Benefits of Switching to AP Automation
Which is more valuable: time or money? Some might argue that time is money, making it more valuable as it contributes to both, while another might counter that it’s money itself that makes time valuable, leaving money with more value. Sometimes in accounts payable, it may feel like you have to choose between saving time and money, but best in class automation saves you both. Though the price and difficulty of switching to accounts payable automation can seem like too a cost, the pros of switching far outweigh the cons and you reap the benefits almost instantly. Regrettably, many AP departments continue to use manual or outdated methods to do their jobs resulting in increased costs, reduced productivity, costly errors, and high labor demands. Here, we’re going to highlight four benefits of switching to AP automation.
Improved productivity
With accounts payable automation, professionals don’t have to spend countless hours on menial tasks that could be done with the click of a mouse. AP automation software ensures that the approval and workflow process is electronic and thus faster and more convenient. High-level accounts payable invoice automation also eliminates lost invoices, errors, and unauthorized accessed. This means that you save time that would otherwise be spent locating invoices, correcting errors, and tracking potential threats.
Reduced AP-Related Costs
On average, regular paper invoicing costs a whopping $15.02 per invoice! By switching to a best-in-class invoicing system and electronic invoicing, your cost could go down to less than $2 per invoice. Additionally, the time to process a single invoice with paper invoicing solutions averages about 12 days. Best-in-class accounts payable automation software averages a 3-day turnaround, a whole week and a half less than paper invoicing. Plus, getting invoices processed faster also means qualifying for early-pay discounts, saving you even more money.
Prevented Errors
Manual invoicing methods are error prone. Even a simple math error can have a heavy toll on a company and cause significant financial loss. Plus, someone along the line, from a supplier to a clerk, may forget to fill out a certain box that keeps the invoice from being properly approved, processed, and paid. Often when errors happen, it’s the accounts payable department’s job to fix it, or have to reach out to a supplier to request a new invoice. This process is tedious and keeps you from finishing more important work. Accounts payable automation software reduces human interaction with invoices and mistakes become a thing of the past. High-level AP automation won’t even allow an invoice to be submitted unless all your necessary information is filled out. Then, if there are any questions or issues, they’re tracked on the invoice so when audits come around, it’s easy to see why a detail or payment was changed or why additional approval may have been necessary. Plus, accounts payable automation software promotes transparency, and fraud detection becomes simple.
Improved Supplier Relationships
One of the ways to efficiently level up your automation and reap all the benefits of switching to AP automation is by utilizing a supplier portal. This not only makes the work easier for you and your suppliers, but also helps you establish meaningful and long-term business relationships with suppliers. Fast and timely invoice approval and payment ensure you have a good standing with suppliers. Rather than calling and making inquires regarding an invoice, they’re able to see where their invoices are at in the process and address problems and make changes in real time, if necessary. That means you save time during the process and costs often associated with sending invoices back and forth when corrections are necessary.
While these are not the only benefits of switching to AP automation, they are some of the benefits payables departments appreciate the most. If you have questions regarding these benefits, or what other benefits you may be missing out on by not levelling up your automation, feel free to contact us!