You know that making the move to automating your AP functions is a no-brainer. Now here are the 10 factors that will help you make your case.
There’s been a sea change in the way companies view the need for newer technologies and that includes automating so many of what are considered back-office functions, those that traditionally have been viewed as cost centers rather than as strategic assets. More than ever, businesses understand the need to create more and better efficiencies, increase accuracy, and reduce costs. This is especially true in the finance functions.
That’s why you should check out The Definitive Guide to AP Automation, an e-book from financial process automation solution provider, Corcentric, which explains the many aspects that make AP automation such a transformative technology. From explaining the technology itself to exploring the ROI, the Guide is a valuable resource for those either thinking about or actively exploring finding and implementing the right solution for their company.
10 factors that make the case for transitioning to AP automation
- Easy supplier on-boarding – Once suppliers understand how easy the process is, how it saves them money, how they can have full visibility into their invoice and payment status, and how it reduces disputes, they are more than willing to transition to this technology.
- Better handling of paper and virtual invoices – Regardless of how much you may want your suppliers to be part of the digital revolution, some will still insist on sending paper invoices. But instead of dealing with them yourself, today’s AP automation solution providers will scan these invoices and capture data so that you will still receive the final product as an e-invoice in a common format.
- Low-risk investment – This is no longer an emerging technology. AP automation has been in existence for a number of years and has proven its value and efficacy to a wide range of businesses. Today’s technology is tested and proven. And it’s extremely cost-effective.
- Greater visibility into cash flow – In order to control cash flow and manage working capital, you need to know your liabilities at any given time. That knowledge gives management more strategic control over their payables and allows for decision-making based on accuracy rather than intuition.
- Cutting costs – Doing more with less is one way to cut costs. By eliminating the cost and time of dealing with paper invoices, one FTE can go from processing 1,000 invoices/month to 5,000/month. That’s a significant cut in overhead.
- Easy, accurate payments – Rather than limiting the format of payment, automation allows suppliers to be paid via ACH, virtual credit card, or traditional paper check. Greater flexibility and confidence in the timeliness of payment helps maintain good supplier/customer relationships.
- Faster ROI with today’s cloud-based technology – Today’s cloud-based SaaS solutions are relatively quick to implement, need no hardware, easy to use, and require minimal interaction with your IT department. These factors enable companies to begin to realize a return on their investment usually within months of implementation.
- Ensures stricter external compliance – When it comes to audits and compliance with SOX, SEC and other financial regulations, accuracy in record-keeping is key. Automating accounts payable not only enables internal and external stakeholders to track approval processes, it also enables auditors to view clear audit trails and compliance.
- Getting C-suite level buy-in – CFOs are always looking at the bottom line. An in-house solution that would require hardware and customized software would end up being a capital expenditure while. Cloud-based solutions can be classified as an operating expense. And the minimal IT involvement also is a selling point.
- AP can finally be the strategic player it deserves to be – There’s undoubtedly a hidden goldmine of talent in your back office workforce. But it’s hard to recognize them when their time is spent on low value-added tasks like keying in and filing invoices, tracking them manually, spending time chasing down approvals and handling calls with suppliers looking for payments. Automation will free up these valuable resources and allow them to contribute to tasks that will help your company grow.
Download the Guide today for more information on the benefits of AP automation.