The accounts payable department plays a crucial role in an organization’s financial success. The AP team ensures invoices are paid in a timely way, helps maintain vendor information and relations and provides pertinent financial data to the C-suite. Handling these tasks manually is time-consuming and leaves room for human error. Discover seven smart reasons to automate accounts payable in 2019.
Manual invoice processing is a time-consuming process that requires ongoing attention to detail. Rushing through this detail-oriented work can lead to errors that cost the organization money and its reputation. Automate accounts payable to reduce the time it takes to enter and maintain data as well as process invoices. Time is money and this is a way to increase working capital in the future.
Consider the cost of missing an invoice payment or paying a supplier late. In some instances, the company might pay a steep fine for late payment. In others, it can damage the relationship with the supplier and even lead to its termination. AP automation keeps track of invoice management to avoid late payments. And the AP team can analyze vendor contracts to determine if early payments could help save the company money. Detecting these money-saving opportunities makes AP automation worth the investment.
To err is human and inevitable, even when an organization hires top talent. People make mistakes and sometimes they can be expensive. Plus, the need to deliver perfection puts pressure on employees. The implementation of efficient AP automation solutions minimizes the errors made. And the AP department employees enjoy greater job satisfaction, which encourages loyalty and a positive work ethic.
Access Essential Financial Data in Real Time
Cloud AP solutions are becoming the top choice for many organizations because everyone can access key financial data in real time. Invoices can be reviewed and approved regardless of the time or location. Instead of having an invoice sit on someone’s desk for days awaiting approval, the tasks can be done in just second online. Plus, the C-suite can instantly review the latest financial data to improve and streamline overall operations.
Mobile devices have increased the number of people working remotely, whether they are doing it full-time or part-time. Employees on-the-road can work as they travel and stay in hotels after meeting with clients. And some employees work at home or in other locations. Remote working opportunities are supported by cloud AP automation, which encourages collaboration – even if the company finds talented team members in different countries. Everyone can work together seamlessly, regardless of the time or locale.
Transform the AP Department into a Strategic Partner
For decades, the AP departments was tucked away in the shadows of the back office. Now they are emerging as strategic partners with the C-suite. Instead of spending time on mundane tasks, the AP team is analyzing pertinent data to make money-saving recommendations to benefit the organization at large. As a result, AP department employees have a more meaningful career experience.
Keep Up With the Competition
Any organization that did not automate accounts payable in 2018 will be left behind in 2019. Businesses are rapidly adopting these technologies and realizing the benefits of automation. As a result, they are operating more efficiently and have better cost-control than companies depending on manual AP processes. Adopting AP automation helps companies keep up with – or surpass – the competition.
These are just seven of the many reasons companies need to automate accounts payable in 2019. As the C-suite makes its new year resolutions and creates a plan for 2019, it’s time to include an investment in cutting-edge technology to help the company reduce costs, improve financial control, and boost the bottom line.