Top 7 Accounts Payable Automation Software

From receiving goods to clearing payments, it is not a single-click process. Multiple steps in between make the accounts payable process tedious and time-consuming.

You receive goods, match them with purchase orders and invoices, send the invoices for approval, make the payment, and finally, maintain records for bookkeeping. This process alone takes weeks and creates confusion when multiple stakeholders are involved.

Think about purchases above $50,000. There are multiple approvals, and each purchase triggers a unique workflow. Documents are not consolidated, and no one has a clear idea of the payment status. 

Thus, accounts payable become chaotic.

Can You Automate Accounts Payable?

To streamline your accounts payable process, you can use tools to automate it. This will simplify bill payments and give you more visibility and control over money.

While it will take time for stakeholders and employees to embrace automation, you can consolidate your scattered pieces on a centralized platform. If you are looking for suitable AP automation tools for your company, check out our list of the top accounts payable automation software.

This post will delve deeper into how you can automate the accounts payable process and how it will help your business. 

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What is the Accounts Payable Automation Process?

Accounts payable automation uses tools to automate invoice verification, approval workflow, payment processing, and bookkeeping. 

Instead of manually organizing, matching, approving, and clearing invoices, the entire process goes on a digital platform to provide visibility and control at each step. So, earlier, employees would spend hours getting approvals and days clearing payments, but now, an automation tool reduces the invoice processing time. 

The platform captures and extracts the invoice from emails via optical character recognition (OCR). The invoice goes to the platform with all the critical information, such as purchase order and simplifies three-way matching. A trigger-based approval workflow notifies the stakeholders to approve invoices. The admin gets complete visibility of each step and clears the payment without going through a variety of software. 

How to Automate Accounts Payable

Automating accounts payable is as simple as choosing and integrating the right automation software with your existing accounting and procurement software.  

The automation software offers visibility into where the money is going and control over the entire process. You can customize the approval workflows and payment gateways and create an ecosystem that supports your procurement process. You can accommodate manual processes and integrate them with other software without going through a complete flip.

With the right automation software, you bring all the critical stages of accounts payable on a centralized platform. Here are the five key steps you can automate:

1. Invoice Management

Manual: The vendor sends an invoice to a dedicated email or a physical copy via fax or mail. The employee receives it and moves from one stakeholder to another for approval. The process is delayed for days if any manager is unavailable. Once the approval is complete, all the documents go to the accounting team, who clears the payment. 

Automated: Depending on how the vendor sends the invoice, the automation platform captures the invoice from email or WhatsApp. If you receive a physical invoice, you can upload the invoice, and the system extracts all the vital information via OCR. There's no need to manually enter details or add a general ledger (GL) and taxation code. The system captures, extracts, and consolidates all the invoices.

2. GRN Matching

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Manual: The dedicated team receives goods along with the goods receipt note (GRN) and must match it with the invoice and purchase order. This ensures that the specified goods are received as per the purchase order. Manually, this process is prone to errors, leading to discrepancies. It demands accuracy to ensure you receive the correct items in specified quantities. 

Automated: Automated software makes this easy by combining all the relevant documents on a single platform. The dedicated team has the invoice and purchase order side by side, making it easy to compare items, purchase orders, and invoices for three-way matching. As a result, spotting discrepancies becomes more manageable, reducing the chances of errors.

3. Approval Workflow

Manual: Once the invoice is received, the employee gets it approved by dedicated managers. Based on the invoice amount, they need more than a single approval. Manually, this means going from one office to another or delving into long threads of email or Slack conversations. It becomes difficult for accounting teams to track approval and clear payments. 

Automated: With automated software, each invoice triggers an approval workflow for relevant stakeholders to approve the payments. The admin can create custom no-code workflows based on different if-then rules. For instance, marketing purchases above $50,000 will have more approvals than expenses of $5,000. Also, all the relevant teams will have visibility into the approval status, making it easier to clear payments on time without confusion.

4. Payment Processing

Manual: Once the invoice is approved, the accounting team determines the details and pays via checks, cards, or other payment methods. It takes a few days before the payment is cleared, and the teams need to sync all the information across the accounting software for reconciliation.

Automated: With automation, accounting teams and employees enjoy more flexibility. For instance, Pluto offers corporate cards, payment gateway integration, and a digitization platform for bookkeeping.

