In this era of digitalization, automation has become an excellent option for AP departments. Automation offers AP departments increased efficiency, cost savings, and greater speed in processing invoices. However, as AP automation grows so does the misconceptions and myths around it. These myths make some AP departments reluctant to adopt AP automation software. This article purposes to demystify to top five AP automation myths.
Myth#1: AP automation is Expensive
This is the most common AP automation myth. Many organizations affirm that the cost involved is the primary deterrent in AP automation. They have to incur expenses associated with software, IT professionals, training, and time spent in the implementation process. This is far from the truth.
AP automation is an investment that saves money in the long run. You may incur the huge costs initially, but with the automated system, you save significant amounts of money. Organizations that have implemented AP automation report huge costs savings in paperwork, labor, preventable errors, compliance, and increased efficiency. Research shows that processing an invoice manually is 50% more expensive than processing it electronically.
Myth#2: AP Automation has Numerous Security Risks
The many cases of high profile hacks and data loss have led many organizations to distrust technologies such as AP automation. Many businesses believe that AP automation is vulnerable to security risks ranging from data loss to unauthorized access and fraud.
However, this is a just a misconception. AP automation software such as iPayables have encryption protocols and password protection to ensure that the AP system is secure. In fact, old manual systems are more susceptible to security risks than automated systems.
Myth#3: AP Automation Cuts Jobs
Many people fear that technologies such as AP automation—just like robots— will replace humans in the labor force. They are worried that AP automation software will cut accounting jobs. AP professionals will be retrenched as AP software performs their roles.
AP automation does not cut jobs; it makes employees more productive in their jobs. Rather than spending countless hours and intense effort processing invoices manually, AP professionals can engage in productive roles that have a positive effect on the company’s bottom line. Automated AP systems will always need people but not to do labor and time-consuming menial tasks.
Myth#4: AP Automation Results in Loss of Control over AP
Some businesses believe the AP automation myth that it eliminates the human element in AP and hence results in loss of control over the process. They suppose that AP automation takes over the AP process and their control is limited.
This is not true. The opposite is true. AP automation software streamlines the AP process and gives you greater control of the process. You can generate reports, analyze data, and monitor progress easily and quickly. AP automation takes over the mundane tasks, and you get more time for strategizing. CFOs and other business leaders can access data in real time and garner useful insights for decision-making.
Myth#5: We are too Small or Big for Automation
Some firms contend they are too small or too big for automation. Small organizations affirm that they do not have many invoices to process and hence the manual methods work well for them. On the other hand, big enterprises suppose they have adequate employees to handle the large number of invoices they process.
Regardless of the size of an organization, it can benefit enormously from AP automation. Any business can gain from reduced costs, streamlined workflows, greater visibility, increased efficiency, improved productivity, and fewer errors. In addition, a company does not have to worry about integration with existing accounting systems. AP automation software integrates well with them.
In the finance sector, AP automation is a prominent and heated topic. Many businesses have acknowledged the enormous benefits of AP automation including cost savings, increased efficiency, and greater speed in processing invoices. Unfortunately, various myths, half-truths, and misconceptions about AP automation deters some organizations from implementing it. The above points show that using AP automation software such as iPayables AP automation solves most of your problems that are caused by manual AP practices. AP automation is an excellent option for businesses— regardless of size.