With the need for accurately recording and processing a large volume of transactions, accounts payable for real estate and property management firms can become a challenging task. Accounts payable in real estate involves managing scheduled and pass-through payments, one-time payments, and more. However, processing such complex transactions can be time-consuming, error-prone, and resource-intensive. With multiple projects, locations, and operating entities, the staff in this industry segment may also spend a large part of their day outside offices which slows down approvals and thus invoice processing.
This is where accounts payable automation solutions come to the rescue by enabling real estate businesses to focus on their core business without the need to hire additional accounting staff to take care of invoice processing and payments accurately and efficiently.
1. Improved Efficiency
Relying upon manual processes for a property management company may hamper growth. An accounts payable automation software is designed to eliminate manual, repetitive, and time-consuming tasks to streamline accounting processes. Efficient processes also enable these firms to manage an increased volume of invoices, suppliers, or larger spending with the existing headcount. A single accounting team is empowered to process invoices for multiple projects, locations, and even entities.
2. Higher Accuracy
Traditional accounts payable processes are manual and prone to human errors. Typos can take place or fields can be missed while manually entering invoice information into accounting systems. Such errors can be prevented by automating data extraction with accounts payable solutions. In addition, automating the invoice matching against purchase orders and receiving notes also ensures your company pays only for the goods that were ordered and have been received. Thus automating the payables process reduces room for errors while making supplier payments.
3. Faster Processing
Accounts payable automation solutions can reduce the turnaround time of processing invoices by up to 60%. By eliminating manual data entry, allowing vendors to submit invoices electronically, automated matching of invoices with purchase orders, and sending regular reminders for invoices pending approvals, these solutions are able to ensure faster invoice processing. With this, companies can also take advantage of early-payment discounts and save costs.
4. Better Cash Flow Management and Forecasting
Accounts payable automation solutions provide real-time visibility into payable processes and information on pending invoices and payment terms to help forecast cash requirements for paying off supplier liabilities. These tools often also incorporate intelligent reporting and analytics features that identify trends in spending and help businesses make informed cash decisions.
5. Improved Supplier Relationships
Accounts payable solutions ensure that accounting teams are able to process and pay supplier invoices on time. This strengthens the relationship with the vendors, who may in turn provide the business with favorable credit terms or prioritize orders over their customers. AP automation software also streamline communication with vendors by providing them with regular updates on payments and invoice status, thereby reducing the number of queries and faster resolution of discrepancies.
6. Enhanced Compliance
Automation solutions for accounts payable make compliance easier for the accounting team. They enable automatic matching or reconciliation of invoices against purchase orders. They also provide comprehensive audit trails to provide historical data about actions taken against each invoice and payment transaction. They also include in-built checks that ensure compliance with a company’s internal policies as well as external regulations like OFAC and AML.
7. Supports Remote Processes
Cloud-based accounts payable solutions allow finance teams and internal stakeholders to access the system to process and approve invoices at any time, from anywhere. Even suppliers can submit invoices digitally, saving AP teams from the hassle of managing paper invoices. These AP automation software also support payments to the suppliers directly from the system with a single click. The need for the physical presence of finance and accounting teams is thus eliminated, allowing them to easily work remotely.
8. Cost savings
The use of accounts payable solutions reduces the labor hours required to process invoices and ensures fewer resources are required to process an increased volume which saves staffing costs. Eliminating paper by digitally storing invoices and processing payments electronically through the system saves costs associated with printing, mailing, and storage. In-built controls and policies in solutions also prevent duplicate and incorrect or overpayments.
Real estate accounts payable automation can thus be a game-changer for businesses in the industry. These solutions streamline financial processes, enhance employee productivity and efficiency, and improve supplier relationships. With accounts payable automation, real estate businesses can focus on their core business, without worrying about accounting processes.