• With corporate cards, you can create custom vendor-specific cards with advanced controls to ensure payments are made only for approved vendors.
• Pluto integrates directly with your payment gateways to facilitate payment within the platform. 
• If you make payments via checks or other physical modes, Pluto will act as a digital bookkeeping platform. You can enter the payments made on the centralized platform and ensure that all the information is streamlined. 

5. Reconciliation

Manual: Reconciliation is the messiest part of accounts payable. Teams must maintain records, manually enter all the details, and sync them across the accounting platforms and ERPs. It is time-consuming, prone to errors, and tricky in case of purchases where one invoice invites multiple tax and GL codes.   

Automated: Automation consolidates all the information on a single platform without manual data entry. It uses OCR to extract all the critical information with a feature to upload the invoices in bulk. Further, you can split the transactions to add multiple tax and GL codes to address the audit season rush.

How Accounts Payable Automation Simplifies the Procurement Process

Accounts payable automation is not just for the procurement or the accounting department. It also makes it easier for stakeholders to approve the payments and employees to get timely resources.

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Overall, it assists you in bringing together scattered parts of the procurement process. Here are reasons why you must invest in accounts payable automation:

1. Improve Compliance

You get complete visibility and control over your accounts payable. You can create custom workflows to ensure that any purchase that goes against the company policy is rejected. You can also accommodate intricate hierarchies to suit your organization's needs and get timely approvals.

2. Avoid Double Payments

It is usual for teams to end up paying the same invoice twice as no one has visibility into the payment status. It happens when the same invoice is paid twice by different team members or when vendors send the same invoice twice, and both get paid. You can avoid this as the software detects duplicate invoices and gives visibility into the status of invoices. The main dashboard highlights the pending invoices and the ones awaiting approval. It becomes easy to stay on top of all the invoices and avoid errors.

3. Faster Approvals and Matching

You get a trigger-based no-code approval workflow engine where you can create customized workflows to accommodate intricate hierarchies. The software notifies the stakeholders to review and approve the invoices. Since all the information is available on a single dashboard, two-way or three-way matching is a matter of a few minutes. This accelerates the approval process, and payments are disbursed much faster. It improves the vendor relationship without risking over, under, or delayed payments.

4. Better Reconciliation

You get all the relevant documents consolidated on a single platform with the appropriate purchase. Additionally, the software automates the coding and categorization, simplifying the reconciliation process. In case of discrepancies, spotting errors becomes easy. Moreover, with features like locking the approved payments and restricted access for auditing, you can eliminate the chances of fraud or manipulation.

5. Accuracy

You improve the accuracy of your records and GRN matching with all the information streamlined on a single platform. Moreover, as the software relies on OCR, you eliminate the need for manual data entry, reducing the chances of errors. Also, you can integrate the automation software with your accounting platform and ERPs to sync data and ensure consistency across the platforms. 

6. Centralized Dashboard

You get a centralized dashboard with all the key information available in a unified place, acting as a single source of truth. Additionally, you get insights that can help in data-driven decision-making to facilitate procurement cost savings. Further, you can view all the awaiting payments and approvals on a dedicated dashboard. You no longer need to run from one platform to another for information as the software integrates with your accounting system.

7. Accessibility

The unavailability of a single person can create bottlenecks in the approval process and block the supply chain. With all the information streamlined on a single platform, each stakeholder can access relevant data for decision-making. So, whether the CEO is traveling or the CFO is not at the office, they can access the details from any corner of the world and avoid disruption in the supply chain.

8. Visibility

You get visibility for each step, each document, and each purchase. You can bring the entire procurement automation on a single platform and track the status in real time. Whether an employee raises a request, gets an invoice, or needs to clear payment, you will stay on top of the information without creating any delays or friction.

Automation is Easy With the Right Software

Adopting automation software isn’t easy, especially for critical processes like accounts payable, which also involve external stakeholders. The top three factors to look for in appropriate software are flexibility, visibility, and integration. 

Choose one that integrates with your existing processes and systems and is flexible enough to accommodate complex hierarchies. Instead of focusing solely on the accounting or procurement team, it should cater to all the key stakeholders and make automation easier to adopt. 

At Pluto, we aim to bring a balance among the spenders (employees), the savers (finance teams), and the sourcers (procurement teams). Each stakeholder gets visibility, and decision-makers get flexibility. Pluto integrates with your current system and enables you to automate accounts payable without affecting the supply chain. 

