Why Should You Automate Your AP Processes?
If you miss sending money to your vendor accounts, essential services can stop temporarily. This can not only prevent your business from running smoothly but can require you to pay additional fees. One way you can avoid such issues is by opting for automated accounts payable.
If you are not sure whether you should invest in this technology, read through the section below. It includes a discussion on the factors that make the investment extremely profitable.
AP Automation Will Save You Time
Automating your AP processes will speed up the entire system. All the unchecked and unapproved invoices hiding in the inbox or sitting on the desk will be processed promptly.
You will not need to go through every invoice, review them, and file them manually. The software will do the job on your behalf and much faster. It will also set up guardrails to ensure that the right documents reach the right people at the right time. Additionally, you will also be able to create reminders so that there are no delays or backlogs.
Recently obtained numbers suggest that high-quality AP automation software can reduce the invoice processing time by as much as 18%. Introducing AP automation to your company will allow you to eliminate the need for certain menial and unnecessary tasks.
Jobs like manual transfer of data between spreadsheets, searching for suitable team members manually for closing a deal, and looking for misplaced documents will become things of the past. You can use the time saved to focus on more meaningful jobs.
There Will Be More Savings
Vendors often offer discounts upon receiving early payments. They do so because getting early payments allows them to have some extra cash with them to run their respective businesses more smoothly.
As manual invoice processing is usually a time-taking method, businesses that rely on humans for doing the job almost never succeed in making early payments. AP automation, on the other hand, speeds up every step and allows business owners to pay vendors much earlier than the promised date.
AP Automation Decreases Invoicing Expenses
According to recent surveys, automation of invoice processing reduces invoicing expenses by 50 to 80%.
The moment you will start using AP automation software, you will get rid of the bug called human error. This will prevent the occurrence of events like missed payments, delays, and other such issues resulting from data entry mistakes.
AP automation ensures that you don’t need to employ more professionals when in need of processing more invoices. In other words, you will be able to keep the back-office team small and use the money thus saved for the growth of your company.
AP automation will end the need for printing paper and thereby eliminate the cost of storing physical copies of various documents. This, in turn, will allow your company to contribute to the welfare of the environment by staying green.
Final Words
If you opt for the right AP automation system, you will see your supply chain transparency increase significantly. Just by keeping an eye on the dashboard, you will get to review vendor and employee productivity and compare your business’s performance at various stages.
