When you think about the ways to digitally transform your business, automating accounts payable (AP) processes is probably not a top goal.
But it Should be. How your organization purchases goods and services and pays suppliers has a huge and direct effect on company cash.
Today, with competition increasing due to the rise of the global economy and new data compliance laws, executive leaders want more transparency into procure-to-pay processes to better control spending and generate time savings.
Top AP Challenges & Struggles:
A recent report by PayStream Advisors found that many companies are hindered in their efforts to transform AP due to manual and outdated tasks. In fact, the top challenges are:
- Manual Routing of Invoices for Approval
- Majority of Invoices Received in Paper Format
- Inefficient and Manual Data Entry Processes
- Lost or Missing Invoices
- Limited Visibility Into Outstanding Disabilities
Steps to Modernize AP Processes
- Evaluate current AP Processes
- You do not know what you do not know. Take the time to evaluate current AP processes and define key performance indicators for the processes.
- Establish Measurable Goals for Process Improvement
- Goals will differ from organization to organization, but consider if your company wants to achieve more efficient invoice processing and disbursement, improved payable analysis, and more timely compliance with federal and state regulations - which are typical objectives.
- Select the Appropriate AP Automation Software Solution
- With many AP automation software solutions on the market, you will need to make sure the solution has the features and functions you need - and that it easily integrates with your current ERP system.
The Benefits of Automating Your AP Process
There's big cost and effciency gains on the table when you modernize AP processes and implement the right AP automation solution.
According to another report by Paysteam Advisors, AP department typicalls are able to process invoices in less than five days at a cost of $2.36 per invoice with an AP automation solution.
No automation? AP processes generally are six times as expensive and take nine times longer.
The bottom line? Today, you can't afford not to modernize AP.
Want To Learn More About the Benefits of Automating AP Processes?
To learn more about how AP Departments are transforming, download these e-books:
Want to learn more about the benefits of automating AP processes? Contact the experts at Business Solution Partners to help you select the AP Automation software solution that’s right for you.