Companies face a number of challenges from manual accounts payable processes including dependence on labor-intensive jobs, no backup of sensitive data or information, and delay in invoice processing. AP automation is the one thing that addresses all these issues single-handedly. And the best thing about AP automation is that it delivers instant benefits to the accounts payable process. For businesses having supplier invoices as an integral part of their cost like production, retail and distribution, AP modernization is crucial for two major reasons. Read on to learn why it makes sense for your company.
To Add More Value to Business
Modernization of manual processes will save your company a lot of time. With automation of admin jobs, valuable resources in your company become available to perform other tasks that add more value to your business. The scenario is quite different when using a manual process that involves a complete drain of resources from the mid-level up to the chief financial officer (CFO). The manual pulling up of purchase orders (PO) and matching the invoices against them is a tiring and time-consuming process. This works against the ultimate goal of companies that expect their teams to add more value to the organization through vendor negotiation, analysis and cost savings while keeping the team cost low.
Regulation and Accuracy of Finance
AP modernization benefits your business in many ways. There is a restraint on the approval process and a set level of expectation about the standard expenditure of invoices. In contrast, the manual accounts payable process has no such control over how individuals approve or code. With AP automation, you also benefit in terms of accrual reporting. Accruals for manual processes are pretty time-consuming, and are based on a combination of calculation and guesswork. There are fewer possibilities of errors in automated invoice processing. According to industry analysis, the estimated error rates are between 0.5 percent and 4 percent. This implies that out of 100,000 invoices processed in a year, only 500 to 4,000 of them are likely to have any inaccuracy.
Modernize your existing accounts payable by understanding your current process. Identify where you have problems and inefficiencies. And, if you want to switch to our advanced AP automation solutions, contact us right away.