The Innovation of Accounts Payable

The innovation of Accounts Payable is what they’re calling it these days. Accounts Payable Departments are no longer being bogged down in endless piles of paperwork. And, that’s because so many companies are finally bringing their AP departments into the 21st century via Accounts Payable Automation.

The highest priority for many AP departments is bringing about a big reduction in AP and invoice processing costs. Of course, reducing these costs has always been high on the to-do lists of many Accounts Payable managers. Now it’s finally a reality for them as they all catch on to the value of Electronic Invoicing and Accounts Payable Automation. The world of business is more competitive than ever, making automation transformation a must just to be able to compete every day.

Obviously reducing costs is the top priority, but there are also several additional reasons to make AP departments more state-of-the-art. Making invoices and payment data more visible is also of significant importance for AP departments. They must establish baseline metrics so that they can be successful at determining the level of improvement that is needed. Once the clearer visibility has been established, then the AP department is positioned to have better insight into their daily operations and how to streamline them via E-invoicing.

Finally, AP departments are starting to realize how important a major improvement in AP analytics and reporting can be. AP managers are continuously trying to show their value to the company, that goes far beyond just processing payments and invoices. Their ability to deliver data accurately, timely, with reduction in the number of payment errors and earned rebates from Dynamic Discounting is paramount. Now AP department are getting a pat on the back for their major contributions to the company’s ROI.

When better data is paired with improved analytics/reporting capabilities, the AP department can be a major contributor to helping companies gain a better understanding of their overall performance, as well as their internal processes. And, this can contribute greatly to making much better decisions. So, the automation transformation is obviously here to stay when it comes to AP departments and it’s leading to better organization within the companies themselves, which is leading to bigger profits. Maybe they should just call it the “AP Automation Transformation.”

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