Why Your Small Business Should Invest in Accounts Payable Software

February 17, 2023

Are you tired of drowning in a sea of paper invoices? Or maybe you are struggling to keep track of your accounts payable. Also, what about constantly falling behind on payments? Look no further because an accounts payable software will completely revolutionize how you manage your finances.

Gone are the days of manual data entry and filing cabinets overflowing with paperwork. Thanks to accounts payable softwares, you can now streamline your entire accounts payable process. Everything from invoice receipt to payment processing and everything in between.

Whether you’re a small business owner or part of a large organization, accounts payable software can help you save time, reduce errors, and improve your overall financial management.

What are accounts payable software?

Accounts payable software is a financial management tool designed to help businesses streamline their accounts payable processes. This software automates many tasks in managing accounts payable, from receiving invoices to processing payments.

At its core, accounts payable software is a digital platform that enables businesses to track, manage, and pay their bills online. As a result, businesses can easily upload invoices, assign them to the appropriate accounts, and track their payment status in real time.

Why should your small business invest in accounts payable software?

As a small business owner, you constantly look for ways to improve your operations and save time and money. And why not? Time is money.

So, what’s one area where you can make a big impact? Your accounts payable process.

The following are 5 reasons why small businesses should invest in accounts payable software:

1. Streamlined invoice processing

With accounts payable software, you can easily upload and manage invoices in a digital format. As a result, the need for manual data entry and the risk of errors reduces. Additionally, the software can automatically match invoices with purchase orders and other relevant documents, streamlining the approval process and ensuring that invoices are paid on time.

2. Improved cash flow management

Accounts payable software can help you track your expenses better. As a result, you can manage your cash flow more effectively. You can better understand your payment obligations and plan your cash flow accordingly by providing real-time visibility into your accounts payable data. As a result, you can avoid late payments and other financial headaches.

3. Reduced processing costs

You can significantly reduce your processing costs by automating many of the tasks involved in accounts payable. This includes the cost of paper, printing, postage, and labor associated with manual invoice processing. Additionally, with the software’s built-in approval workflows and automated payment scheduling, you can reduce the time and resources required to manage your accounts payable.

4. Enhanced financial reporting

Accounts payable software can provide you with detailed financial reports. And give you insights into your spending patterns. Thus, helping you identify opportunities for cost savings. This data can be used to inform your budgeting and financial planning, as well as your purchasing decisions.

5. Improved supplier relationships

With accounts payable software, you can pay your suppliers more quickly and accurately. This can further help to build stronger supplier relationships. Furthermore, this can lead to better pricing and more favorable payment terms. Thus, helping you save money and improve your bottom line.

Top accounts payable softwares you can invest in!

Managing your accounts payable process can be a time-consuming and challenging task. But luckily, there are many accounts payable software options available that can help you streamline your operations and improve your financial management.

The following are 5 accounts payable software options for small businesses:

1. Bill.com

The fact that Bill.com has been around since 2006 makes it seem inevitable that it is one of the most well-known AP and AR automation tools. Automatic approval procedures, paperless document management, and both local and foreign payment choices are just a few of the ways the system may streamline your bill paying.

Likewise, Bill.com has powerful AR features, including invoicing, payment processing, and self-reconciling bills.

The software includes the following features:

  • Customizable invoices
  • Expense tracking
  • Contract management
  • Invoice scheduling and automatic reminders
  • Inventory and time tracking
  • Sales tax support

2. QuickBooks

QuickBooks is another popular accounting software that includes accounts payable features. It also offers payroll and tax preparation features and online banking integration, allowing users to automatically download and categorize banking transactions.

Furthermore, QuickBooks is available in several versions — QuickBooks Online, QuickBooks Desktop, and QuickBooks Self-Employed.

The software includes the following features:

  • Automated invoice matching
  • Payment reminders
  • Expense tracking
  • Bank feeds
  • Real-time inventory management
  • Capture bills using a phone
  • Multi-currency support

3. Expensify

Expensify is an adaptable and user-friendly expenditure management tool that is perfect for enterprises of all sizes. When it comes to managing company expenditures, Expensify has you covered with receipt imaging, a fully featured mobile app, and access to the Expensify Card.

Expensify’s plans are affordable enough for even the tiniest businesses, making it a great choice for anybody needing an efficient expenditure management solution.

The software includes the following features:

  • Real-time Expense Reports
  • Corporate Cards
  • Flexible Travel Integrations
  • Advanced Tax Tracking
  • Automatic Accounting Sync
  • Automatic Reporting & Submitting
  • Automatic Reimbursement
  • Unlimited Expense/Receipt Upload
  • One-click Online Reimbursement
  • Multi-level Tagging

4. Divvy

Divvy is like having a personal financial assistant that helps you stay on top of your business expenses. With its intuitive and user-friendly interface, Divvy allows you to manage your budgets and expenses in real-time effortlessly. Its smart automation features help you save time and reduce errors, while its powerful reporting tools provide insights into your spending trends and help you make informed financial decisions.

The software includes the following features:

  • Real-time expense tracking
  • Budget management
  • Smart automation
  • Powerful reporting
  • Virtual cards

Wrapping up

Investing in accounts payable software is a smart move for small businesses that want to streamline their operations, reduce costs, and improve their financial management.

We are optimistic that after reading this blog, you now know why you should invest in accounts payable software. But if you still have any doubts, GJM & Co. will happily answer them.

Our expert accounts will walk you through the basics of bookkeeping, accounting balance, accounts payable, receivables, and more. We will also be happy to manage these activities for you.

Should you have any queries or need consultation, Schedule a Call today or write to us at info@gjmco.in.