We often hear from businesses that want to improve their AP procedures that automation is “too expensive and takes too long to get running.” Accounts payable automation and enabling electronic payments on the proper platform really provide a low barrier to entry, significant rewards, and a short return on investment time frame.
Exclusive Industry Insights
Here is the insight from Andrey Korchak, Co-founder and CTO of Monite:
It’s not an obvious fact, but when you are processing your 1000 EUR invoice in many companies, you are actually spending 1050 on it. Of course, it’s a rough estimation, but you got the idea. And all because someone must receive this invoice, present it to a CFO, CEO, or Accountant, pay it, and then store and archive it in document storage. All these steps cost money and time. Payables automation solutions focus on bringing that extra cost to cents. Instead of manually pushing invoices through all the different approval and payment steps, businesses are using special software these days. It recognizes information printed on invoices and then takes all the steps automatically. For example, if the invoice comes from the CEO, it can be paid effortlessly and sent to an accountant for reference. But if it comes from the marketing department, CMO has to approve it first. And if it’s bigger than 10 000 EUD, team members must also present it to CFO. And so on. AP software does all these things automatically, significantly decreasing costs and increasing the speed of processing the company’s paperwork.
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Introduction
In doubt as to the degree to which your accounts payable technique is automated?
If you’re still not sure, have a look at our most recent blog post where we discuss the topic.
Accounts payable automation, also known as AP automation or invoicing automation, entails computerizing various AP-related assignments and processes with the objective to streamline tasks, increase output, and strengthen competitiveness. Here we shall be focusing on the AP arena of how it streamlines your business operations.
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Explore 10 leading strategies:
Many AP departments (about 33%) still rely on paper checks to pay invoices
Do your AP procedures make use of cutting-edge tools and established best strategies? Well, here are some healthy 10 tips to streamline your business via AP automation techniques that will make you a star of your field.
- Transfer money online
- Eliminate inconsistencies in the process of paying bills
- Strengthening Partnerships with Vendors
- Seek out discount rates for early payments
- Key Performance Indicators for Accounts Payable
- Payables processing should be automated.
- Schedule regular report runs
- Approach AP with more forethought and planning.
- Gain insight into the accounts payable process with the use of a supplier portal.
- Adopt a mixed approach to the office
Automated Invoice System
Do you have to manually enter data from invoices and assign them to appropriate categories?
This is correct for a substantial portion of American Treasury offices. According to research conducted by Ardent Partners, nearly half of all invoices are still handled manually rather than electronically. There is probably too much paper involved somewhere in a complicated payment system. Paper invoices are an easy place to start with automation and electronic invoicing. By automating your invoices, you may streamline the complicated procedure for handling payments.
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What is the most advantageous aspect of modern invoice automation? Remote approval is now possible! As today’s labor force evolves into more nomadic, it’s crucial to set up a system that lets people pay bills from any location they happen to be in.
Additional advantages include:
- Pay bills on the move!
- Disagreements can be discussed online and noted in comments.
- Full documentation of all approvals and actions taken
Payment Automation
Many businesses have been at a disadvantage because of paper-based operations for quite some time. When compared to their European rivals, American companies lag far behind. While we use electronic payments frequently in our personal lives, this trend has yet to catch on in business transactions.
AP departments can now issue electronic payments from afar and with greater efficiency thanks to payment automation. It also provides 24/7 access to billing details, making real-time tracking a breeze constantly changing and out of our hands, externalities like email phishing attacks and fake events are nevertheless unpredictable. However, we have complete agency over our responses. Finance departments that want to be ready for the future ought to prioritize AP automation since it helps them adjust swiftly to changing circumstances.
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The Beneficial Effects of ERP Integration
Is your present ERP meeting your needs?
The vast majority of people do (at least a little)!
ERP systems are powerful and versatile resources for companies. Business support, supply chain planning, supply chain execution, and merchandising are just some of the responsibilities that are simplified by their use. Invoice and payment management features may be included as well, however, they are more likely to be offered as a paid add-on.
However, if you want to automate your accounts payable operations, your ERP isn’t the way to go. In fact, taken by itself, it’s not even a great option.
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With the correct invoice and payment automation system, you can keep using the ERP tools you know and love while yet benefiting from the transparency and transaction security of a modern payments platform. Remote AP options are made possible by ERP integration as well.
[To share your insights with us, please write to sghosh@martechseries.com]
