DIY Automation: Why an Enterprise-Level Solution is a Better Option
Many companies look at the upfront cost of switching to an accounts payable automation solution and shy away, thinking they will be better off on their own. Others believe there could never be a solution that fixes all their pain points, and that it would be better to keep their invoicing processes done purely in house. This results in highly customized DIY automation solutions that might not be maximizing your AP department’s productivity. While these solutions may be quite effective, they do not encourage best-in-practice and often limit the department’s ability to update and improve the invoicing process. It can be difficult to find an adequate accounts payable automation solution, especially if your department has a lot of complexities. However, there are enterprise-level solutions available that are built to serve large, complex organizations and processes. Here are three key benefits to switching to enterprise-level over DIY automation.
1. Complete control
High-level accounts payable automation solution is customizable and set-up to be unique to your AP department’s needs. This means that your entire process will be molded to what your company needs – whether that’s automated FTP, file upload, a supplier portal, or options in payment types. This level of control is only possible through an enterprise-level AP automation system, as it allows your department to oversee every step of the process. Additionally, with a best-in-class accounts payable invoice automation system, your department is able to track and control who can see and touch each invoice, making it a much more secure process.
2. Save Time
Enterprise-level accounts payable automation averages 3 days to process and approve an invoice automatically, with no need for anyone to check the invoice during the process until a manager is notified that it’s time for approval. While some internal solutions can also be very effective, the invoice is often still moved through its full process by AP personnel. This means if errors arise or inquiries need to be made to suppliers, the process is often very similar to how it was being handled before the automation. Switching to an enterprise-level accounts payable automation solution takes away the time accounts payable departments have to spend on an individual invoice. Instead, invoices can be tracked and corrected, if necessary, in real time, without needing to exchange phone calls or emails.
3. Save Money
Switching to an AP automation solution might seem like a waste of time and money, especially if your department is doing it all yourself right now. Let’s look at some numbers – CFO Magazine tried to determine the total costs to process paper through the AP department. Considering labor, overhead, and other costs, then dividing those costs by the number of invoices, they were able to put a price on how much it costs nearly 1,500 companies to handle each invoice. On average, a company will spend about $6 an invoice. Let’s say your department processes about 1,000 invoices a month – this ends up being 6,000 dollars just to process invoices. Comparatively, best in class enterprise-level accounts payable automation solutions bring the price down to less than a dollar an invoice – that is a 5,000 dollar difference each month, or 60,000 dollars a year! Plus, the time saved in processing invoices can also help your department qualify for early-pay discounts, or dynamic discounting.
DIY automation can improve your invoicing process, but it unfortunately often falls short in key areas. Utilizing an enterprise-level accounts payable invoice automation solution leaves control in your department, while increasing visibility and saving you time and money. For more information on what this solution might look like, check out https://ipayables.wpengine.com/e-invoicing/.