Introduction
Since the automation of healthcare records, many facilities have taken automation to the back office in accounts payable (AP). The manual system is costly and time-consuming, bringing automation to the forefront as a solution. Healthcare facilities have unceasingly endured essential products being required for supply lines. Such constant orders result in numerous purchase orders and invoices for payable accounts.
What is Accounts Payable Automation?
The Accounts Payable (AP) process includes purchase orders and payment invoices. The AP system generates invoices and bookkeeping entries electronically rather than manually. Electronic production allows healthcare facilities to deliver purchase orders to suppliers and receive invoices from them electronically, boosting the process of working within the healthcare organization. However, automating the account payable process does not abandon the need for paperwork because some orders require manual handling.
Why Use Accounts Payable Automation?
Until a facility sees the negative impact of paper handling, it may not see the use of automating the AP process. One incentive is that suppliers often offer deep discounts for fast invoice payments. While some facilities may hesitate to automate their AP because they consider paper-handling error-free, most will learn automation can also be. Suppliers may not be automated, so continuing manual accounts payable is necessary. Still, once a supplier can see the accuracy and speed of the automated system, they, too, will be on board. Healthcare facilities and suppliers must communicate and decide to automate the process together. The automated AP system is faster, requires less workforce to facilitate, and is highly accurate. The only drawback is that both the facility and the supplier have to be automated to use it between them.
Implementation Steps
The healthcare organization must take the following steps to successfully implement AP automation.
- Recruit a highly capable project manager to run the automated AP process. The manager will efficiently control all its aspects and have the ultimate authority to make decisions regarding its smooth running.
- Avoid spending too much time between departments’ training and allowing them to go live for working because this will lessen their interest in utilizing the AP process.
- Strive to perform both processes, i.e., automated and current production procedures, to evaluate which method is less hassled and more productive.
- The Project Manager should develop a networking department to handle a large number of suppliers to handle electronic purchase orders. Moreover, the networking department must oversee in-house capabilities to ensure that all the departments are interconnected with the AP process.
- The Project Manager must have a separate IT department to manage the software required to run the AP process. The software should input received invoices generated electronically into automated accounts payable software. Also, the software must produce regular reports of AP staff to review invoices before they are approved. The AP department must also review the working of employees involved in running the AP process.
AP as an Increasing Priority
The lack of seeing the AP process as an organizational priority is one of the most significant problems for its implementation. Accounts payable departments must consider the process as an important priority. Most healthcare facilities can afford to use the electronic system, but there is a need to change the perception of the staff handling the AP process. The facility will see positive profit from this technological investment and see growing revenue on an annual basis.
Conclusion
Awareness of automating payments is increasing among hospital administrations for potential savings and future profits. The evidence-based decision-making process in the supply chain is essential for automation solutions, and there is a fundamental opportunity for healthcare facilities to take advantage of such an automated technology. Healthcare administrations that are craving quick solutions to their payment procedure must ponder the use of AP automation and its benefits.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
