While the majority of companies are still relying on manual procedures for Accounts Payable (AP) invoice processing, technology is driving many organizations to implement automation as a part of their AP strategy.
The need for real-time data is the top pressure for companies working with manual AP procedures. High invoice processing costs, exception rates, and missing invoices are some of the top pressures companies face with regards to AP processing.
Turning to Automation
Today, many companies are considering a switch to automation to eliminate the AP headaches. Faster processing times, invoice efficiency, reduced processing costs, early payment discounts, and improved supplier relationships are some of the top reasons for investing in an automated AP solution. Before switching to an automated AP solution, organizations must first set clear goals for all AP processes.
Although being able to process invoices faster is the common goal, efficiently managing large invoice volume and reducing invoice processing costs are the next priority goals. The core driver behind automating AP processes is cost reduction as the AP department wish to cut down processing times, strengthen relationships, and receive discounts.
Inefficient manual invoice procedures have bogged down many accounts payable departments. By automating AP procedures, companies can easily reduce operational costs, identify fraudulent invoices, avoid duplicate payments, expedite payment timelines, and leverage vendor discounts. Manual invoice procedures have restricted companies in many aspects of their day-to-day business operations.
Creating an effective, accurate, and repeatable process should be the primary focus for organizations evaluating AP invoice procedures. Also, matching mechanisms such as 2-way, 3-way, and n-way techniques will ensure that invoices are matched with purchase orders, and fraudulence can be eliminated completely.
By making the automated accounts payable solution a part of your organization, you can reap significant benefits for the years to come.
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