Considering Accounts Payable Automation?
The Basic Framework
When you automate your accounts payable department, there are many benefits that come with it, such as improved cash flow, increased customer satisfaction, and higher company profitability. Despite many advances in technology, however, many accounts payable departments still struggle with labor-intensive responsibilities due to manual or partially automated processes. When it comes to submitting invoices, each supplier has their preference of format and method of submission, and this lack of uniformity ends up making more work for AP in the long run. However, with enterprise-level automation, various formats of invoices are submitted through the automation solution and turned into an electronic invoice. E-invoicing and high-level automation of manual processes result in an incredibly cost-effective solution for an organization as a whole. When considering accounts payable automation, finding the right solution that management agrees upon is critical for an AP department’s future development.
Capitalizing on the AP Process through AP Automation
AP automation should be approached from the perspective of being an investment rather than another added expense. An electronic invoicing solution that is the right fit for a business will effectively automate your current processes, while eliminating manual and tedious tasks to allow for more resources and time dedicated to higher-value tasks. When considering accounts payable automation, these are some of the key factors that should play a role in the final decision.
One of the best ways to achieve cost-effectiveness in AP automation is through the establishment of a uniform method of handling the original invoices. E-invoicing, or electronic invoicing, is one of the most effective ways to significantly reduce manually processed documents, which will result in reducing overhead and offers a consistent result. By taking each invoice and digitizing it, so payables only handles invoices in the online portal, e-invoicing allows for an increase in control and visibility for AP and higher-ups. Furthermore, accounts payable automation brings with it an easily definable invoice format that can be used throughout the company to identify errors and re-route for resolution.
With high-level automation, the process of inputting invoices can be incredibly strict depending on your organization’s rules. What this means is, that with an effective enterprise-level solution, your department will be able to create rules for when suppliers submit invoices—which is a huge asset to AP. A supplier won’t be able to submit an invoice unless all the assigned fields are filled out correctly. This cuts time handling exceptions down significantly, saving accounts payable time and money.
The Net Result
Automating the accounts payable process has long-term, positive effects on cash flow, profitability, customer satisfaction, and company success. The evident increase in efficiency and the best use of available company resources opens the door for expansion and growth. When considering accounts payable automation, it’s important to realize that it is an essential process for the company to function at an effective rate, as it enables inventory purchases, pays for service providers, and is a large determining factor of available cash. An accounts payable automation solution proves itself to be a tool that will enhance a company’s overall health and prosperity.