Accounts payable is all too often overlooked and considered a basic function that doesn’t require a lot of extra thought from an organization’s upper level managers. But CFOs can greatly benefit from choosing an AP automation solution to implement within accounts payable. It can streamline the entire process making it easier for everyone involved, from the organization to its vendors. Including an automated system that helps reduce errors and provides instant access to account information for those who need it.
The following 4 reasons can provide information on why AP automation should matter to CFOs:
Better Relationships with Vendors
When an organization uses accounts payable automation, it gives vendors more confidence in their transactions with that organization. Electronic invoicing means that accounts can be paid in a timely manner which leads to more transactions with those vendors and a better relationship overall. CFOs can use this information to gain insight on how to improve relationships with vendors by offering a peace of mind that payments are reliable and will be made on time.
Faster Processing Equals Greater Savings
When you use e-invoicing, it means automatic access to accounts payable information. This means you can pay accounts immediately which can also open options for discounts when accounts are paid early. CFOs should be aware of the many benefits that automation can offer to the processing end of accounts payable. When you have access to invoices immediately through electronic channels, that means that payments can also be completed automatically. Many vendors will offer dynamic discounting which benefits both parties and helps everyone feel confident about payments being made on time.
Provide Opportunities to Use Staff in More Productive Ways
When organizations use an accounts payable solution, it means that those employees who were previously being used for that process can be better utilized somewhere else. This not only saves money, but also saves time, and helps to reduce errors that are related to manual inputting of information. To a CFO, this means a method of better utilization of one of their most important resources, their staff, and allowing automation to take care of the more manual tasks of accounts payable.
Reduce the Risk of Audits
No CFO wants to hear the word audit, although it’s always a legitimate concern. But by using automation, the risk of audit can be reduced. When dealing with audits and compliance, it’s essential to have access to proof of when an account was paid, who authorized payment, and what the payment was made for. Using automation means that a literal paper trail is no longer essential because anyone who needs it will have access to the electronic information immediately.
CFOs are often thinking of the bigger picture when it comes to basic business functions. They may not concern themselves with the specifics of accounts payable, especially if they already have a system in place that works. But it’s important for the CFO of an organization to consider automation to make a working accounts payable even better. Through automation there are less errors and less chances for audit. Plus, the automation process provides a method of using resources in more efficient ways which leads to greater savings and a bigger profit for the organization.