Accounts Payable are like the gears inside a clock. When they are turning smoothly, everything works, invoices get paid, and the organization hums along. But if one of those gears stops unexpectedly—because of a sick day or the check printer goes down—everything comes to a screeching halt.
For lean accounting teams, this can be especially challenging, as each member is critical to maintaining the flow of operations. This is where AP automation can make a significant impact.
The Value of AP Clerks and Bookkeepers
Your accounting team has organizational knowledge and relationships that can never be replaced by an automated workflow, no matter how sophisticated. AP clerks and bookkeepers play a vital role in ensuring the accuracy and timeliness of financial transactions. They handle vendor relations, ensure compliance, and manage the nuances of each payment. However, the repetitive and time-consuming tasks often associated with AP processes can limit their ability to focus on more strategic work.
Benefits of AP Automation for Lean Accounting Teams
AP automation can streamline your processes—like updating vendor records and submitting EFT files—and allow you to offload some of the more tedious parts of the accounting process. Imagine being able to get to those important but not urgent tasks, like digging into payment trends or researching vendor discounts, without sacrificing your lunch break or weekends.
Here are four ways automation can improve your AP processes, help prevent accounting staff burnout, and save your team time.
1. Meet Payment Deadlines Easily
Meeting payment deadlines is crucial for maintaining good vendor relationships and avoiding late fees. With AP automation, vendors get paid on time even if there is an unexpected sick day or an urgent request from leadership. Automated systems ensure that payments are processed promptly, without the need for manual intervention. This means no managing check stock or having to re-print checks because of alignment issues, and no tracking down signatures.
AP automation also helps reduce the risk of human error in data entry and calculations, ensuring payments are always accurate and on time. Automation coupled with invaluable human oversight allows you to identify and address any anomalies or exceptions, maintaining a harmonious balance between technology and human expertise.
2. Fewer Last-Minute Scrambles to Track Down Vendor Account Updates
One of the common challenges in AP processes is keeping vendor information up to date. Businesses change addresses, update bank accounts, and adjust terms, and their notifications may not break through the noise. Automated systems can check why a payment didn’t go through and update vendor address and account information if there are changes. This reduces the need for the last-minute frustration of tracking down vendor account updates to avoid late fees and ensuring that payments are always sent to the correct recipients.
Accurate vendor information not only ensures timely payments but also strengthens trust between your organization and its vendors. When vendors know that their payments will be processed quickly and accurately, it fosters a sense of confidence and partnership. This positive relationship can lead to better terms and discounts, ultimately benefiting both parties.
3. Added Layer of Separation
Separation of duties is a key component of internal controls, but it can be difficult to maintain with small finance teams. Using automated payments adds a layer of internal controls because payments are processed automatically with less human input once they’ve been approved. Invoices still go through standard approval processes, but you don’t have to worry about the same person approving an invoice who also prints the check. This added layer of separation helps prevent fraud and errors.
These internal controls also create a clear audit trail. The resulting transparency ensures that all stakeholders, from senior management to external auditors, have confidence in the accuracy and integrity of the financial processes. With clear and reliable internal controls, your organization can build a foundation of trust and accountability.
4. Easier Onboarding During Staff Turnover
Staff turnover can be particularly disruptive for lean accounting teams. AP automation simplifies the onboarding process for new staff members, because there are fewer steps to learn, and processes are clearly documented. Automated systems ensure that new team members can quickly get up to speed and start contributing to the team’s efforts without extensive training.
This efficiency not only saves time but can also improve overall employee morale, decreasing turnover. Your team can clearly see how their work is driving the mission of your organization, instead of being mired in a series of individual tasks.
AP Automation Native to Blackbaud Financial Edge NXT®
Automated payments can’t take the place of a knowledgeable AP Clerk or bookkeeper, but they can streamline your processes so you can focus on more strategic work—and be able to take an actual lunch break. By automating repetitive and time-consuming tasks, AP automation helps lean accounting teams meet payment deadlines, reduce last-minute scrambles, maintain internal controls, and simplify onboarding during staff turnover.
If your lean accounting staff is ready to reclaim their time so they can focus on more strategic work, check out Payment Assistant™ from Blackbaud. Payment Assistant is automated accounts payable directly in Financial Edge NXT, with the same experience you use for the rest of your fund accounting. Learn more about Payment Assistant on the automated payments resource page.
