Is there anyone who wouldn’t jump at the chance at improving corporate profitability? Unfortunately, many businesses are so focused on the day to day pressures and challenges that they neglect to take the time to look closely enough at how overall efficiency and profitability could be improved.
Why not start with improving the way your company handles accounts payable processing?
Here are three key areas where your business could see immediate results by automating AP Processes with the right technology.
Reduce Procure to Pay Processing Time
Processing all of those paper invoices is cumbersome and takes time. Too much time.
By automating your accounts payable process, you can take advantage of a substantial reduction in the time it takes to process your invoices.
According to a 2011 Aberdeen Research study, Best-in-Class organizations that have implemented automated accounts payable software process invoices in just 3.8 days, compared to the lowest performing companies at 20.8 days.
Yes, 20.8 days. What could your team do if it had an extra 17 days to do something other than process invoices?
With accounts payable automation, invoices are scanned, data is instantly recognized and reconciled against ERP entries, then routed automatically for electronic approvals – saving tons of time – and money.
By improving your processing time, you not only free up your staff to work on more pressing items, you also eliminate the errors that can come from manual processing – including lost invoices, paying invoices twice, or incurring late payment penalties.
The entire lifecycle – from procurement, to processing, to payment – is all easily and cost-effectively handled electronically.
Improve Data Management and Workflow
Paper invoices slow your office down – no matter how you try keep them organized. When data is captured and maintained in a secure database, completion of formerly manual tasks like data entry, faxing, copying, and routing of invoices becomes obsolete.
Approvals can be handled simultaneously and efficiently with automatic routing and processing.
Integrating your AP process with ERP systems like Microsoft Dynamics, Sage, and SAP enables access to information across your enterprise resulting in more accurate forecasting and cash management.
Anyone that needs access to data now has it – at their desk, remote office, home computer, or the poolside deck chair.
Capture Early Pay Discounts
In the same study, Aberdeen reports that through the use of accounts payable software Best-in-Class companies increase their early payment discounts by 4.1% year over year, compared to their lowest performing counterparts at just 0.5%.
Processing invoices electronically with greater accuracy and speed will reduce or eliminate late payment penalties and improve your ability to capture early payment discounts. AP automation can also help improve operational efficiency, vendor relations and customer service.
If your current accounts payable process is costing you more than it should, it is time to research investing in technology.
Many systems are available today to help small to medium sized businesses take advantage of advanced tools that Fortune 500 Companies have come to rely upon. You can increase your profitability – but only if you take a close, hard look at what is holding you back.
Want to read the Aberdeen study to see how your organization compares to Best-in-Class companies in these areas and others? Download Invoicing and Workflow: Integrating Process Automation to Enhance Operational Performance today!