AP automation software improves efficiency and empowers your team to focus on higher value goals by reducing your procure-to-pay processing time. Invoices are captured, processed, and routed automatically. In addition, you’ll be in a position to take advantage of various cost savings—including tax benefits from the IRS.
Section 179 of the IRS tax code allows a business to deduct the full purchase price of qualifying equipment and/or software, up to $500,000, that was purchased or financed during the current tax year.
The United States government created this tax incentive to encourage businesses to buy software and essentially make an investment in themselves. The tax code includes any “off-the-shelf” software that is available to the public, such as AP automation software. As stated in a Small Business Trends article, “This particular tax law is designed to benefit businesses, encouraging them to make larger purchases to expand their business.”1
Departments utilizing Enterprise Resource Planning (ERP) software have the unique opportunity to have an immediate impact on the bottom line by integrating Accounts Payable automation.
AP automation software not only speeds up the invoice processing cycle time, but also increases efficiency—resulting in less errors and misplaced paper invoices. Higher efficiency in your AP processes means reduced costs throughout your business. AP automation also helps improve vendor relationships by ensuring timely payments and building a positive brand for your company. All of these benefits equal a healthier balance sheet for your company next year and years to come.
With AP automation you can say goodbye to late payment penalties, because the software automatically routes your invoices for approvals and maximizes the opportunity for early payment discounts. The benefit is a reduced cost in penalties and an improved cash flow for your business.
There’s still time this year to purchase AP automation software and start saving your company time and money! By making this investment now, you’ll not only take advantage of tax savings opportunities, but you’ll be setting your business up for success for the coming year.
If you’d like to benefit from AP automation software and take advantage of the IRS tax code 179, please contact our AP Automation team today.
1Small Business Trends. (2013, Mar 23). U.S. Capital Equipment Tax Deduction Rule Pending [web log]. Retrieved from http://smallbiztrends.com/2013/03/equipment-tax-deduction-section-179.html.