Methods to reduce the cost per transaction and find better AP Solutions is a main focus of AP departments. At the forefront of these solutions are simply just space efficiency . Few people are aware that companies no longer physically store paper products related to accounts payable transactions.
Storage Cost Soar
Cost of real estate storage files can be expensive and an inefficient usage of space. For example, in a low-cost real estate market, the monthly rental cost per square foot for a commercial property is around $30. Even just using one square foot for physical storage of documents can add up. Companies allocate thousands of dollars to dead space like this and it is a waste.
In the past, AP solutions were seen as buying a document scanner to eliminate much of these storage costs. The drawback were that the paper invoices were still originated by a vendor or other customer, and then mailed to the company. This meant that storage space was still required, even at a reduced amount, until it could be scanned and disposed of afterward.
Even then, depending on how management trusted e-records it could have been hard for them to let go of papers. Managers would often decide to keep documents for up to a year before moving it onto digital storage.
Cost Savings Solution
With accounts payable automation, there is no paper generated by vendors and customers. Not only does this mean an office can function more efficiently in a small space, but management can have more room for more talented employees. Instead of wasting space on storage, companies can use it for more talent that can bring bigger benefits to the company than a heavy file cabinet.
Automation is a no brainer when it comes to saving space. But that is only one of many AP solutions offered by automating. Companies making processes more automatic can save cost, have room to bring on more employees and numerous other benefits. Let paper storage be a thing of the past.