What is accounts Payable.

Before telling about Accounts Payable Invoice, let me brief you about What is Accounts Payable.

When a company purchases goods on credit which needs to be paid back in a short period of time, it is known as Accounts Payable. It is treated as a liability and comes under the head ‘current liabilities’. Accounts Payable is a short-term debt payment which needs to be paid to avoid default.

Accounts Payable is a liability due to a particular creditor when it order goods or services without paying in cash up front, which means that you bought goods on credit. Accounts Payable as a term is not limited to companies. Even individuals like you and me have Accounts Payable.

Benefits of Accounts Payable Invoice :

1. Time Saving: Using business process automation to manage accounts payable reduces the time needed to process an invoice. Payables are routed according to prescribed business processes you determine, automatically and instantaneously.
2. Money Savings: Automate your accounts payable process and you will never mistakenly pay an invoice twice or overpay an invoice. You also will never be in danger of making late payments if a staff member overlooks a due date on an invoice. Instead, an AP automation system will alert you to duplicates, overpayments, and remind you all of pending due dates.
3. Holding the Line On Headcount: There’s little controllers dislike more than adding headcount, especially to their department. Invoice software increases staff productivity dramatically, letting the same staff handle an increasing volume of payables and reducing the need to add staff for as long as possible.
4. Cloud-Based Accounts Payable: An automated accounts payable system provides a sense of control that can never be achieved with paper-based invoices. Instantly, the invoice system lets you know where every invoice is, how productive the people managing them are, and virtually everything else a control freak might possibly want to know about their payables.
5. Create managerial workflows:Creating workflows ensures the detailed view on what and how account payable department does the operations. According to the Deloitte, these processes should detail what the accounts payable department does when it receives an invoice, how data is input and shared and what the process is for getting invoices approved.

I hope from my answer you get to know about the Accounts Payable Invoice, and Benefits of Accounts Payable Invoice