Future-focused business leaders are continually seeking ways to develop products, deliver services, and engage with customers through innovations that were virtually unheard of just a few decades ago.
However, many companies are still using traditional methods to fulfill many of their internal functions. One example is the processing of paper invoices within accounts payable (AP) departments. Although manual processes are still quite prevalent among AP professionals, tech-based solutions are quickly gaining a foothold in how companies handle incoming invoices.
With the rise of automated AP technology adoption, companies can no longer afford to ignore opportunities to innovate that align with their suppliers’ expectations. An automated accounts payable system will help future-proof a company’s operations, enabling it to achieve long-term agility, compliance, efficiency, and profitability.
The Cost of Inaction in Accounts Payable
Sitting idle while your competitors innovate can significantly impact costs for any business. This is especially true in your accounts payable (AP) department, where relying on paper invoices to facilitate the approval chain can lead to a variety of costly issues.
For example, invoices that are manually keyed into your ERP system are at risk of human error, which can cause compliance problems or trigger a time-consuming audit. If the original invoice is misfiled or otherwise missing, confirming the invoice information becomes a bigger challenge. This can eat into your profits, if these delays result in missing early payment discounts.
Furthermore, paper invoices that are moved through the chain manually can become stuck on someone’s desk for days or even weeks, causing a process bottleneck that can result in late payments and potentially cost you more in interest or penalties. Consistently late payments will also frustrate your suppliers and affect your long-term relationships with them.
Many professionals call these results the compounding effect of not evolving, demonstrating how stagnation in certain areas of your organization can lead to negative consequences or missed opportunities over time.
4 key areas to future-proof your AP department
There was once a time when process and payment issues, often caused by manual invoicing, were commonplace. But not anymore – companies that ignore the widespread availability of cost-effective AP automation technology and continue to manage invoices the old-fashioned way are at risk of being left behind by their suppliers and customers.
However, many AP managers wonder which parts of their processes need improvement to stay ahead of the curve. We’ve identified four key areas you should prioritize when innovating.
- Centralized, digital invoice intake
Manually keying invoices into your ERP system and forwarding paper on through the approval chain is a thing of the past. Invoices should be digitally scanned and stored in a central cloud-based platform accessible only to relevant stakeholders.
- Automated approval routing
Business rules can be programmed into the system to prevent bottlenecks due to keying errors or compliance issues. Approvers get real-time visibility into the invoices for editing or approval, and an audit trail is automatically created whenever the invoice is viewed or “touched”.
- Integration with core financial systems
Automated AP systems that seamlessly sync with your existing ERP, accounting, and procurement systems reduce data silos and the need for manual reconciliations. This is especially useful when your AP system needs to include invoices from multiple physical locations and their internal systems.
- Actionable insights through AP data
Automated AP solutions provide valuable data that supports strategic decision-making. Track payment times, costs per invoice, exception rates, and other metrics to drive process improvement and measure results.
With these baselines in your AP automated system design scope, you can further tailor the details to meet your specific needs. For example, you can incorporate regional tax and audit requirements, include bilingual or multilingual communication functionality as necessary for particular vendors, and create industry-specific workflows for sectors such as construction, healthcare, non-profit, and others.
The more customized features you build into your solution today, the more you’ll be prepared for scalability and change tomorrow.
Begin the transition today with a seamless automated solution
Many department managers become hesitant when discussing tech upgrades, fearing that their entire process will need to be transformed all at once. In reality, getting started with AP automation is easy and can be done in phases without any IT system overhaul.
For example, you can start with the impactful step of replacing manual keying with digital invoice scanning. A second phase could involve policy enforcement to ensure that all invoices are compliant before they are processed through the system. Next, you can integrate the online approval system, eliminating the need for paper and fully reaping the benefits of a fully automated system. After that, you can make further customizations based on your industry, location, and more.
One of the most significant benefits of an automated accounts payable (AP) system is that it easily scales as your business grows, helping you meet your business goals and preparing your company for future success. Additionally, you’ll see immediate increases to your bottom line by saving on labour costs associated with manual invoice processing, reducing late payment fees to near zero, and cashing in on early payment fees.
When you’re ready to future-proof your AP department, a call to Ash Conversions will get you on the fast track to success.
Book your free AP automated solution demonstration from Ash Conversions to start future-proofing your business today!
The future is rushing toward you faster than you think. Schedule an AP automation demonstration with ACI to stay ahead of your competition and achieve greater long-term profits.
For over 40 years, we’ve assisted leaders from various industries in optimizing their accounts payable (AP) processes, helping their companies get closer to achieving their business goals. Our expert team supports you every step of the way, from design to installation and implementation, and provides ongoing aftercare support to ensure you have an optimal experience with our solutions.
For more information on how your company can benefit from a digital AP processing solution, schedule a demo by calling us at 1-800-719-9621 or by clicking the button below.
