8 Signs You Need Accounts Payable (AP) Automation

AP evolution: The changing perception

After years of half-baked attempts, accounts payable departments are finally making transformation a top priority. Gone are those days when the AP department was considered a tactical back-office function where organizations thought of them as cost centers and saw no competitive advantage. Instead, the Accounts Payable (AP) department has become an integral part of any company that needs to be competitive in today’s business world. In addition, they are responsible for making sure all financial transactions go smoothly and timely to not disrupt operations or hinder growth plans by ensuring nothing falls behind schedule.

AP Automation Trends:

Organizations are increasingly recognizing AP’s role in providing insightful analytical information. Nowadays, many companies (42%) use AP for problem-solving such as exception handling and credit management. As AP’s business perception improves, the focus and investment the function receives are bound to increase. Enjoying a high maturity vis-a-vis other Finance & Accounting (F&A) processes, the AP function also lends itself beautifully to digital transformation. But why is there a sudden shift towards digital transformation?

In a report produced by the Aberdeen Group, the best-in-class practices in AP — including automation — can reduce the Invoice processing time by 58% over the industry average. Moreover, Electronic invoice approval can trim invoice processing costs by $5 per invoice. Similarly, Efficient AP management can eliminate late payment penalties and capture 35% more early bird discounts.

Such an expanded scope of automated AP can dramatically cut down the resources required by the accounts departments besides improving speed and accuracy. Digitizing supplier management’s entire gamut, including order processing, accounts receivable, and e-procurement can be the next logical steps. All this will improve overall business efficiency, decisively plugging in the possibility of leaks and significantly saving cash for the enterprise.

However, transforming AP is not an easy process due to… Read more here: https://bit.ly/3ww2s8q