Maximizing Your Accounts Payable Process: Best Practices and Strategies for Success

To have a successful accounts payable process, it is important to implement best practices and strategies. This will help ensure that your AP process runs smoothly and without any hiccups that will prevent your company from growing and scaling. 

In this blog post, we will discuss some of the best practices that companies can use to improve their AP processes. We will also provide tips on how to go paperless and eliminate paper payments. By following these tips, you can rest assured that your AP process will be efficient and effective!

Prioritize Invoices By Due Dates

One of the most important best practices for accounts payable is to prioritize invoices based on due dates and payment terms. This allows you to stay on top of your payments and ensure that you are not missing any due dates or incurring any late payment fees. Prioritizing your invoices by the due date, also helps your accounts payable team keep organized and on track.

Go Paperless

Another key strategy is to work toward going paperless and eliminating paper payments. By embracing technology through digital transformation and automating your accounts payable process with cloud-based AP automation software, you can streamline your workflows, increase security and establish more internal controls.

Going paperless is better for the environment as it cuts down on office waste and your workspace will be less cluttered with stacks of paper

Going paperless is better for the environment as it cuts down on office waste and your workspace will be less cluttered with stacks of paper invoices on desks and overcrowded filing cabinets. A clean space allows for more focused minds!

Read more: Cloud vs. On-premises AP Automation: What’s the Difference?

Track Early Payment Discounts

In addition to prioritizing invoices by due dates, it is also important to track any early payment discounts offered by your vendors and suppliers. This will help ensure that you are maximizing savings and minimizing costs.

With an AP automation solution, your AP department can easily track early payment discounts without taking valuable time away from other tasks. Your AP software solution will process digital invoices faster than manual processes so capturing early payment discounts is a given. 

Read more: The Cost of Processing an Invoice: Why Paperless AP Saves Companies Money

Establish KPIs and Reporting Processes

Another best practice that companies can implement is to set up key performance indicators (KPIs) to measure the efficiency and improvement of their AP departments over time. This allows you to keep track of your progress and ensure that your process continues to run smoothly.

Accounts payable automation software offers greater visibility into AP KPIs and it makes it easy for your AP staff members to track the data.

Gone are the days of manual data tracking, with AP automation, your accounting team is empowered with easy and accurate reports. No more waiting until the end of the quarter to pull those metrics, you will always have accurate AP data with a few quick clicks.

Create Safeguards Against Duplicate Payments

To further optimize your accounts payable process, you should also consider implementing safeguards against sending duplicate payments. For example, you could establish rules around invoice matching or use automated systems to check for duplicates before processing payments.

This is another common problem that AP software solves. As invoices are scanned with Intelligent Data Capture (IDC), the software automatically checks for missing fields or duplicate invoices. You never have to worry about human error or faulty payments with AP automation because the software simply won’t move the invoice on to the next step of the workflow if it finds a duplicate.

Enhance Overall Security

Finally, it is essential to focus on increasing security and establishing more internal controls within your organization. By doing so, you can ensure that your accounts payable process are protected against any potential risks or vulnerabilities.

You guessed it! AP automation software is the key to enhancing your accounts payable process. Access controls, automated workflows, secure payment portals, and advanced data capture technology are just some of the many ways that AP automation is perfect for improving security in your AP department.

With a solution like this at your disposal, you can rest easy knowing that your accounts payable process is safe, efficient, and effective. And who doesn’t want that? So what are you waiting for? Start taking your accounts payable operations to the next level today!

Contact us to get started.

Looking to learn more about all things AP? Check out our Accounts Payable Glossary for the terminology you must know to stay on top of your efficiency initiatives.

Why Every Accounting and Finance Department Needs Accounts Payable Automation

To run a successful business, it is essential to have efficient and effective accounting and finance processes in place. Many businesses can improve their efficiency by introducing accounts payable automation into their finance and accounting departments.

AP automation refers to the use of software that automates the process of paying bills. This software can help improve workflows for everyone involved in the AP process, from the AP manager to the CFO/controller to the CIO/IT manager.

In this blog post, we will discuss some of the ways that AP automation can help your finance team run more efficiently and effectively.

How Can AP Automation Help Your Accounting Department?

One way AP automation can help is by providing better insight into invoices and payments.

With AP automation, all invoices and payments are stored in one central system on the cloud. This means that you can easily track what has been paid and what is still outstanding.

Another way that accounts payable automation can help is by reducing data entry mistakes. When all invoices and payments are automatically entered and stored in one central system, there is no need for your finance staff to re-enter data into multiple systems. This can help reduce the number of errors made when entering data manually.

