Are you still on the fence about getting a purchase to pay system? That’s understandable. There’s a lot of information out there, and it’s easy to get off in the weeds.
Sometimes it helps just to take a step back and simplify things. Here are 7 reasons why purchase to pay automation is really a no brainer.
1. Improved cash flow
By using automated purchase to pay (P2P) systems to better manage indirect spending many organizations are saving between 2% and 12% of their non‐payroll spending. P2P software provides them with better cash management capabilities and impressive earnings growth despite challenging market conditions.
2. Faster approval routing
The key to purchasing policy compliance is timely approval and feedback. P2P systems accelerate approvals by routing them across the organization via email to mobile devices and smartphones, providing line item approval capability as needed.
3. Streamlined buying processes
Are your employees wasting too much time and energy requisitioning? P2P systems support centralized or decentralized purchasing, providing several advantages when buying, often reducing requisitioning to just a few mouse clicks.
4. Simpler receiving
P2P systems make the receiving process much easier by automatically reminding requisitioners to receive goods or services before accounts payable pays to the supplier. For end-user this process is just a click from a notification email but accounts payables team will immediately know the items were actually received.
5. Better tracking of PO and Non-PO payments
P2P systems can facilitate touch‐free PO invoice processing and enable users to manage by exception only. Non‐PO invoice information can be entered into the P2P approval workflow system by an outsourced mail room service, keyed from image or paper, received as structured PDFs, EDI, supplier portal or from other networks.
6. Expedited travel and expense
Automation can significantly lessen the time it takes to fill out and reconcile an expense report. The system also speeds approval time. Alerts can be used to educate users on company travel and entertainment policies. Reports can identify savings opportunities on hotel, flights and car rentals.
7. Improved visibility and reporting
Since all data is housed in a single P2P system, it's much easier to consolidate all non‐payroll spending and analyze it by user, supplier, commodity, and cost center or project. Automated systems provide a record of all outstanding commitments, which also increases accuracy of accruals.