A Guide to Understanding and Implementing Scalable Accounts Payable (AP)
When considering the adoption and efficiency gains possible with Accounts Payable (AP) automation software, results vary based on a company’s level of automation in the AP department. PayStream Advisors’ research indicates that the most innovative AP departments process invoices in fewer than 5 days at a cost of $2.36 per invoice, and capture 75 percent of available term discounts. AP departments on the other end of the scale (those running almost entirely manual processes) typically take 9 times as long to process invoices, at 6 times the cost—capturing only 18 percent of available discounts. Unfortunately, while the savings and efficiency resulting from AP automation are very appealing, they seem unattainable to many companies.
Some companies do not have the budget for a full AP process transformation, or they believe that their unique business environment would not be able to withstand the disruptions involved in software implementation. For these organisations, a more feasible goal is to adopt AP automation in a scalable manner with modular solutions. Beginning with the tool that meets their immediate process improvement needs, companies can still work towards full automation, but at a pace that suits their organisation.
The way in which a company begins its scalable automation journey will vary based on its specific business characteristics. Industry, revenue, and technical maturity all play a role, not to mention the unique environment and business structures within individual companies. Scalable AP depends on an understanding of the current state and an adoption strategy. With this knowledge in place, organisations can build a strategic, tailored, and scalable adoption plan that prioritises holistic AP management. The following report offers a look at current market trends around AP processes among North American businesses. It also offers a brief guide to beginning a scalable AP transformation, with respect to the unique requirements of the organisation.
Featuring insights on:
AP Automation Adoption Trends
How to Begin a Scalable AP Automation Transformation
How to Leverage AP Automation According to Current State Conditions