Read more: Cloud-Based AP Automation: The New Normal in Accounts Payable

AP automation can also help by eliminating paper invoices and paper checks. With AP automation, all invoices and payments are made electronically. This means that there is no need for manual tasks like printing, signing, and mailing paper checks. This will save time and money for your business. You can also minimize late payments with faster invoice cycles that capture early payment discounts for more cost savings.

Read more: The Cost of Processing an Invoice: Why Paperless AP Saves Companies Money

Finally, AP automation can help by reducing the burden on the IT department.

When all of the data for your company’s invoices and payments are stored on one central cloud, the IT department can more easily manage and update the data.

This can help improve data integrity and reduce the IT department’s workload.

Read more: The Accounts Payable Glossary: Everything You Need to Know About AP Automation

How Will Accounts Payable Automation Software Impact Each Role?

AP automation software affects each employee’s position in the accounts payable department. Many employers avoid implementing the software for this very reason, but they fail to realize that AP software solutions actually maximize each role’s efficiency and directly contribute to your company’s growth.

Here is a brief explanation of how AP automation impacts each finance employee’s role:

AP Clerk

The AP clerk’s job is to enter invoices into the system, match them up with purchase orders, and make sure that they are ready for approval. With AP automation software, invoice data is automatically extracted from the invoice with intelligent data capture (IDC) so there is no need for invoices to be manually entered into the system. This will help the AP clerk keep the AP process running smoothly while avoiding costly manual data entry mistakes.

AP Manager

The AP manager’s job is to oversee the entire AP process. This includes approving invoices, ensuring that payments are made on time, and managing the finance staff. With AP automation software in place, invoices are automatically routed to the AP manager so they can approve invoices with a simple click from any smart device, even when they are on the go. This improved approval workflow will help the AP manager keep the AP process running smoothly and with faster approval times than ever before.

CFO/Controller

The CFO/controller is responsible for ensuring that the company’s finances are in order. With AP automation software in place, the CFO/controller can easily see what invoices have been paid, what invoices are still outstanding, and what payments have been made. This improved visibility will help the CFO/controller keep the company’s finances in order, avoid costly oversights, and maximize efficiency by tracking AP software KPIs

CIO/IT Manager

The CIO/IT manager is responsible for ensuring that the company’s IT infrastructure is up-to-date and running smoothly. With AP automation software in place, your company’s accounting department will benefit from heightened security, access controls, and built-in fraud detectors. These improved information security measures allow your CIO/IT Manager to have more internal control over the department by simply setting these features, rather than attempting to build them.

Overall, AP automation empowers your finance team to work more efficiently. With more increased visibility into KPIs and automated processes that eliminate costly manual tasks, your invoice cycles will be faster and cheaper than ever. Despite the common misconception, AP automation doesn’t eliminate finance staff roles, it just makes daily tasks easier and enables them for more impact on your company’s growth.

Our expert digital consultants at Mosaic can help you find an AP automation solution tailored to your needs and delivers maximum cost savings. We will also stick with you through the implementation phase to ensure each member of your finance team is properly trained on their new responsibilities. Contact us today to schedule a demo.

Purchasing Automation: Why You Need to Automate the Procurement Process

The procurement process is often fraught with inefficiencies, which can lead to wasted time and money. Purchasing automation can help improve the speed and efficiency of the procurement process, while also providing other benefits such as cost savings, improved vendor relationships, and increased control and visibility.

In this blog post, we will discuss why you need to automate the procurement process and how e-procurement software can help you achieve this goal.

The Traditional Procurement Process

To understand why you need to automate the procurement process, it is first important to understand the traditional way of running it. The typical procurement process includes requisitions, purchase order creation, invoice management, approvals, and making payments.

This process often includes repetitive and unnecessary tasks and forms that are ripe for automation.

For example, many businesses require employees to fill out requisition forms that must be approved by a manager before a purchase can be made. This process often takes days or even weeks and can lead to frustration and wasted time.

In addition, the traditional procurement process is often manual and paper-based, which can lead to errors and inefficiencies. For example, if an invoice is lost or misplaced, it can take weeks to track down and process. This can cause delays in payments and lead to frustration for both the vendor and the business.

The Benefits of Purchasing Procurement Process Automation Software

There are many key benefits of adopting e-procurement software, including significantly increased speed and efficiency, substantial cost savings, improved relationships with vendors, centralized communication, increased control and visibility, and the capability for real-time data reporting.

Increased Speed and Efficiency

E-procurement software provides a central platform for businesses to manage their purchasing processes. This can help streamline requisition forms, purchase orders, invoices, the approval process, and payments. By automating these repetitive tasks, businesses can save a significant amount of time and money.