You can also automate your entire procurement process with Pluto and improve your bottom line. Read more in our procurement automation post.

The traditional procurement process is time-consuming, prone to errors, complex, and challenging to implement efficiently. From raising a purchase request to making vendor payments, multiple stakeholders are involved. In addition, securing approvals through various channels of an organization leads to chaos. Hence, 77% of companies are shifting to procure-to-pay solutions, also known as procurement software.

What is Procurement Software? 

Procurement software are tools that automate the procurement process. 

Instead of relying on multiple platforms and different channels to procure goods and services, the process is automated and brought together on a centralized platform. 

A powerful procurement solution helps you in:

• streamlining the request and approval process for purchases
• generating, tracking, and managing purchase orders
• creating, negotiating, and tracking supplier contracts
• managing and maintaining supplier relationships 
• automating invoice validation, approval, and payment workflows
• integrating with other systems for seamless data flow and coordination.

What Are the Benefits of Procurement Software? 

By automating your procurement process with a procurement management software, you can improve it in the following ways: 

• Once you enter data, it is auto-populated throughout the procurement cycle. This minimizes the risk of errors due to manual data entry in purchase orders, invoices, and other documents.
• You get real-time visibility into the procurement process. You can also track the status of purchase requests, orders, deliveries, and payments. 
• With built-in reporting and analytics tools, you can generate detailed reports on spending, supplier performance, and other key metrics. This data-driven insight enables better inventory planning and strategic decision-making.
• You can standardize workflows for purchase requisitions and approvals. Route the requests to the appropriate individuals for approval and reduce any delays. Notifications and reminders are automated, ensuring timely responses.
• Invoice processing and payment workflows are automated. This ensures that invoices are paid on time. This helps in taking advantage of early payment discounts and strengthens vendor relationships. 

Top 6 Procurement Software 

To help you select the procurement management software best suited for the needs of your organization, we have listed the top 6 procurement solutions:

1. Pluto 

Pluto is an all-in-one procurement software designed to transform your accounts payable (AP) processes. It reduces your finance team's workload and makes procurement easy. From automating purchase requests to setting multi-layer approval workflows and managing vendors, it is the ultimate procurement solution to transform a chaotic procurement process into a faster and more efficient one. 

Key Features:

• Features fully customizable and automated workflows for raising purchase requests and purchase orders, requiring no technical expertise
• Offers flexible approval engine capable of managing intricate hierarchies
• Enables multi-layer invoice approvals with policies to align with your company's structure
• Ability to upload invoices easily via WhatsApp images, eliminating the need to search for invoice details. Also, facilitates invoice capture via emails directly to speed up the receipt capture process.
• A centralized dashboard to gather bills in one place and track the status to avoid double payments
• Vendor-specific corporate cards to control budgets and detect irrelevant expenses
• Supports local and international wire transfers to make payments 
• OCR technology minimizes manual data entry by creating and populating bills from invoices
• Supports ERP integration to synchronize your vendors, POs, and bills and integrates with accounting software, such as Oracle, NetSuite, Zoho, Quickbooks, Wafeq, Xero, etc.
• Raises alerts for upcoming payments and enables scheduling payments in advance and automate invoices 
• Provides a complete audit trail of the process to ensure visibility at each step
• Shows real-time analytics to facilitate deep insights for supporting budget control

Pricing:

‍Request the sales team for a custom quote

Pros:

• More financial control with vendor-specific corporate cards 
• Better Forex rates than most local banks 
• Multiple integration options

Cons:

• Slightly longer on-boarding due to corporate card offering 
• Integrates with all other major ERPs except Tally

2. Yooz 

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Yooz optimizes the AP process, specifically focusing on invoice management. It is a cloud based software that uses artificial intelligence (AI) and machine learning technologies to enhance security and control in AP automation. It is suitable for mid-size companies of all sectors wanting to automate procurement with a cloud-based procurement solution. 

Key Features:

• Enables online, real-time management of supplier relationships, improving communication and collaboration
• Provides mobile access for invoice approval and communication
• Maintains regulation-compliant traceability, ensuring adherence to relevant laws and standards
• Automates real-time GL coding and purchase order matching
• Captures all types of documents through various channels, such as email, drag-and-drop, mobile, scan, and sFTP, supporting multiple formats, including PDF, Factur-X, UBL, CII, and EDIFACT
• Integrates with accounting software and  and ERPs
• Allows users to approve and pay invoices in batches, offering multiple payment options, such as Virtual Credit Card, ACH, eCheck, and Paper Check
• Offers a range of services, including consulting, configuration, training, and user support

Pricing:

Free trial for up to 15 days followed by a "pay-as-you-use" model.

