Manufacturing industries are one of the biggest industries that have a large labor force, machines, and tools. Since production is the driving force of any industry, manufacturing companies hold a prominent role in the business world. Both large-scale and low-scale manufacturing companies ensure that goods are mass-produced to streamline consumer demand while achieving the core assets of the company. As a result, there is a high flow of cash moving in and out of the company that needs to be properly invoiced.
Why is AP Automation important in the Manufacturing industry?
AP automation is one of the vital digital trends that revolutionized the business world. AP automation seeks to eliminate manual data entry processes, reduce data duplication, minimize time consumption, etc.
As the biggest service providers in the supply chain industry, the manufacturing companies need to curb the risks that occur in the supply chain due to delayed production and payments while mitigating additional costs. Therefore, manufacturing companies need flexible software that eases the data entry and invoice processes. Here’s where AP automation comes to the scene. Automating the Accounts Payable process of the manufacturing industry can help you reduce additional costs spent on paperwork, data correction, data retrieval, and repetitive work.
However, people are yet to know about the potential advantages that manufacturing companies gain by automating their Accounts Payable processes. Here’s why AP automation is the best tech solution for the manufacturing industry.
1. Easy Integration to the ERP System
One of the significant ways in which AP automation solutions can regulate your cash flow is that they can be easily integrated into the ERP system with minimal effort. The swift implementation process of the software makes sure that there is no need to re-enter data into the main system, thus, saving time and money to re-enter data. Accounts Payable solutions can integrate with functioning financial databases while adapting to the resources and planning networks.
With over hundreds of transactions taking place within the manufacturing industry it is important to maintain the data entry processes properly. AP automation guarantees that the financial flow of the company is under control. Generally, AP automation solutions are built using robotic and AI technology which usually comply with the existing systems and make the operation process easier. By using Accounts Payable automation solutions manufacturing companies don’t have to worry about spending money to swap data across databases. Subsequently, it helps business owners to increase the revenues of the company.
2. Streamline Processes
The manufacturing industry must make sure that there is a steady flow of production and maintain the consistency of the supply chain. A single friction in the database process can halt the productivity of the company. Manufacturing companies can now automate their Accounts Payable process so that it streamlines the invoice processing and control the cash flow. As soon as the company receives invoices, AP automation solutions can extract them into the database and handle the invoice approvals and payments.
AP automation solutions are also capable of matching invoices, coding invoices, and approval processes which assert the productivity of the company. By simplifying the task of invoice processing, AP automation helps to track the transactions and balance the finances which in return could increase your revenue, plus controls the cash flow. AP automation applications vouch for the streamlining of the invoice processing procedure so that you know where your money goes and for what reasons. It not only safeguards your revenues but maintains your reputation as a steadfast service provider.
3. Minimize Errors and Additional Costs
The objective of automating the Accounts Payable process is to save processing costs. Especially, in the manufacturing industry where production and revenues are intersected, AP automation can control the cash flow smoothly. And how they do it is by minimizing the errors that occur in the invoice processes.
Traditionally, the Accounts Payable process was done manually where human resources enter the invoice data. The manual AP process not only consumes time but can be erroneous as it can result in entering wrong figures, duplicating statistics, miscalculation, etc. In such cases, you will have to spend more money to rectify the data, or worse, it might make you mistakenly pay more than you have agreed to the vendors. It also causes you to waste a lot of time and energy.
AP automation software, which are 99% accurate, are designed to track inconsistencies within the cash flow. They can trace duplicated data, un-entered data, duplicated payments, and overdue payments. AP automation solutions make sure that nothing more than what is required leaves the revenues and incomes.
4. Transparent and Accurate
Lack of proper visibility in the Accounts Payable process can put the customer’s trust and the business reputation at stake. Manufacturing companies must be constantly aware that their transactions should be clean and visible. The transparency offered by the AP automation solutions allows both you and your vendors to view the flow of finances. Therefore, both parties are satisfied and mutual trust is established. Moreover, the data provided have a higher accuracy level which can make a good impression on the vendors, customers, and stakeholders.
AP automation can capture transaction data and correspondence across the process and store the extracted data on cloud storage. Then, the financial teams of both the manufacturing companies and the service providers can have access to it at anytime, anywhere. And they are able to modify, review, and analyze the invoice data effortlessly.
The increased visibility will safeguard your existing clientele and open the door to more customers that can accelerate revenues and control the cash flow of your company.
How can ELIPO help you?
ELIPO is meant to help you automate your manual invoice process. It seeks to bridge the gap between you and your vendors by assisting you with invoice processing procedures while ensuring visibility, accuracy, productivity, and saving your time.