow by providing real-time visibility into invoice and payment status.
This makes it easier to manage cash flow and ensure that funds are available to pay suppliers and subcontractors on time.
- Better Supplier Relations:
Construction companies rely on their suppliers and subcontractors to deliver materials and services on time. Late payments can damage these relationships, leading to delays and increased costs.
Account payable automation helps to improve supplier relations by providing faster invoice processing and payments. This creates a more efficient and timely payment process, improving supplier relationships and reducing the risk of project delays.
- Time Savings:
Construction companies deal with a high volume of invoices, and manually processing them can be a time-consuming task.
Automated accounts payable processes eliminate the need for manual data entry and approval processes, freeing up staff time to focus on other critical tasks.
This results in faster invoice processing and payment, reducing the time it takes to manage accounts payable.
- Increased Visibility:
Automated accounts payable processes provide real-time visibility into invoice and payment status. This makes it easier for the organization to manage budgets, identify potential cost-saving opportunities, and ensure that funds are available to pay suppliers and subcontractors on time.
- Improved Compliance:
Construction companies need to comply with various regulations related to accounting and finance. Automated accounts payable processes help ensure compliance with these regulations by providing accurate and timely record-keeping. To learn all the benefits businesses glean from automating accounts payable read – How accounts payable automation propels your business forward
Best Practices to Follow For Successful Implementation
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Here are some steps that construction companies take to optimize the benefits of implementing accounts payable automation:
- Evaluate current processes:
Start by evaluating the current accounts payable process and identifying pain points and inefficiencies that are addressed with automation. This helps organizations determine what areas need improvement and what solutions can be implemented.
- Choose an automation solution:
There are several accounts payable automation solutions available, including cloud-based software and digital payment platforms. Consider the features and benefits of each solution and choose the one that best fits the needs and budget of the construction company.
- Set up the system:
Once a solution has been chosen, set up the system and integrate it with existing accounting software and payment platforms. This may involve setting up payment workflows, automating invoice processing, and configuring payment options.
- Train staff:
Provide training to staff members who will be using the accounts payable automation system. This leads to better understanding of how to use the new system and maximizes its benefits.
- Test the system:
Test the new system with a small batch of invoices to ensure that it works as intended and to identify any issues that need to be addressed.
- Roll out the system:
Once the system has been tested and is working as intended, roll it out to the entire accounts payable team and other stakeholders.
- Monitor and improve:
Monitor the accounts payable process and identify areas for improvement. Continuously refine the system to increase its benefits and ensure that it meets the needs of the construction company.
Implementing accounts payable automation can take time and effort, but the benefits it brings to organizations particularly, construction companies, makes it well worth the investment. Although, to fully avail these benefits it is crucial that best practices be followed, to gain further insights into this read – 10 Accounts Payable Automation Best Practices
It is an indispensable asset for construction companies that are looking to optimize their financial operations.
By streamlining invoice processing, improving cost control, increasing accuracy, improving cash flow management, and enhancing supplier relations – account payable automation is a crucial tool for construction companies to stay competitive and achieve greater profitability.
Pave the Road to Success
To keep in stride with today’s fast-paced business world, it is essential to avail yourself of every edge you can get. Automating accounts payable processes frees up employees to focus on activities that generate value for the company. At Being Humans, our seasoned team of professionals and thought leadership are well-versed in the technical language of both AI and finance. We are constantly evolving and innovating our products to provide our clients with the ultimate solutions to complex problems.
We are differentiated from our competitors in the construction industry with the quality of our pay application automation. Our sophisticated AI has the ability to extract the data from a pay application and successfully get that into a customer’s accounting system without any data entry. With this feature you’re offered a drawdown on a contract for work that has been put into place during a specific period. Our advanced AI ensures a precise readability of 99.99% – virtually eliminating the risk of a faulty data entry.
With our premium AP automation app, you focus on value generation to take your business to new heights, while we handle the complex, mundane task of dealing with all the paperwork – with the utmost precession.
Moreover, our tailored software system is programmed to meet your organization’s specific needs and workflows and by constantly evolving to take in the latest changes in AI, as well as accounting standards, we ensure that our software integrates seamlessly with your existing accounting and ERP systems to avoid data silos and potential errors. We also offer comprehensive customer support, including onboarding and ongoing technical support. Our tutorials demonstrate the simplicity of our app and can be used as a training mechanism for the staff.
We follow best practices in data security and compliance with regulations like GDPR, CCPA, etc. With a decade of experience of Being Humans’ founders and demonstration of excellence, we have made significant impacts on our clients’ bottom lines.
At Being Humans, we confidently position ourselves as the best choice for businesses seeking accounts payable automation software.