The Complete Approach to Accounts Payable Automation
When companies implement accounts payable automation, there are a number of substantial benefits they start seeing almost immediately in the areas of financial analysis, relationships with suppliers and better management of AP processes. In addition, they gain the ability to comply with legal and tax requirements internationally, while also maintaining better overall B2B relationships.
A Passive Approach
Although some electronic invoicing solutions are quite capable of touching on all of the AP automation goals, many are only focusing on some specific areas and neglecting others. If the EIPP solution offers strong capabilities in the area of AP workflow and general invoice receipt, but ends up only glossing over processes that tend to be more specialized, the company could be left in a position of having to continuously use manual processing. In some cases, they could even find it necessary to use third party providers to take up the slack. This often occurs with processes that are data-driven and highly sensitive and that are not properly handled.
In some cases, when companies try implementing Accounts Payable Automation, they choose mainstream software tools that are designed for meeting only some of the transformation requirements, such as tools that only eliminate a need to use paper or that only facilitate EIPP. Although those are valuable solutions, they only make up a small part of efficient AP Automation, without fully realizing all of the possibilities.
Full Approach with Suppliers Onboard
On the other hand, when a company transforms its entire AP operation completely and includes all of the main processes across the life-cycle of all supplier payments, overall success is more of an imminent possibility.
An integrated approach to AP automation can help connect and control all of a company’s core E-invoicing processes, especially in any organization where a solution may have been implemented that only succeeds at eliminating paper. In these cases, what is really needed is an approach that focuses on safeguarding all financial data, as well as securely controlling all of the company’s EIPP operations.
5 Compelling Benefits of AP Automation:
- Better management of AP processes
- Better handling of suppliers
- Increase in controlled payments via electronic invoicing
- Financial analysis and reporting improves
- Dynamic Discounting can improve cash flow
Innovative companies who have implemented with a full AP Automation solution have found that it significantly reduces the workload of their staff and allows them to switch their focus to handling important tasks that are much more strategic to the company as a whole. It also allows the company to secure and maintain more fruitful B2B relationships.