Pros:

• Integration with Sage Intacct
• Ability to tag people in the comments and email them directly from the invoice
• Numerous criteria available for setting up the approval workflows

Cons: 

• Doesn’t offer payment services in UAE, so you need to carry out payments on a different platform
• Doesn't have integrations with major suppliers as a form of punchout
• Time-consuming to download and export files
• Hard for vendors to send the invoices through Yooz

3. Procurify

Procurify speeds up the procurement process, enhances internal communication, and reduces financial risks. It is an easy-to-implement tool that saves time for finance and operations teams. From catalog management to custom user controls, it helps to track the procurement process in real-time. 

Key Features:

• Tailors purchase orders to match your internal processes and vendor expectations
• Creates, tracks, and maintains an audit trail of all procurement transactions for transparency and compliance.
• Enhances financial controls by enabling purchase order-based purchasing
• Ensures that requested items are approved against budgets before procurement.
• Sync purchase orders with your accounting system or ERP, whether via API, CSV, flat file, or direct integration
• Integrates with trusted suppliers through PunchOut catalogs to streamline the ordering process.
• Enables blanket purchase orders, which involve making multiple purchases against a single purchase order, even when details of future purchases may be unknown.
• Purchase order workflows to save on shipping costs, unlock vendor discounts, and reduce paperwork 

Pricing:

Starts at $2000/month with a custom pricing tier

Pros:

• Easy to make amendments in the original purchase order
• Enables ordering from multiple websites for resources, including Amazon
• Makes it easy to upload documents to support expense and order reports

Cons:

• Doesn’t offer payment services in UAE, so you will need to carry out payments on a different platform
• Isn’t catered to the UAE market, and does not support UAE specific workflows such as VAT management
• Cannot edit orders once they are approved
• Cannot see the order history for a catalog item without running a report
• Physical inventory has to be tracked outside Procurify

4. Precoro

Precoro is a cloud-based solution designed to streamline operations, automate tasks, and centralize purchasing procedures. It enables tracking discounts, monitoring corporate expenses, and enhancing cash flow transparency. It also provides analytics and reports for strategic procurement planning.

Key Features:

• Simplifies the approval by allowing users to approve from any device via email or Slack notifications. 
• Supports customizable approval workflows with multi-step and role assignment
• Facilitates creating, approving, and tracking purchase orders and transfer orders from Amazon Business via Punch-in
• Connects with various ERPs and business tools like NetSuite, QuickBooks, and Xero, or its API
• Ensures data security through Single Sign-On (SSO) and 2-factor authentication
• Offers an intuitive interface and guidance from a dedicated customer success manager whenever needed
• Gives a risk-free 14-day free trial with access to all features

Pricing:

Starts at $35 per user per month billed annually for teams with under 20 members and offers custom pricing for enterprises

Pros:

1. Provides flexibility for enterprise needs
2. Works well for budgeting procurement
3. Allows tracking invoices in a centralized environment

Cons: 

1. Requires training to customize complex workflows
2. Invoice processing is slow
3. Isn’t suitable for manufacturing industries
4. Difficult to collaborate on invoice drafting

5. Kissflow

Kissflow simplifies and enhances procurement processes while ensuring transparency and compliance. It helps to automate the entire process without requiring technical expertise or coding experience. It comes with 50+ ready-to-use applications, enabling unlimited automation applications.  

Key Features:

• Offers fluid forms to enable easy capturing, approval, and tracking of purchase requests
• Allows to register and maintain vendors effortlessly with access to multilingual catalogs
• Integration with accounting systems, ERP, and finance systems like Quickbooks, SAP, and Microsoft Dynamics 
• Accelerates the invoice approval process with timely alerts and automated checks. Connect invoices to contracts, purchase orders, and service entry sheets in a single dashboard
• Customizable reports to visualize data using charts, filters, and heatmaps
• Ability to define and manage budget restrictions with dynamic rules throughout the entire procure-to-pay lifecycle
• Customized approval workflows to ensure transparency with rule-based approval processes
• Smart alerts that provide real-time updates on the status of purchase orders and invoices to keep stakeholders informed 

Pricing:

Starts at $2499/month (billed annually). Pricing varies based on transaction volume and number of users.

