As you consider your expense reports and scaling goals for the new year, your company is probably looking for new ways to speed up processes and cut costs. Paperless accounts payable automation software is a guaranteed way to deliver a strong ROI along with seamless invoice processing. But how do you know if AP automation software is a good fit for your business?
There are common misconceptions that some companies are too small to justify AP automation solutions or that it is not worth the investment on a tight budget. The truth is that most businesses who are looking to cut costs and scale will benefit enormously from paperless accounts payable software.
This article will outline the problems that an AP automation solution will solve to help you meet your 2022 business goals. If these solutions are aligned with your priorities, then AP automation software is a perfect fit for your company.
Cut Costs with AP Automation Software
AP automation software cuts company costs to deliver a strong ROI. Have you considered the cost of printing paper invoices? Ink, paper, printer, and mailing costs stack up on top of labor costs. Manual data entry is also prone to error which can trigger overpayments, lost invoices, late payment fees, and duplicate payments that also cost your business profits.
According to Ardent Partner’s research, the average cost to process a fully-loaded invoice for those outside of the top 20% Best-In-Class is $17.61 while those who use AP automation solutions pay only $2.42 per invoice. Paperless invoice automation software uses Intelligent Data Capture (IDC) to quickly scan digital invoices and check for duplicate invoices or field errors. The AI technology that AP automation uses is simply faster and more accurate so your accounts payable department can focus on tracking KPIs that allow you to capture early payment discounts and have more visibility into cash flow.
Say goodbye to filing cabinets and hefty supply costs. When your accounts payable team goes paperless with AP automation, your office will feel more spacious, your cash management will be more on point, and your menial costs will be eliminated. If spend management and increasing profits are important to your business, then AP automation will be a great fit.
Do you want to see how much you could be saving? Try our Paperless ROI Calculator.
Improve Vendor and Supplier Relationships
Paperless accounts payable software improves vendor and supplier relationships by cutting invoice cycle times significantly. Have you ever sent late vendor payments that soured your relationship with a business partner? Slow paper processes frustrate vendors and supplies, while AP automation fixes the invoice approval process with built-in workflows so managers can approve invoices with a simple touch of a button.
According to Ardent Partners’ research, companies that utilize accounts payable automation reduce their invoice cycles to an average of only 3.7 days while all others without B2B bill payment automation take an average of 17.1 days to process an invoice.
Manual processes put your business relationships at risk because vendor and supplier invoices shouldn’t take over two weeks to process. Your business partners are a crucial component to your success and they should never have to hunt you down to be paid. When your AP team comes off as unorganized, it reflects poorly on your whole business. By automating B2B payments, your vendors and suppliers are more likely to be loyal to your business because they see that you value on-time payments. Electronic payments and digital receipts are also a huge bonus because they help your business partners stay organized on their end.
If you are looking to improve vendor and supplier relationships, cut invoice processing cycles, and solidify lasting business partnerships, then AP automation is a great fit for your business.
Tighten Security Measures with Paperless Software
Let’s be honest, paper processes and stacks of paper checks are a huge security risk. A paperless process with AP automation software keeps electronic invoices in a secure cloud-based system with internal controls to keep your accounting systems safe.
Potential fraud risks are eliminated with built-in features to zip files and limit access controls in your AP automation software system. Only authorized approvers will be able to view invoices so the entire automated process is safe and secure as opposed to a loose paper invoice floating around on an employee’s desk.
If your company wants to tighten its financial security measures and improve document management in 2022, then a paperless accounts payable solution is a perfect strategy for reaching those goals.
Scale with Digital Transformation
The future of business rests on digital transformation and if your company has goals to scale, then implementing software solutions will be crucial to your success. The market is demanding faster processes with more digital features to improve the customer experience and this trend is only projected to grow. If your business wants to tap into new consumer bases and keep up with your competitors, then digital solutions should be a top priority.
Accounts payable automation software is a digital solution that will give your business the foundation you need to grow and scale. AP automation software has the capacity to process more invoices than your current payable team, so as you grow, the software will support your business and integrate seamlessly with other digital solutions like HR automation or Enterprise Content Management (ECM).
If you have plans to scale in 2022 and beyond, accounts payable automation is a great fit for your business.
Are you ready to take your accounts payable department and entire business to the next level? Contact us today.