Looking to optimize your Accounts Payable (AP) processes? Look no further. There’s a magic solution that not only improves your AP but takes all the manual effort out of your team’s hands so they can focus on strategy. So, what is this magic solution? Simple – automation. And it’s the key to achieving the best AP department ever.
1. Automate to Avoid Costly Duplicate and Late Payment
How much time has your team wasted with late payments or correcting duplicate payments? If your answer is anything greater than “no time at all,” you’re missing out. PO to invoice matching is often the main culprit of slow payment processes due to missing information. Automatic matching not only hastens this tedious process but also, by automating, data is continuously collected. This means that it learns the more it processes and eventually, you could achieve a totally hands-off AP.
2. Automate to Reduce Your Paper Trail
Paper is messy, disorganised, and not to mention pretty terrible for the environment. So, if you’re pushing paper across the desks of your AP department, the only thing you’re contributing to is confusion and negatively impacting the environment. Receiving and processing business documents digitally keep documents organized, secure and easily accessible.
3. Automate to Gain Better Visibility
Without visibility into your operations and finances, it’s hard to strategically improve anything. More so, it’s like taking swings in the dark and hoping you’ll make contact with something. Manual processes create siloes of information without one source to access and analyses your data. But automating AP drives data creation, automates the collection of that data, and informs analytics that you can use to locate bottlenecks, discern areas for improvement, and even set KPIs.
4. Automate to Take Advantage of Early Payment Discounts
As mentioned earlier, paper is slow. And with mistakes, it slows down even more. Suppliers could be left waiting for their payments – and if they wait too long, this could strain your relationship with them. Similarly, with slow AP processing comes missed early payment discounts. Automating payments gets your supplier paid quicker and allows you to capture discounts. It’s a win-win.
5. Automate to Set and Track KPIs
With automation comes data collection, with data collection comes visibility, and with visibility comes a way to track and measure AP’s key performance indicators (KPIs). Using your payments data, you can monitor performance on an ongoing basis and take into account KPIs such as days payable outstanding (DPO), processing costs, approval times, and early payment discount amounts.
Hoping to learn more about AP Automation solutions? Check out more here.