Pros: 

• Intuitive interface with a relatively short learning curve
• Allows automated workflows to be created with limited technical expertise

Cons:

• Not built specifically for procurement teams
• Does not support payment flows in UAE
• Cost of its license is high (particularly for SMBs)
• Can not handle intricate processes that require a high degree of customization or involve multiple conditional branches
• Customization options are limited, including specific integrations, advanced business rules, or more sophisticated automation capabilities

6. Vendr

Vendr is a practical solution for streamlining SaaS procurement. It simplifies the entire process, from intake requests to contract management. It provides essential SaaS insights, negotiates expert advice, and integrates with core business tools for procurement and vendor management. 

Key Features:

• Buyer guides to provide negotiation insights and gain the upper hand in software purchases
• Negotiation advisory to provide personalized guidance on negotiating like a pro and enter negotiations with confidence
• Simplified intake forms to ensure company-wide compliance and visibility
• Integration with different accounting and finance tools, such as Oracle, NetSuite, Intuit, Quickbooks. 
• Integrates with platforms like Rippling Workday to include correct stakeholders. Additional integration with SSO providers such as onelogin.
• Comprehensive renewal dashboard to receive early alerts and streamline the renewal preparation process to maximize savings.
• Vendr Slack integration for quick answers and timely notifications to collaborate in real time with your team, minimizing approval cycle times

Pricing:

There are 2 packages—the basic one starts at $15,000/year and the pro package starts at $20,000/year.

Pros:

• Offers assisted buying with a team who negotiates on your behalf
• Comprehensive database of vendors in one place
• Helps standardize procurement workflow 
• Provides insights about fair market value 

Cons:

• Restricted to SaaS procurement only 
• Multilingual services are limited 
• Navigating multiple workflows is not as fluid as desired
• Doesn't support multiple currencies 

Find the Right Procurement Software 

When choosing procurement software, focus on user-friendliness, scalability, and integration capabilities. Make sure the software aligns with your specific needs.

Finding the right software for accounts payable automation will be crucial for your business. For instance, if you frequently deal with multiple suppliers and have a complex approval process, ensure the software can accommodate these intricacies. Similarly, if you're in the healthcare industry, look for procurement software that complies with industry regulations like UAE Healthcare Law and the Dubai Health Authority (DHA) regulations. This ensures the privacy and security of patient data and adheres to local data protection standards. Moreover, check if the vendor offers active support and training. In case of a technical issue, having an unresponsive support team can disrupt the process and create bottlenecks.

Don't rush the decision. Thoroughly evaluate multiple options. Investing in an appropriate solution will save you money and headaches in the long run.

Want a tool that is safe, fast, and transforms your chaotic procurement process into an automated solution? Book a demo today and see how Pluto can simplify procurement for your team.

Not every expense in the company requires you to issue a check. Payments like petrol, supplies, stamps, etc., are paid via cash. For these business transactions, either the employees take cash in advance or put in a request for reimbursement. This mechanism requires you to set some cash aside and employ a person for receipt management and reporting. The cash is referred to as petty cash. 

What Is the Meaning of Petty Cash?

Petty cash refers to a small amount of money that businesses keep readily available for handling minor payments and expenses that are too small to be processed through regular accounting procedures. It is often kept on hand and is reimbursed periodically.

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What are Petty Cash Examples?

Petty cash includes small miscellaneous expenses, such as:

• Office supplies
• Gifts
• Client lunch
• Refreshments
• Postage
• Medicine and first aid
• Minor repairs
• Transportation

What Is the Process of Petty Cash Disbursement?

The first step in petty cash disbursement is to define policies and procedures. This includes specifying:

• The purpose of the fund
• The maximum cash amount 
• The types of expenses the fund can cover
• The process for replenishing the fund

The next step is to appoint a petty cash custodian. They are responsible for handling the petty cash fund. 

Then, you set up the fund by transferring the initial sum of money into a safe or locker. This amount should be sufficient to cover minor expenses for a defined period. 

When employees make small purchases, they request funds from the custodian. After the purchase, they return with a petty cash voucher, receipt, and cash balance. 

