In this post we are discussing five ways to boost your ROI with accounts payable automation solutions. So, if you are thinking of automating your accounts payables then this post is for you.
Accounts Payable automation technologies have improved exponentially in sophistication, ease of use, and accessibility and are helping organizations remove labor-intensive, paper-based processes and adopt automated, streamlined invoice approval workflows to enjoy cost-savings and operational benefits. And with its proven track record, demand for AP automation is increasing from organizations across every industry.
There are a wide range of benefits that can result from implementing AP automation, including enhanced efficiency. Straight Through Processing technology, included in most automation solutions, allows for invoices to move seamlessly through the approvals process as they are auto-matched to pre-defined rules. Invoices that cannot be matched automatically are sent to an exception queue for processor intervention, but organizations that are using this technology are finding that most of their invoices can be processed with no processor handling. Another efficiency boosting technology is Smart Routing, which automatically sends invoices to the correct approver and is supported with alerts and reminders to approve invoices. Moreover, with invoice data accessible at your fingertips, it is easier to troubleshoot errors. Also, with automated invoice processes, organizations can process a higher volume of invoices without adding to staff. By having these technologies working simultaneously, invoice data can travel through the payables processes faster and leads to improved visibility, which can result in greater cash management.
With invoices moving faster through the invoice approval workflow, payments are made faster, which helps organizations stay competitive. Many suppliers offer incentives and dynamic discounting to organizations that are able to make payments early, enabling businesses to save money. Additionally, most AP automation solutions offer supplier portals, which allow suppliers to view invoice data over the Internet. As a result, invoice disputes are cleared up faster as organizations and suppliers access to tools that allow them to view invoices and submit additional documents for clarification. In many instances, portals enable suppliers to clear up disputes on their own as the portals are self-serviced.
SaaS-hosted AP automation solutions offer the greatest accessibility to users, as invoice data can be reviewed remotely via the Internet. Also, issues associated with invoice storage such as organizing and maintaining invoices to finding storage space are eliminated, as all invoice data is stored at a secure, redundant, offsite data center. Additionally, this means your organization will not need to buy, build, maintain, or support servers on-site and non-interrupted access to information can be guaranteed.
Rolling AP automation out to your organization may seem daunting and it may be difficult justifying the upfront costs in this era of strained budgets. However, organizations implementing AP automation typically experience positive results and return on investment quickly. In fact, most companies will be able to recoup their start-up costs within a few months.
By benchmarking your AP processing performance before and after automation will provide you with tangible evidence of automation’s effectiveness.
Automated processing systems will contribute positively to obtaining and retaining positive client relationships, increased turnaround time of services provided as well streamlined, automated processes that will promote an organization’s efficiency, and, ultimately, allow the company to decrease its operating costs due to the implementation of automated solutions.