It can be nearly impossible to run an account payable (AP) team in the modern age without automation. There are several reports and articles’ stating an automated AP solution is one of the best tools that you can leverage in order to make the departments tasks more efficient and easier to handle.
Automating your AP teams’ tasks is easier to handle when utilizing a solution. Some enterprises find they only require one or two employees working in-house to run the business effectively. Since AP systems help achieve all your requirements, you will not need extra help when the workload pressure increases.
If you have not started automating your AP processes yet, you must be wondering whether an AP system is worth it or not, plus how much could automation really change things. Here, let’s learn what your team could look like after implementing automation.
- Quick Data Entry
After automation is complete, it becomes easier to gather data into the system. No more entering data manually with all the potential mistakes that go along with it. In fact, the solution leverages image indexing technology to capture all details from an invoice. All paper files are easily scanned into the solution.
- More Than 90% is Automated
Mostly already automated teams follow the 90/10 rule. They become satisfied if 90% of invoices go through the AP automation system without external intervention. This gives employees the time they require to process the rest of the 10% more effectively.
- Less Errors
Entering data manually in any process is always filled with some human errors. Even capturing a simple image is not unblemished. But the type of image indexing which comes with an AP automation solution, you have more than 95% accuracy on every invoice. All invoices held within the solution are stored in an easily searchable and editable form which is more convenient to work with.
- Accelerate Invoice Processing Time
Automation increases the average number of invoices you process per employee, by at least five times. Meaning if you normally process fifty invoices each month, then an automation solution will help you to process those 250 invoices per employee. Thus, you are not only processing invoices more accurately with automation, but also processing those invoices rapidly.
- Check Fraudulent Activities
Automation can also help you to catch any fraud within the AP process, before it turns into an expensive issue. A built-in feature allows you to setup the solution to alert the AP department automatically when it discovers duplicate invoices. It will also pick up on any warning signs if someone is trying to deceive your organization.
- Saving Money
Automation aids you in keeping expenses down in many ways. As you are processing more invoices every month, the processing cost per invoices decreases. The solution will ensure you to make payments before deadlines in order to eliminate any late payments. So, when you can process invoices faster, there are chances for you to negotiate early payment discounts with your vendors.
- Easy to Access Information
Since the solution updates in real-time, you can view the present status of an invoice with just a simple click. This gives you an enhanced oversight of the present state of your accounts payable within your organization. You can easily look for records of your past invoices too. This appropriate and easily accessed documentation solution makes audits simpler to manage.
- Flexible Payments
Today, many organizations are willing to make payments with their business credit cards. Leveraging these cards can lead to cash rebates and can eliminate the risk of fraudulent activities. Looking for vendors who will accept this payment process can be quite daunting though.
It has been observed that more than 40% of organizations can make at least 10% of their payments on corporate credit cards. This number increases to nearly 80% when organizations start implementing automation into their AP departments.