The custodian reviews the receipts and provides reimbursement. They maintain detailed records of every transaction, including the date, purpose, recipient, amount, and a brief description of the expense. This record-keeping method ensures transparency and accountability.

After that, the custodian reconciles the petty cash fund at regular intervals. They add up the safe's cash balance and the receipts' value. The total should match the original amount in the fund. 

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What are the Two Types of Petty Cash?

To manage petty cash, the custodian relies on either of the petty cash book systems:

1. Imprest Petty Cash Book

An imprest petty cash system involves maintaining a fixed amount of money in the petty cash fund at all times. 

For instance, you set up a fund of $100. When the fund gets down to $20, the custodian requests reimbursement and replenishes the fund to $100.

2. Columnar or Analytical Petty Cash Book

A columnar or analytical petty cash book is a detailed and structured method of recording petty cash transactions. It categorizes expenses into different general ledger codes for better tracking.

For instance, you create separate columns, such as "office supplies," "refreshments," "meals," etc. Whenever a transaction occurs, the custodian records it in the appropriate column and specifies its purpose.

What are the Challenges of Petty Cash?

While the process of petty cash seems linear and simple, it has many intricacies in practice. 

Imagine the custodian getting hundreds or thousands of requests and receipts every day. So, maintaining a petty cash system is easier in a smaller business with limited expenses and reporting needs. However, for larger enterprises, relying on manual vouchers and physical safes/lockers causes a lot of chaos. 

1. Vulnerability to Theft and Misuse 

Unlike an automated system, a manual petty cash system lacks controls and security measures.

For example, if the custodian is not vigilant, employees can use the cash for personal expenses. Similarly, if the custodian gets stuck between multiple requests and receipts, it leads to oversight.

Moreover, the physical nature of cash in a petty cash box makes it an easier target for theft. Since there's no immediate digital record, anybody can steal money, which goes unnoticed for a while. This lack of transparency and a digital audit trail makes it difficult to identify funds misuse.

2. Poor Receipt Management 

Receipts are the document of proof for the expense. With the traditional approach, custodians have to chase employees for receipts. This results in incomplete or unaccounted-for submissions. 

Moreover, relying on the manual petty cash process makes it harder. The custodians have to manage countless receipts daily, making reconciliation tedious. Hence, you end up with misplaced, duplicate, or even damaged receipts. 

A common example of this issue is when a custodian receives multiple receipts and with an analytical petty cash book to maintain. It takes them hours to reconcile, report, and ensure accurate categorization. 

The worst is when it's time to report, and locating these receipts takes hours.

3. Chaotic Approval Workflow  

In smaller companies, getting approval for expenses is easy. But, in large enterprises, even small expenses can prompt approvals from various departments and stakeholders. This makes the approval workflow complicated and time-consuming. This delays the fund release, disrupting the workflow and reimbursement process.   

For example, imagine an employee who wants to buy a subscription for less than $300. In a big company, it will prompt approval from the manager, IT, finance, and legal departments.  

All this back-and-forth slows things down a lot.

4. Internal Resentment

In big companies, there's tension between the finance team and other departments.  This issue occurs when employees can't access the funds and have to wait for approval. Such a delay disrupts the work or delays the reimbursement.

For instance, an employee needs to buy a subscription for work. But the delay in approval impacted the deadline and client relationship. This creates problems and stress between the finance team and other departments.

5. Branch-Level Petty Cash Management

Large enterprises use separate petty cash systems for departments at the branch level. This means that each department has its own petty cash fund to manage.

Managing small amounts of cash at individual branches is tricky. Employees misuse/steal the money as there's not much oversight. There is no visibility on how money is being spent. Maintaining funds for multiple branches becomes a headache. Also, departments find it challenging to request more funds.  

Reconciliation becomes challenging as the finance teams have to chase branches for complete information. This leaves a lot of loopholes for employees and branch custodians to misuse petty cash.

6. Tedious Reconciliation Process

Reconciliation ensures that the petty cash fund's balance matches the sum of all expenses. 

Manually, reconciliation in large enterprises takes weeks and is prone to errors. Moreover, when adding up expenses, the process is prone to manual errors, which are hard to identify and correct.

For instance, the custodian overlooks a receipt. This mismatch between the recorded expenses and the actual cash on hand can take him weeks to spot errors. 

