Despite the increasing digitization of business today, the fact is that the Accounts Payable process for many organizations continues to drown in paper and inefficiencies. While other important business processes have been the target of automation in recent years, the AP process has remained largely behind the curve.
It’s easy to lose sleep over a process that suffers from a high degree of manual processing that is costly and slow, and often leads to inconsistent results and high error rates.
If you aren’t automating your AP you are missing out on substantial opportunity for cost savings and process improvement. Our own DocStar ECM AP Automation Software, for example, quickly, automatically and securely captures, processes, and routes AP invoices, reducing the time spent manually entering data and frees up your staff to focus on more important tasks.
Automation also works to reduce errors and double payments, capture more discounts, and provide greater visibility into the process.
Make a Difference – Now
CFOs facing many challenges today. Operating budgets are getting tight while the need for increased visibility into financial data is at an all-time high. Add to that the increasingly strict regulatory and compliance landscape and it’s no surprise that financial executives are eager to find new ways of automating and improving Accounts Payable.
Here are four ways that AP automation makes a difference.
# 1 – Reduce Procure-to-Pay Time
AP automation systems help accelerate productivity by capturing and routing invoices automatically – from one location. Invoices are indexed, classified, matched and directly transferred into your ERP system.
As a result, you eliminate the need for double data entry, reduce the time employees spend on menial tasks, and allow stakeholders to access order and payment information a lot faster. By handling an invoice once, you automate the review process – saving time and ensuring your workflow is handled efficiently.
#2 – Capture early payment discounts – and Increase Cash Flow
AP automation helps increase profitability by taking advantage of early pay discount incentives with greater predictability. Invoices are processed more quickly since all invoices and supporting documentation – including audit trails and notes – are stored in one database and accessed directly from your ERP system.
Your AP staff has access to all records they need to pay promptly and capture more discounts. The reduction and elimination of late payment penalties and improved cash flow overall are also compelling reasons to automate.
#3 – Improve Vendor and Customer Relations
A happy customer is a repeat customer, and the same holds true for the vendors who help keep your business running. AP automation helps ensure customer and vendor satisfaction by both fulfilling orders and managing accounts payable faster and with more accuracy.
Since information flows seamlessly between departments, vendor and customer inquiries are answered more quickly and more precisely. The result is that smaller issues are resolved before they become larger problems.
And when the entire procure-to-pay process is streamlined you benefit not only from increased profitability and a reduction in errors, but also from improved vendor and customer relations.
#4 – Gain Greater Business Insight
AP automation helps CFOs more accurately predict financial outcomes because it provides greater visibility into the process. Since all the related content is stored, searched, and accessed from one centralized location, financial managers have a more complete and immediate view.
You can quickly identify demands and constraints, and directly analyze processing performance over time. CFOs have a clearer picture of where they stand financially and AP professionals are better able to eliminate invoice processing bottlenecks, focusing on those accounts that need attention and improve cash management overall.
Don’t Miss the Automation Boat
CFOs and financial managers from all industries are moving quickly to automate. If you haven’t considered AP automation in the past because you thought it was too costly and complex, now is the time to look again or risk getting left behind.
It simply no longer makes sense to continue to rely on paper invoices and manual processing. Act now to take advantage of next-generation systems to reduce your AP operating costs, free up your staff for more valuable activities, reduce your procure-to-pay time, and provide greater insight into the financial health of your organization.
Want to learn more about AP Automation? Take our 4 Minute Tour and learn how you can start working smarter – today!