In addition, procurement process automation can help businesses avoid mistakes that can lead to delays in the procurement process. For example, if a requisition form is filled out incorrectly, it can be automatically rejected by the software. This can save time and frustration for both the business and the vendor.

Read more: What is Sales Order Automation and How Does It Work?

Substantial Cost Savings

Another benefit of e-procurement software is that it can help businesses save a significant amount of money. By automating the purchasing process, businesses can eliminate the need for paper requisition forms, purchase orders, and invoices while also cutting down on late payments that come with hefty fees. This can lead to substantial cost savings for businesses.

E-procurement software can also help businesses negotiate better deals with vendors businesses can easily compare prices and terms from multiple vendors which can lead to significant cost savings for businesses.

Read more: The Cost of Processing an Invoice: Why Paperless AP Saves Companies Money

Improve Vendor Relationships

In addition, e-procurement software can help improve relationships with vendors. For example, if a business is using manual processes to manage its purchasing, there is a risk of human error that can lead to delays in payments. This can cause frustration for vendors and may lead them to seek out other businesses to work with.

Centralized Communication

E-procurement automation software can also help businesses communicate more effectively with vendors in a central location. For example, if a business needs to make a change to an order, it can easily and quickly communicate this change to the vendor through the software. This can help avoid misunderstandings and delays.

Increased Control and Visibility

An E-procurement automation solution also provides businesses with increased control and visibility over their purchasing processes. For example, businesses can set up alerts to notify them when a purchase order is created or an invoice is received. This can help businesses stay on top of their purchasing processes and avoid delays.

Real-Time Data Reporting

Finally, e-procurement software can provide businesses with real-time data reporting. This can help businesses track their spending, identify trends, and make informed decisions about their purchasing processes. With more time focused on tracking KPIs, you can set your business up to grow and scale.

Overall, e-procurement software can provide several benefits to businesses that are looking to automate their procurement processes. By automating the purchasing process, businesses can save a significant amount of time and money.

If you are considering automating your procurement process, our team at Mosaic can help you get started with an e-procurement automation solution tailored to your business needs. Contact Us today to get started.

For more automation tips and tricks, check out our blog for useful articles like The Accounts Payable Glossary: Everything You Need to Know About AP Automation.

The 5 Benefits of Automating Your Accounts Payable System: How to Improve Cash Flow

Cash flow is one of the most important aspects of any business. Without a steady influx of cash, your business will quickly run into trouble. One way to help improve your company’s cash flow is by automating your accounts payable system.

In this blog post, we will discuss five benefits you can expect when you automate your AP process.

What is AP Automation?

AP automation is the process of automating the accounts payable function within your business. This can be done through a variety of methods, but typically involves using software to streamline and automate the tasks involved in AP processing.

There are many benefits that come with automating your accounts payable system beyond just improving your business’s cash flow. For more information on AP automation solutions, check out our blog. We have tons of articles to help you understand the ins and outs of automated AP processing, like The Accounts Payable Glossary: Everything You Need to Know About AP Automation.

Now let’s get into AP automation’s impact on your business’s cash flow.

Payment Processing Made Simpler and More Direct

One of the main advantages of automating your accounts payable process is that it makes payments simpler and more direct. When you automate your AP process, invoices are matched to purchase orders and payment history using Intelligent Data Capture (IDC).

Intelligent Data Capture is much faster and more accurate than manual data inputting. This allows you to make payments electronically with great accuracy and little room for error.

With AP automation, your invoice cycles will be sped up significantly, cutting your processing cost per invoice by 86%.

By processing more invoices per month at a lower cost, your business will also have the opportunity to grow and scale with more vendors and suppliers.

This also gives you the opportunity to take advantage of cash-back rebates and early payment discounts that your vendors may offer. In addition, you can avoid costly late fees and interest by making sure that payments are processed in a timely manner.

Reduce Processing Costs with AP Automation Software

Another way that automating your accounts payable system can improve cash flow is by reducing your processing costs.

Manual data entry is not only time-consuming, but it's also prone to human errors. These errors can be costly in terms of the time it takes to fix them and the money you may have to pay in late fees, interest, or overpayments.

In addition, automating your AP process can help you avoid the costs associated with mailing paper checks. Automating your accounts payable process allows you to make electronic payments, which are less expensive than writing and mailing paper checks because fewer supplies and staff time is needed to make a payment.

Eliminate Data Entry Errors

As we mentioned before, one of the benefits of automating your accounts payable process is that it can help you eliminate data entry errors.

