How NetSuite AP Automation Optimizes Back-end Financial Systems?

In the business landscape, the current trend is the transition to Accounts Payable (AP) Automation.  

This software revolutionizes back-end financial processes by eliminating manual data entry. You can also avoid coding invoices, printing and mailing checks while transitioning to AP automation. It improves relationships with suppliers and partners.  

Businesses save time and money apart from reducing days sales outstanding. This enhances cash flow. 

The Role of NetSuite 

AP Automation solutions will be joining hands with Enterprise Resource Planning (ERP) systems in 2024. Anticipating such a scenario, companies should seriously spare a thought about automating Accounts Payable using NetSuite. Doing so ensures that businesses save time, increase control and enhance productivity.    

NetSuite also promises real-time tracking of the accounts payable process. You can reduce costs up to 40% through integration. You can also decide when and how to pay vendors thereby ensuring maximum control over outgoing cash flow.  

The user can also keep track of the status of each transaction from the time of creation to clearing the vendor bank account.

How Does AP Automation Work?  

The software transforms invoices from your suppliers into a common digital format. It then moves them through a digital workflow that ends with paying your suppliers. Optical character recognition (OCR) extracts data from invoices at the beginning of this procedure.  

Some systems use machine learning to identify patterns over time and increase accuracy. For instance, they might recommend particular general ledger codes or approval routes based on prior usage.  

You can also do away with manual intervention in most invoices by creating criteria specific to your company.  

Automation also comes with dashboards and analytical tools to help you control the process and sort out issues. You can also easily search and audit the data as all accounts payable information is in digital format in a single system.

Here are Some of the Key NetSuite AP Automated Tasks

• Input data 

It transforms data entry and minimizes errors, doing away with manual entry.

• Invoice matching 

Ensures the automation of invoice matching making it quicker and more precise. 

• Coding bills

By creating rules, you can do away with time-consuming and inconsistent coding that comes with manual coding. It also helps you to automatically assign the appropriate general ledger code to each invoice.    

• Approval route

It removes the need to manually distribute papers to each required approver. Electronic routing allows for improved workflow tracking.

How to Implement Automation and What are its Added Benefits?

Businesses can either opt for on-premises automation or pursue a software-as-a-service model. In the first case, companies can host and administer their own systems.  

In the latter case, the cloud hosts the application. You also need to take time to set up rules so that you can automate as many processes as possible. Even though AP Automation is quite common, some firms may have particular needs. So, you have to make sure the system can support such workflows.

• Paper storage, postage and delivery fees are out of the picture.

• Less time to handle supplier complaints and conduct investigations when there are fewer manual errors. 

• Auditing and compliance initiatives are simpler. Integral security and accountability tools can signal questionable behavior and help in the fraud detection process.

• Timely payment and consistency improve your reputation and benefit you in future supplier negotiations.

• Employees can be reassigned to jobs having a higher economic value as manual data entry is eliminated.

Points to Remember While Implementing Automated Accounts Payable Process   

• Planning

Create a cross-functional team that can outline the objectives for AP automation.

• Gather requirements  

Your accounts payable department compiles a list of criteria for an AP automation system. It also documents how the present system operates. After this phase, you produce a request for proposals (RFP) and distribute it to qualified vendors.  

• Vendor assessment

You assess the responses to your RFP from suppliers. You also examine the features, price, and implementation strategy of their suggested solutions.  

• Select a vendor  

You investigate further to ascertain the precise degree to which the most promising providers satisfy your needs. 

This entails creating a thorough discovery documentation and seeking demos.   

Get in touch with Jobin & Jismi to find out more about NetSuite Consulting and the advantages it offers to companies.