In an ideal world, your business would be fully automated. There would be no inefficiencies, few manual tasks, and certainly no financial risk. And it would cost next to nothing to maintain. Unfortunately, it is not a perfect world, and many companies feel the pain with all the labor that must be performed.
Consider how you manage Accounts Payable. How many manual tasks do you perform? If you could reduce or eliminate them, wouldn’t that lead to better use of your time? It could also add significantly more value, not only to your company’s bottom line but also to the morale and retention of your employees.
Getting Better All the Time
A better user experience, fewer manual tasks, less risk for data loss, and lower costs are all rewards of what is trending today in business – Continuous Improvement (CI) where you are always looking for better ways to do things. This concept can be applied directly to your Accounts Payable which is a vital part of your cashflow system, guarding your company’s daily outflows and ultimately long-term solvency.
Have you ever considered that there are ways to improve Accounts Payable and reduce the associated costs and risk? Here is a simple checklist of questions you should consider. Does your AP department…
- Route invoices through the post office?
- Perform manual administrative tasks?
- Work with paper documents and checks?
- Have limited visibility of your account data in real-time?
- Perform paper runs?
- Issue paper checks?
- Perform manual data entry?
- Open envelopes and file paper invoices?
- Track down payments manually?
- Search by hand through supplier exceptions?
These are only a few things that are robbing you of time and money every month. And, what if your competitors are smartening up to the benefits of automation and digital processing?
Time and Financial Costs of Manual Operations
With business, time is money, and that is so true about a company’s Accounts Payable department. Manually processing invoices and purchase orders requires more time than using an AP automation solution and increases the risk of errors, especially if the staff is tired or distracted.
According to Blue Creek Software, the developer of Vision360 Enterprise AP Invoice Automation solutions, “Traditional accounts payable processing relies heavily on invoices being shuffled back and forth between the finance departments and approvers. This back and forth causes a delay of invoices being approved and processed for payment in a timely manner resulting in higher than average processing costs, late payment fees and credit holds.”
CFO Magazine notes, “Benchmarking surveys help CFOs to understand how their various finance processes compare to other organizations in terms of cost-efficiency, labor productivity, activity speed, and error rates. There is a large gap between top performers and those companies that are spending the most to process accounts payable.”
“What drives up costs? The need for manual intervention is the main culprit. Labor costs typically consume 62% of total AP costs, according to the APQC (American Productivity & Quality Center) research. And what necessitates manual intervention? Data errors in purchase orders (POs), shipping or receiving documents, and invoices that require humans to step in.”
Finding the Right AP Automation Solution
To automate the many tasks your firm is currently performing manually, you need to streamline your AP processes for better efficiencies and cost-savings, while improving data integrity and reliability.
Look for an automation solution that offers a wide-array of time and money-saving benefits to your company, such as:
- Eliminate manual Invoice processes and data entry
- Speed up invoice approval times
- Prevent duplicate payments
- Gain complete visibility to 100% of invoices
- Manage invoices from anywhere
- Improve cash flow
- Reduce AP processing costs up to 80%
- Automatch invoices to POs
- Process All Vendor Discounts
- Eliminate error-prone processes
- Enforce security, fraud prevention and compliance
- Connect your payables process and ERP system
As a leader in AP automation, NEdocs brings you an industry-leading solution for Invoice Automation to provide these features.
When integrated with NEdocs’ AP Mailroom for invoice processing, your accounting department can lower costs and improve overall financial management. NEdocs offers the ideal combination of expertise and technology to assist you in streamlining your accounts payable procedures. As such, we specialize in giving something extremely valuable back to your business – more productive time!
For further information or to set up a demo, give us a call at (603) 625-1171 or Contact us online.