It’s no secret that electronically-processed transactions are revolutionary in terms of promoting efficiency and accuracy in all kinds of businesses. Almost every supermarket and online store uses an electronic payment system. But that isn’t the only technological upgrade that all businesses should adopt.
Electronic systems eliminate the need for copious amounts of paper, manual effort, and time. It’s literally a matter of simply scanning the item to determine its price and simply receiving payment for it. The system does everything else — the computation, the payment validation, the printing of the receipt, and the inventory update.
And that isn’t all electronic systems can do. Because these systems are so efficient, a business can process so many more transactions versus a business that still uses the antiquated method of manual computation and inscription.
This benefit is amplified exponentially in the case of online businesses because the process of having to fall in line in order to make a payment is bypassed. Buyers can make payments instantly and these transactions are processed just as quickly. Not only that, but from the seller’s perspective a lot of these transactions are happening simultaneously. According to this article, about 306 items are sold on Amazon every second. You do the math; or rather, let your system do the math for you.
Now, an AP (accounts payable) automation system runs on the same principle as an electronic system. Transactions are instant and no manual computation and inscription is required. The main difference here is that unlike electronic payments systems that handle single transactions, AP automation systems are meant to help users pay for recurring short-term debts. For a business, this could mean operating expenses such as bills, payroll, subscriptions, etc — anything that you pay for on a periodical basis.
The advantage here is that you only need to input values once, and the system simply processes your payments periodically; this also depends on the amount on your bill. One example of how an AP system is applied is how freelancing platforms like Upwork process client bills automatically. The client no longer has to compute how much a freelancer should be paid — the system does so automatically and even factors in transaction fees.
This system does not only benefit business owners, but it also helps consumers. Banking apps allow users to program periodical payments to specific accounts on a recurring basis. This is, in a way, an accounts payable automation system.
The key benefit of any automation system is that it saves you time, focus, and effort. These are all resources that could be put to better use in other, more productive ventures.
With this extra time, businesses can easily focus more on building relationships with their customers and their employees, which is actually the core of any business.
By prioritizing customer-merchant relationships, businesses are able to grow a community of loyal buyers who provide a reliable source of income for the company.
What’s surprising is that there are still a lot of businesses that haven’t adopted this process yet. Don’t be one of those businesses, get an AP Automation system today!