AP Automation gives your business the edge it needs.
How do you treat customers who always pay you promptly and predictably? What about those who always lag behind your AP cycle and sometimes force you to use cash reserves or credit lines to meet payrolls and other financial obligations? Perhaps you treat all of your customers the same regardless of their accounting practices, but how much more do you truly value the customer whose sales revenue you can always count on to be paid early or on time?
People intuitively prefer doing business with customers and clients who support timely cash flow through their efficient payment systems.
Streamlining your accounts payable processes through AP Automation services is one way you can make bill paying safe, simple and reliable so that your accounting team can focus more on core business needs. Not only will your books be better managed, your valued suppliers and vendors will appreciate the improvements in invoice processing. This consistency leads to better business relations and improved customer service.
Going further, qualifying for Cash/Net 10 discounts month after month can add up to very significant cost savings. Many manufacturers and distributors typically offer 1 – 3 % in discounts for expedited payments. Those companies who automate their AP systems to pay vendors within discount periods can have a significant competitive advantage over their slower paying competitors. Wider margins give you more financial flexibility. Remaining current with all of your creditors results in an improved credit rating and lower financing rates.
Processing and paying invoices equal direct labor costs.
Receiving, opening and sorting both postal mail and email combined with the tedious processes of data entry and approval submissions all add up to staff time, and time is money! The overall cost reduction and operational benefits are game changing once an AP automation & Invoice Processing system is implemented. Daily or weekly invoice processing no longer drags valuable staff away from critical financial management work. Vendors will receive timely payments that support their key work practices on your behalf, which ultimately supports your customers’ needs. Everyone wins!
How does AP Automation work?
You might be wondering how a third party can safely and confidently handle your protected AP documents. Essentially, you control everything except the tedious parts of the process. Quite simply, your suppliers send their invoices to a dedicated PO Box and email address. Our experienced staff will pick-up and pre-processes the invoices. This pre-process includes:
- Receiving, opening and sorting mail
- Managing incoming email
- Capturing invoice data
- Conveying image content through AP workflows
- Matching payables against purchase order and receipt data
- Integrating AP data with your ERP (Enterprise Resource Planning)
Systematizing and outsourcing these tasks enables your CFO and accounting team to focus on more value added activities such as capital financing or asset management. As organizations focus more of their resources on core business functions, they realize the real and often eye-opening value of AP invoice processing services to their bottom lines.
What about your organization? Are you ready to experience cost savings and better service through improved payment processing efficiency? Please give us a call if you’d like to discuss how it can work for you and your organization. (603) 625-1171