How to Speed up Your Accounts Payable Processes
How to Speed up Your Accounts Payable Processes
Accounts payable automation software can significantly speed up your accounts payable processes.
Manual processing is inefficient and labour-intensive. It often requires processing in more than one location and uses large amounts of paper. It's time-consuming and can lead to mistakes.
There is another way, though. You can either streamline your in-house processes or outsource them. There are sound business reasons for doing this. Research by Zona suggests that most organisations that use invoice automation get their investment back within six months.
Options
Your options for improving your accounts payable processes include:
Having a solution installed on your business premises
Investing in a hosted system which you can access from anywhere
Outsourcing the full service to professionals
These purchase to pay solutions will help your business:
Minimise errors
Reduce processing costs
Maximise early payment discounts
Stop late payments and end late payment fines
Comply with legislation and reporting more easily
Reduce the costs associated with processing and storing paper documentation
Improve relationships with clients and suppliers due to better customer service
Facts and figures
Research suggests that only half (52%) of UK firms use accounts payable process automation. Bearing in mind that businesses can make savings of up to 80% by doing so, that means that the other half of companies are losing out.
Further statistics from the Institute of Management and Administration (IOMA) suggest that companies that do not automate their invoice processing spend around 7 processing each payment. When processes are automated, this drops to around 4.20, which is a saving of about 60%!
For many companies that implement automation, these savings are reaped within just one year.
These savings might seem like small amounts but you'd be astounded at how they add up. For example, imagine it costs your firm 7 to process each invoice and that you process 50,000 invoices per annum. With this 60% reduction through invoice automation in mind, your business could save up to 210,000 every year if not more.
Automated payment benefits
Benefits of automated payments include:
You'll have a better overall view of your purchase to pay process as a whole
You'll be able to track transactions more accurately
Manual errors will be minimised
Your systems will be significantly more accurate
You'll be able to produce accurate, up-to-date financial reports quickly and easily
It will be much easier for your company to comply with legislation and standards
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