Accounts payable automation is not a new phenomenon in the technology space. Yet, only 30 percent of the companies use this technology to be rewarded by reduced cost, increased efficiency, and more transparency throughout the payment process. So what stopped the rest of the 70 percent from adopting AP automation? For most of them, it is “inertia” or in other words “don’t fix what is not broken”.Every company does process their AP invoices so the thought of spending time and resources to improve the process is not considered. Wondering how AP automation could deliver ROI so quickly? It’s simple – through cost-saving, and here are five ways in which AP automation helps save costs:
1. Allow You to Go Paperless
Accounts payable is a paper-intensive process. Automation helps digitalize all relevant documents, subsequently eliminating the costs associated with printing, copying, storing and retrieving papers.
2. Minimizes Manual Efforts
Automation frees the staff from performing repetitive, time-consuming manual tasks, and eliminates the risks of manual errors. The time gained can be utilized on more profitable pursuits.
3. Speeds up Resolution of Issues
AP departments spend a considerable time handling exceptions, resolving disputes with suppliers. As it is easy to guess, these prove costly for any business. AP automation does away with the need for manual, time-consuming resolution of these issues.
4. Promotes Transparency
AP automation software allows you to keep track of all invoices from a centralized database, subsequently streamlining and speeding up the payment decisions and strategies.
5. Measures Your Progress
With AP automation, you can get a clear ‘before the implementation’ and ‘after the implementation’ picture, which enables you to measure your progress, quantify your ROI, and therefore justify the investment.
Being able to better manage the AP process can help companies achieve significant cost-saving. For businesses looking for ways to reduce invoice-processing costs, and to achieve greater efficiency and control over their payment process, AP automation is undeniably the ultimate answer. Want to know more? Contact us with all your questions.