Accounts payable automation
Ensuring that customers have the best dining experience is the top priority for many restaurant businesses. Still, the unseen financial processes of restaurants are vital to their success. Handling accounts payable is most frustrating for many restaurants. Ultimately, switching to accounts payable automation is a smart move!

The accounts payable team is responsible for paying bills on schedule and upholding a company’s financial obligations.

Accounts payable or AP is a liability on a balance sheet, as it represents payments due but not yet paid. Still, the unseen “liability” could be the burdensome manual processes that AP teams face. Accounting teams still use outdated software to do manual tasks, which increases the likelihood of late payments.

With AI and ML, accounts payable automation solutions have progressed to increase efficiency.

Are you thinking of switching to AP automation for your restaurant business? Here is your complete solution to make a wise choice!

What is Accounts Payable Automation?

Accounts payable automation refers to going from manual to digital for your data collection, validation, and payment approval.

AP automation streamlines the accounts payable operations, where efficient performance can be likely expected!

The time-consuming tasks of verifying invoices and managing suppliers are reduced with accounts payable automation tools. As a result, restaurants can respond more quickly to shifts in the market.

 

Handling Accounts Payable Presents Many Challenges

Handling Accounts Payable Presents Many Challenges

To keep your vendors happy and your working capital levels up, you must pay your invoices on time and manage your cash flow well. Using inefficient AP methods makes the already delicate balancing task much more challenging.

Among the many difficulties of manual AP processing, here are a few:

  • Management of cash and working capital with efficiency.
  • The approval process for payment is long.
  • Data entering takes a lot of time.
  • No invoices were received or saved.
  • Paying or invoicing twice.
  • Approval routing manually.
  • Human errors.
  • Compliance and document storage.
  • Cases of invoice fraud or business email compromise.

On top of increasing the burden, these difficulties might cause you to:

  • Miss payment deadlines.
  • Prevent you from being eligible for incentives for paying early.
  • Strain your relationships with partners.

Due to rising invoices, the AP team often reports working longer hours and experiencing burnout. In what ways it can be addressed efficiently? Accounts Payable Automation is your go-to solution!

Why Use Accounts Payable Automation?

Automating accounts payable processes saves time and money by improving operational efficiency.

Using automation strategies, expenses can be cut by as much as 90%, approval times can be improved by 89%, and 70% of vendor requests can be eliminated!

Let’s take a look at a few of the accounts payable automation advantages:

Boosting Efficiency

Enhance the productivity of your accounting team twofold with the help of accounts payable automation. Billing and exception handling are made much quicker with the help of AP automation. At the same time, the top automated invoice management system handles 90% of bills without human intervention. Suppose any invoices that do not meet the system’s standards are sent for human review before they are paid.

Saving Money

Streamlining processes and maximizing resources can be achieved by reducing manual chores. Firms that consistently outperform their competitors often have a lower demand for AP teams. What sets it apart? Investing money into continuous improvement, using the correct AP automation approaches with technology. Smart automation for accounts payable processing reduces operational expenses and produces substantial savings.

Early Payment Discounts

To encourage faster payments, vendors can provide incentives for early payment. To guarantee payments are made on schedule, automated payment processing gives you control. Also, restaurants can use the transparency of automation to identify payment process inefficiencies.

Minimizing Financial Risks

Accounts payable automation safeguards against accidental or fraudulent actions such as:

  • Incorrect invoicing.
  • Invoices that are duplicated or billed twice.
  • Fake invoices.
  • Duplicate invoices.
  • BEC or Business Email Compromise.

AP automation can ensure the accuracy of payment requests with secure vendor interfaces. Automated processes eliminate the possibility of tampering with invoices or illegitimate approvals.

Cutting Off Human Errors

By digitizing invoices, data input mistakes can be prevented, leading to shorter processing times. Reduce missing payments, late fees, and less effort for manual reconciliation.

Enhanced Transparency

Automating accounts payable achieves greater transparency, which also offers 100% visibility. Any authorized user can access the centralized AP data, which serves as a single source of information.

Compliance

You can be sure that your spending and payments will be followed with accounts payable automation, enabling regulatory compliance. For instance, automated processes enforce expenditure restrictions and authorized vendor regulations before payment.

Enhanced Collaboration with Vendors

Teams working on accounts payable establish reliable connections with vendors by meeting their financial obligations. Accounts payable automation accelerates the payment of invoices by streamlining procure-to-pay processes. This improves the working relationship and cash flow to vendors.

Top accounts payable automation issues

What are the Top Accounts Payable Automation Issues that Restaurants Face?

Communicating with Vendors

Vendor communication might be crucial while trying to automate their accounts payable. To achieve the perfect AP process, it is necessary to have effective contacts with suppliers or vendors.

Restaurants get invoices from suppliers, including food distributors, equipment providers, and service providers. Due to the need to send and receive actual copies of bills, their handling can be more complicated. Vendors have a few options, including email and personal delivery.

Invoice disparities are a typical issue. Those disparities can arise from inaccurate measurements, low-quality items, or incorrect pricing. Relying on vendors efficiently is the best way to fix these discrepancies.

Many companies let customers submit and monitor their bills using online portals or platforms. The restaurant industry cannot function without well-managed regulatory processes.

Monitoring Expenses

The automation of restaurant operations accounts payable relies heavily on spending monitoring. It compromises keeping close tabs on the restaurant’s spending, including a wide range of costs. Food, labor, overhead, and other expenses are just a few ways restaurants break down their total cost.

The restaurant can ensure its budget is followed by keeping track of expenses and using back-office accounting. It provides a system to address any budget overruns. Profitability analysis benefits greatly from spending tracking.

Paper Based Invoices

Regarding accounts payable automation, paper invoices are a significant headache for restaurant operations. Traditional invoices, which are often received in paper format, have the potential to cause chaos.

Entering data such as vendors’ names and invoice numbers is a laborious process that restaurant employees must endure. Paper invoices also have the potential to be misplaced or overlooked.

Paper invoices are more challenging to monitor, which makes it harder to get real-time information. It is a tedious effort to retrieve past invoices for audits or reference. Many restaurants address these issues using AP automation that enables digital invoice recording. Also, streamlining the accounts payable process improves accuracy and promotes financial efficiency.

The Volume of Invoices

Keeping track of many invoices is a big concern for restaurant operations. They often handle many invoices because of their many suppliers. Staff time is significantly consumed by data entry, verification, and approval processes. Increased demand for accounts payable duties due to a surge in invoice volume leads to higher labor expenditure.

Invoices, particularly paper forms, can be challenging to store and retrieve. Space for physical storage and efficient software for managing documents are necessities. To overcome these AP challenges, restaurants rapidly embrace accounts payable automation solutions.

To efficiently manage many invoices, these systems use features such as automated data gathering, workflow automation, etc.

What is Accounts Payable Automation Workflow?

  • Smart data capture and invoice scanning.
  • Automation of invoice matching and validation.
  • Processing surcharges and exceptions.
  • Smart coding and routing.
  • Management of vendors.
  • ERP accounts payable integration.
  • Automated purchasing.
  • Personalized reports.

Streamline Your Accounts Payable Automation with Outbooks

Are you running a restaurant in the USA? Is handling accounts payable for your business

s time-consuming? Leave all the financial hassles to Outbooks and focus on offering the best dining experience for your customers.

Choose Outbooks for accounts payable services. Get in touch with our experts today at info@outbooks.com  or call +1 386 251 5318!

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