4 Reasons to Automate B2B Payments

Executive frustrated while crunching numbers

“It was the best of times, it was the worst of times,” is more than a Charles Dickens quote when it comes to antiquated, manual accounts payable processing. The difference between manual processes, such as invoice and document encoding and automation is truly a tale of two cities. One city as a grim reminder of an inefficient past; the other, a token of advancement for your business’s future. Let’s take a look at how automation can transform productivity for your AP team’s B2B payments.

Four ways your B2B processing can benefit from AP automation

  1. Cost savings
  2. Improves productivity
  3. Boosts the bottom line
  4. Enhanced fraud protection

1. Cost savings

“Annual B2B payment volumes in the US are estimated at approximately $25 trillion.” 

Cost saving benefits of adopting B2B automation include:

  • More flexibility with regard to the amount of time it takes your company to pay suppliers 
  • Less money and resources needed to correct errors made through manual entry 
  • Increased visibility over invoices

Team of women having productive meeting about automation

2. Improved productivity

Cloud automation allows AP teams to work individually or together, no matter where they are or what device they use. Other productivity benefits are:

  • Faster payment approvals
  • Secure storage of financial data
  • Financial insight through workflow data

Related: AP Automation Explained

3. Eliminate all manual data entry

Let’s face it, manual data entry is likely one of the least desirable tasks your AP team handles. Automating this mundane task with intelligent data capture, or IDC, could expedite your invoice process. Modern AP automation utilizes state-of-the-art technology called Intelligent Data Capture (IDC) to lift key data off of inbound AP invoices faster and more accurately.

IDC is growing in its automation capabilities, and can eliminate the need to manually enter valuable data from valuable documents such as remittances, purchase orders and bills of lading.

Related: Understanding Intelligent Data Capture 

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4. Enhanced fraud protection

It is common for businesses to fall victim to ransomware and phishing attacks as a result of the manual, and often paper-based, processes of capturing, approving and paying invoices. Adopting an automation process can decrease the risk of exposure and protect your business by:

  • Eliminating high-risk paper-based systems
  • Encouraging strict adherence to organizational and departmental processes

Even with an automated process, it is important that your AP team verifies changes in vendor payment locations, confirms fund transfer requests before processing payments and double sender information to keep your company’s financial data safe and secure.

If you’re ready to enhance your B2B payment process, the #paperlessguys are here to help. Contact us today to start your journey through data migration and AP automation.

Making the Switch: Integrating Cloud-Based AP Automation

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The coronavirus pandemic has presented unique workforce challenges in industries ranging from supply chain to fast food. In its wake, an increased necessity for secure, cloud-based document systems has also become evident. It is especially true of accounts payable departments who work remotely to ensure their team is safe while assuring the company’s creditors and suppliers get compensated on time.

Transitioning your company’s financial records from their locked file cabinets to electronic files can be quite the task, but your team does not have to do it alone. A systems integrator, like the paperless guys at Mosaic, can help put your AP documents at your fingertips with accuracy and transparency. But how do you objectively determine the best integration resource for your project? As with choosing any vendor, we recommend completing a full vendor analysis.

Understanding Your Scope of Work

To begin your search for the most appropriate integrator, you are encouraged to first be clear on your scope of automation. Know what you want to accomplish, when you need it taken care of, and how the integration will affect your teams. It’s also not a bad idea to reference your standard operating practices when unraveling your project’s scope. 

Be sure to outline your payable processes in steps as well as your accounting department’s invoice management and approval processes. Also, include any known pain-points to be addressed during this integration.

Let’s consider this the discovery process, during which you may also seek to develop a project timeline that could be adjusted in real-time. Accounting for system upgrades and human error will afford you additional time to implement the automation software you choose. Taking adequate time to define the scope of work and implementation process expectation before vendor selection could help eliminate costly mistakes later in the process.

Software automation process spelled out on wooden blocks

Selecting an Integrator

Getting the most out of your accounts payable automation software solution is critical to your company’s bottom line. Selecting the integrator who best fits your needs will help provide the framework to improve your organization’s expense-to-revenue. Once you’ve identified the scope of your integration process, research your vendor’s entire organization. Peruse their website for positive results. Pay close attention to customer success stories. Do not hesitate to reach out to other customers about the potential vendor’s professional services. To inquire about an integrator’s business and viability, our recommended questions include, but are not limited to the following:

  • How long have you been in business?
  • Do you have licensed engineers on staff?
  • What is your process for hiring and equipping new engineers as veteran engineers retire?
  • How will the integrator learn your business?

Deciphering the AP Automation Process

“Accounts Payable automation (AP Automation) refers to the technology used to streamline and automate accounts payable processes, removing manual tasks, and providing better visibility and control over important financial data.”

The Institute of Financial Management reports that 73 percent of organizations used AP automated software in 2020. Whether you use Microsoft Dynamics, Sage, Infor, Syspro, SAP, or any other ERP system, a viable accounts payable automation software should make it easier to retrieve data for reporting, reviewing invoices and purchase orders, and immediately knowing your company’s cash flow. AP automation tools synergistically improve invoice processing and the overall workflow of the accounts payable department.

Incorporating AP automation software is an ideal solution for circumventing common issues with manual accounts payable processes. Now’s the perfect time to switch if your company:

  • Processes 500 or more invoices per month.
  • Has more than 2 full-time AP clerks
  • Outsources your AP
  • Has too many late payment penalties
  • Misses early payment discounts

Take a look at our recent blog posts for more on the benefits of AP automation.

Stacks of paper in filing folders

Mosaic Can Help with Integration

Our accounts payable tools can help free up your team, and a path for you to continue growing your business. Together, we can facilitate business optimizations that yield results your entire company will feel. Our DocStar solution integrates with accounting software to: 

  • Stimulate productivity through intelligent automated capture of invoice data
  • Capture early payment discounts
  • Automate your company’s AP approval process
  • Reduce accounts payable processing labor costs
  • Securely store electronic versions of your company’s financial documents

Why You Should Tour our DocStar Tools

Give your accounting department a break! Decide to automate your AP solutions and allow your accounting systems to do the heavy lifting. Your team’s day-to-day objectives will shift, giving way to the capacity for more revenue-generating activities that your current process may not have room for. 

Accounts payable automation solutions with paperless invoice processing are critical in transforming your AP Department. Take a tour of our DocStar automation software to see how the integration of our software can make your team and stakeholders happy.

Start your journey to AP automation with us today.