Do you source your business products from suppliers on credit? If yes, you need to create an account payable (AP) department. The department will be responsible for tracking what creditors owe your business. It also ensures that payments are processed, approved, and made to the right supplier at the same time. Nowadays, AP automation software can free up your employees for troubleshooting and other important financial functions.
Sometimes accounts payables (AP) can be an overwhelming task, especially if you’re still tracking suppliers’ records manually. It can consume much of your time. Additionally, manual systems are prone to human errors. The solution to this is to automate time-consuming AP processes using computer software. Make sure you find the right solution.
Here are important factors to consider when purchasing AP automation software for your business.
1. Cost
Cost is probably the main factor to consider when finding accounts payable automation software. These costs include initial purchase, installation, monthly subscription, and maintenance fees.
Various vendors in the market provide their solutions at different costs. Find an AP service provider that can work with your budget. However, whichever the price, it’d be a good idea to select a solution that can help your business achieve its goals.
2. Quality
One of the major goals of any business enterprise is to maximize profits. For that reason, most CEO go for low-quality AP automation software without considering their quality. Little did they know that such solutions could hurt their businesses in the long run.
Poor-quality software can malfunction at any time. This not only reduces the productivity of your accounts payable department but can also attract a lot of costs. For instance, it can force you to change the system altogether or incur huge repair costs.
Avoid this by purchasing high-quality AP automation software. Such solutions can serve you for the longest time possible, thus minimizing your costs.
3. Scalability of Software
Today you’re running a startup or a small business. However, you might have plans to expand it in the future. This calls for scalable AP automation solutions.
The scalability means the ability of the software to accommodate your growing business. It ensures you’re not purchasing another application even when your firms expand.
Before you pay for any AP automation software, ensure it gives you the flexibility to add more users in months or years to come. A scalable solution goes a long way in minimizing your costs.
4. Compatibility
Adopting modern technologies is the way to go if you want to grow your business within no time. This involves using computer applications to automate most of your business processes.
Apart from AP software, you probably have other automated systems on your website. That’s why you need to select a compatible solution.
Compatibility is how well your AP automation software can integrate or work with your other existing programs. Choose accounts payable solution that’s flexible enough for compatibility.
Finding a compatible AP automation software allows you to save on costs. It helps eliminate the need to change all your other systems to accommodate your new program.
5. Ease of Use
The various available AP software is made differently. Some are very simple to use, while others are complex. Make sure you select a user-friendly AP automation solution.
Simple to use software can increase the productivity of your accounts payables workers. For instance, it eliminates the need to waste a lot of time training your employees on how to use it. At the same time, it improves their experience and morale, thus reducing the rate of staff turnovers in your business.
6. Security
Cybersecurity attacks are a major concern in the eCommerce world. It occurs when hackers and other unauthorized persons access your business systems without your knowledge or permission.
Accounts payable is one of the main areas targeted by cybercriminals. When hackers access your account payable system, they can transfer your money to their accounts.
You can avoid this by finding secure AP automation software. Common features of a secure accounts payable application include password protection, automatic system updates, and backup programs.
7. Software Customization
Several businesses operate in the same sector. However, each one of them is unique.
That’s where customizable AP automation software comes in. Select a solution that can be customized to meet your specific business needs. As a result, this helps improve your experience and efficiency.
8. Reviews
You can meet several AP automation software vendors online. However, not all of them are good.
Some can promise to provide better solutions only to deliver substandard software. Others can fail to deliver anything even after receiving the payment. Avoid losing your money by reading reviews.
You can read reviews by studying other clients’ comments online. This can be on a website or other digital platforms like social media. Likewise, reading reviews allows you to understand the kind of experience to expect from the vendor you want to work with.
There are two types of reviews. The first is positive and indicates that other clients got better services from the seller in question. The other one is negative and can be a reflection of poor services. Work with AP automation software vendor with an established positive review.
Apart from reputation, select a vendor who can provide other services like support and maintenance.
Sometimes your system might malfunction due to a technical glitch or human error. Finding a service provider that offers technical support ensures your software AP software is restored to functionality within no time. At the same time, your vendor should be able to maintain and repair your AP system when necessary.
9. Testing the Software
Buying and installing an AP automation system is a huge investment and should be taken seriously.
You might not want to spend your money on the wrong solution. That’s why you need to test the application before fully implementing it in your business system. Additionally, find a vendor who will allow you to test the system before paying for it.
Takeaway
If you want to manage your creditors more effectively, you need to install AP software into your business systems.
This computer application allows you to automate your accounts payable systems. As a result, it helps save time by eliminating lengthy manual processes. Additionally, it enables you to eliminate human errors which could harm your business.
In conclusion, consider the factors explained in this article when finding AP automation software for your business.