7. Low Visibility Over Expenses

Traditional petty cash systems lack real-time data. At any given point of time, the custodian is unaware of the fund's current status. This lack of visibility delays financial decision-making. For instance, it can take weeks before the custodian realizes that the petty cash fund is running low. This can lead to temporary cash shortages for essential expenses.

The absence of a clear record makes it slower to notice problems and reconcile the cash. Moreover, transactions and expenses are recorded on paper, which leads to further errors. For example, when an employee uses petty cash to buy office supplies, there will be a delay until the expense is recorded.

Similarly, when many employees spend money simultaneously, tracking them in real-time is tough. This lack of transparency allows employees to misuse petty cash for personal expenses.

How to Manage Petty Cash Effectively With Pluto? 

To overcome the challenges described previously, you can not rely on any automation tool. Instead, you need a product that is tailored to your specific needs. While many tools can assist you in digitizing petty cash management, Pluto goes the extra mile.

With Pluto, you no longer need to maintain a physical safe or countless vouchers and receipts. Pluto records every transaction in real time and gives you visibility at each step. From receipt to reimbursement, you manage everything with complete control and clarity.

Unlimited Corporate Cards

Pluto enables you to issue unlimited corporate cards, simplifying petty cash management. It eliminates the need for physical lockers or safes, promoting smoother cash flow. The availability of unlimited cards allows you to replace shared credit cards. This enables the use of cards for even small petty cash expenses. 

Finance teams get full control and visibility over each petty cash expense in real time.

Employees can either swipe the cards for a seamless process or withdraw cash from ATMs. Every expense made with the corporate card triggers an approval workflow. It prompts employees to add receipts and managers to approve expenses. They can then add the receipts simply via WhatsApp and get reimbursed without any delays.

With all the data consolidated on a single platform, reconciliation becomes easier. This simplified process eliminates the need for a dedicated custodian to manage petty cash.

Not only do you get more control, but you save money with visibility at each step.  

Budget Control

Pluto allows you to specify limits for corporate cards issued. This ensures employees stay within budget. 

When the spending exceeds, employees can request more funds. The budget expands on the manager's approval in seconds, allowing for necessary spending.

Administrators can also issue zero balance cards. These cards with zero balances prompt an approval request for each expense. This approach ensures budget control without causing any delays or resentment.

Easy Receipt Management 

Pluto simplifies receipt management thanks to its seamless WhatsApp integration. 

Your employees can upload receipts via WhatsApp, which are recorded in real-time. The custodians no longer need to run after employees for the receipts.

However, Pluto does more than just store receipts. It extracts vital information through OCR, including vendor names, amounts, and GLs. As a result, your accounting team spends less time on manual tasks like creating logs.

Approval Workflow  

Normally, getting approval for expenses can involve a lot of back and forth. But with Pluto, you can set up custom approval processes to make the process smoother. 

When an employee uploads receipts, Pluto automatically starts the approval workflow. It notifies the custodian and managers to approve the expense, removing the friction.

The reimbursement process accelerates without any compromise on efficiency.

Further, Pluto uses OCR to detect duplicate receipts to avoid dual payments and fraud. This makes it easier to double-check expenses and approve the legitimate ones. 

Digital Expense Report  

Pluto offers digital expense reports that compile data from all the receipts. 

The report simplifies the task for your finance teams to see how each branch/department is spending. It enables them to make adjustments to policies and procedures as needed.

For instance, a company has small office supply purchases spread across various departments. Pluto's real-time visibility and report help to locate these costs. As a result, finance teams can reconsider and promote bulk purchases for cost savings. 

With Pluto, the custodian gets complete visibility into the expenses and the available funds at all times.

Close Books 10X Faster  

Pluto simplifies the process of closing books. 

Since employees can submit receipts directly through WhatsApp, custodians don’t need to chase employees for receipt submissions. This enables you to close the book 10X faster by accelerating the reconciliation process.  

Pluto records all transactions in a centralized digital platform. This streamlines audit logs and eliminates the need to maintain physical records.

With its OCR-based receipt retrieval, finding specific receipts and information becomes more effortless. This simplifies the reconciliation process, making the entire book-closing process faster. 

Replace Petty Cash With Corporate Cards

Small expenses and cash transactions can not be removed. However, finding an expense management tool can make petty cash management simpler. 

Stop relying on manual traditional processes to manage petty cash. Choose Pluto to replace your tedious petty cash books and vouchers with corporate cards. 

Sign up today to digitize your petty cash for complete visibility and control.