Although AP is not the key focus of CFOs’ day-to-day activities, leveraging the power of AP automation can turn this department from a cost center to a revenue generator. However, CFOs should consider four things to realize the full value that accounts payable software brings to the business:
Take advantage of early payment discounts
Savvy CFOs know that digitizing the invoice approval process saves time and money. Only 29 percent of organizations get benefited from early payment discounts. By adding automation to invoice approvals, you will be able to negotiate deals with your vendors. Paying invoices in exchange for a discount is what most suppliers will take on.
Payable data for effective cash management
It is better to use segmentation tools to optimize supplier payments. This would improve visibility over cash flow procedures and make the disbursement process more effective. Group suppliers based on the relationship to your business, the volume of payments and the purchase value. This enhances vendor relationships while speeding up the payment process.
Scalable process reduces hiring needs
AP department spends time in finding the right information. AP automation reduces manual work and allows CFOs to:
Process more invoices
Handle errors efficiently
Take vendor requests promptly
Manage supplier databases
Turning AP into a profit center
Around 84% of businesses that automate invoice procedures reduce overall payment costs. AP automation is more than just getting rid of paper; it paves the path for improved cash management and better workflow. Hence, automating AP processes using AP software can transform the organization’s crucial functions.
With an automated AP solution, your AP department achieves faster and precise invoice processing. No matter how you receive invoices, the solution captures, organizes, and delivers the documents along with the supporting content to the respective individuals for review and approval.