“According to the “2020 State of Accounts Payable Report,” Respondents indicated that on average they are using electronic payments to process their payments 56% of the time (vs. 52% in 2019), compared to paper at 44% (vs. 48% in 2019).” – Sush Koka, Basware
When it comes to payments, the last thing you want is delays, duplication, fraud, or validation issues – all of which cut into profits. An automated payment solution reduces risk and builds certainty by providing efficiency and visibility. Your payments process becomes a strategic function for better supplier relationships and improved cash flow.
A completely automated AP system is a wonderful thing to experience. From invoice intake to routing, PO matching, approval, and timely payment, the entire AP function becomes a hands-off operation. The accounting team has more time to attend to more important needs, such as strategic planning, instead of putting out fires.
Automation is Trending
Industry trends show automated payment processing improves business efficiency and profitability. Finextra noted, that in 2017, “51 percent of organizations rate cost savings as the top benefit seen from electronic payments. A study by Spencer Commerce concluded that automated payments offer cost savings of 90 percent in accounts payable processing over manual processing. Savings on storage costs over 10 years amount to 67 percent. Put simply, cheques and manual payment processing are expensive.”
When COVID hit, companies with outdated manual processes suffered additional setbacks. PaymentsJournal reported, “One of the most significant takeaways from the pandemic and its impact on our industry was how exposed businesses were to error, fraud and inefficiencies when relying on outdated, manual payments systems.”
Payment Automation Benefits
Payment automation removes manual activities from the final step in the AP process and produces better Key Process Indicators (KPIs):
- Decrease the AP cycle – Faster payment improves supplier relations and takes advantage of payment discounts.
- Reduce transaction costs – Electronic payments are cheaper to process than paper checks.
- Prevent fraud and secure sensitive data – Paper checks are more susceptible to fraud attempts.
- Reduce human error – Manual transactions are more likely to produce errors and duplicate transactions, and overpayments.
- Improve transparency – Electronic payments increase your ability to track and analyze financial data to better understand, predict, and forecast cash flow.
- Provide a better supplier user experience – Automation permits your organization to provide suppliers with real-time visibility into transactions and shorter payment cycles.
The Complete Billing Cycle Solution
To fully automate your AP process to include payment processing, work with a professional who understands your industry requirements and has the experience in automating the entire AP lifecycle.
NEdocs has been providing AP automation solutions for many years. By adding our automated payment processing component, you can turn your AP department into a profit center that automates a variety of payment options, including checks, ACH, and credit cards. Our secure, fraud prevention service contains an integrated payment portal that provides accurate reports and eliminates the manual handling of weekly payments or “check runs” that you experience today.
When early payment discounts and rebates are offered, you can turn your AP Department into a profit center rather than a cost center! Robust reporting, and KPI’s enhance the visibility to daily processes, potential bottlenecks and provide the measurement tools required for enhancing your efficiencies.
For further information about adding automated payment processing to your organization, schedule your free AP analysis today! You’ll receive expert, customized recommendations based on your volume, needs, and budget. You can contact our experts online or simply call us at (603) 625-1171.