Save the Environment: Go Green in Accounts Payable
Every year on April 22nd, the entire globe celebrates Earth Day. Individuals go out and plant trees, and different companies pledge how they are going to be more conscientious of the Earth. One easy way that your company can do your part in the effort to save the environment is by switching your accounts payable department off paper and onto an enterprise-level accounts payable automation solution!
Many companies still use paper invoicing for their processes and records. While convenient, the paper production process is slow, and highly damaging to the environment. Each year, over 30 million acres of forest are being destroyed to be made into paper. The wood is then sent to be processed in pulpwood plantations or paper mills that overtake and endanger natural habitats. And when the paper is done being used, most of the time it ends up in landfills or being burned, where it releases methane gas as it decomposes.
While getting rid of paper completely is not realistic, your AP department can easily do their part by making the switch to electronic invoicing. With the right accounts payable invoice automation solution, complete with a supplier portal to encourage your suppliers to make the switch to paperless invoicing, you can reduce the amount of paper the AP department to basically none at all!
Additionally, the right solution will also help your company switch to paperless payments. The best solution will have a variety of payment options – ACH transactions, wire transfers, or virtual cards such as American Express P-cards or Mastercard P-cards.
In addition to these improved methods of payment, electronic payments also make it easier for Accounts Payable departments to take advantage of discounts offered by suppliers. If a supplier offers an early pay discount, where (for example) a small percentage of the invoice is taken off if the bill is paid earlier through an electronic payment method, both companies can benefit. Without an electronic payment method, this concept would be extremely difficult; with it we have another option for buyers and suppliers to find a payment relationship that works best for them through dynamic discounting.
Doing your part to help save the environment can be as simple as switching to paperless invoicing processing and electronic payment – not to mention doing these things can save you and your company money in the long-run.