How Does Paperless Accounts Payable Work?
As a restaurant owner, you can feel confident that things are going to continue to change and evolve. It is your job to adapt to these changes to ensure your restaurant can continue being successful.
For many years, owners and managers of restaurants didn’t use much technology. In fact, the typical desk in restaurant offices was full of notes, binders, invoices and piles and piles of other paperwork that needed to be reconciled. The only marketing outreach even considered was newspaper and radio ads in the local area. Technology was extremely expensive at this time and it required training, which was two items that most restaurant owners were short on.
Even today, you don’t have much time to sit around and contemplate growth. As a restaurant owner, you know things are always moving. As a result, it is best to eliminate those outdated manual processes and start using something more efficient and effective in your accounting processes – paperless AP automation.
What Is Paperless AP Automation?
AP, which stands for accounts payable, is the amount of money your restaurant owes to food and liquor vendors. On your balance sheet, this is shown as a liability. With AP automation in place, you are essentially streamlining the entire accounting process. Rather than having to review, reconcile, track and keep up with payments, deliveries and more, everything is handled automatically in the software.
Some of the most common types of paperless AP automation solutions available today that can assist your restaurant and help to make the entire accounting process easier include:
- Online tracking
- Workflow and scanning
- Supplier networks
- Electronic invoice user interfaces
- Reporting capabilities
- Spend analytics for each invoice
- Payment services
How Does AP Automation Work?
Just as the name implies, information, invoices, data, payments and more are captured automatically. Then the software will sort everything according to the type of invoice it is, country, supplier, buyer and other relevant information. With this software in place, you don’t have to worry about issues related to duplicate invoices, lost invoices, non-recorded payments and more.
You can also automate and control all the unmanaged processes and data you need for running your business and make data entry faster, much more affordable and more accurate.
Why Should You Implement AP Automation in Your Restaurant?
There are several reasons you should consider implementing AP automation in your restaurant, including the following:
- Centralization: In many cases, you will have to coordinate with multiple locations and vendors. As a result, you can make it easier with AP automation. This brings everything together and makes it easier to keep track of.
- Multiple device support: Chances are, your restaurant staff doesn’t work from a single device. As a result, when you implement AP automation, you can ensure the software is accessed from any location, including desktop computers, smartphones, tablets and more.
- Improved employee morale: If you have software in place that does the work your accounting team did in the past, then your staff can be more productive and efficient. This will help improve employee morale since they will be able to get more done during the course of a day.
- Improved customer service: If you are still using outdated processes, then you will make a bad impression on your employees, vendors you are working with and other business partners that you have chosen to work with. This can also result in accounting errors, overcharging of suppliers and more.
There is no question that accounts payable can be an extremely time-consuming part of your restaurant business’s operations. With the right automation solution in place, you can empower your managers, as well as your back-end staff. You also provide the necessary tools to have these individuals work more accurately and efficiently.