When you automate your AP process, invoices are automatically imported into the system. This means there is no need for manual data entry, which can lead to errors like overpayments, duplicate payments, and late payments.

In addition, automating your AP process can free up your payable department to verify accurate payments were sent on time. This can help you avoid any disputes with your vendors or suppliers.

Improve Your Relationship with Vendors and Suppliers

Another way that automating your AP process can improve cash flow is by improving your relationships with your vendors and suppliers.

When you automate your AP process, you can provide your vendors and suppliers with accurate information about when their invoices will be paid. This can help to build trust and improve communication between you and your vendors.

In addition, by automating your AP process, you can show your vendors that you are committed to timely payments and long-term business relationships. This can lead to early payment discounts or other incentives from your vendors.

Increase Visibility into Your Business’s Cash Flow

Finally, automating your AP process can help you increase visibility into your business’s cash flow.

When you automate your AP process, all invoices and payments are stored in one central location on the cloud with real-time visibility into accounts payable KPIs. This allows you to easily track your spending and compare it to your budget.

In addition, automating your AP process can help you identify opportunities to improve your cash flow. For example, if you see that a particular vendor always pays late, you may want to consider finding a new vendor.

Automating your accounts payable process can help you improve your cash flow in many ways. By making payments simpler and more direct, reducing processing costs, eliminating data entry errors, improving your relationships with vendors and suppliers, and increasing visibility into your business’s cash flow, you can take control of your finances and ensure that your business is running smoothly.

If your business is looking for a solution to your cash flow challenges, then AP automation software should be at the top of your list. Our team of expert digital consultants at Mosaic will work will you to find an all-in-one AP solution tailored to your cash flow management issues.

Contact Us to get started today!

Cloud vs. On-premises AP Automation: What’s the Difference?

When it comes to AP automation, there are two main options: cloud-based and on-premises. So, what’s the difference? Cost is one of the biggest factors – cloud-based solutions are typically more affordable than on-premises software. But that’s not the only difference. Security, scalability, reliability, and mobile/remote access are all important considerations when choosing an AP automation solution.

In this blog post, we’ll take a closer look at each of these factors and help you decide which option is best for your business.

On-Premises AP Automation

On-premises accounts payable automation software is installed and runs on your company’s own servers. This option used to be the only way to get enterprise-level features and security.

One of the biggest advantages of on-premises AP automation is that you have complete control over the software and your data. But this can also be a disadvantage. If something goes wrong with the servers or the software, it’s up to your IT team to fix the problem. And if you need to scale up your AP operation, you’ll need to invest in more hardware and licenses.

Cloud-Based AP Automation

Cloud-based accounts payable automation runs on the provider’s servers. This means you don’t need to invest in any hardware or licenses, just a cloud host. And you can usually get started for a lower start-up cost and monthly price than an on-premises solution.

One of the biggest advantages of cloud-based AP automation is that it's much easier to scale up or down, as your needs change.

You can also be up and running more quickly since there’s no need to install anything on your own servers.

Read more: The Accounts Payable Glossary: Everything You Need to Know About AP Automation

So, which option is right for you? Let’s get into it.

Cloud-Based vs On-Premises AP Automation: Cost

One of the biggest factors to consider when choosing between cloud-based and on-premises AP automation is cost. On-premises solutions require a larger upfront investment. You’ll need to pay for the software, as well as the hardware and licenses needed to run it. Plus, you’ll need an IT team to manage and maintain the system. On-premises systems also have higher maintenance expenses as they are more likely to malfunction.

Cloud-based solutions are typically more affordable since you pay a lower monthly price with a minimal start-up investment.

You don’t need to invest in any hardware or licenses, and there’s no need for an IT team to manage the system.

So, if the cost is a major consideration for your business, a cloud-based model may be the better option.

Read more: The Cost of Processing an Invoice: Why Paperless AP Saves Companies Money

Cloud-Based vs On-Premises AP Automation: Security

Security is another important factor to consider when choosing between cloud-based and on-premises accounts payable automation. On-premises solutions give you complete control over the software and your data. But this can also be a disadvantage. If something goes wrong with the on-premises servers or the software, it’s up to your IT team to fix the problem.

Cloud-based solutions are usually more reliable since the provider is responsible for managing and maintaining the servers and software.

And cloud-based solutions are typically updated more frequently, so you always have the latest security enhancements. 

So, if security is a major concern for your business, cloud-based AP automation may be the better option.

Cloud-Based vs On-Premises AP Automation: Scalability

Another factor to consider when choosing between cloud-based and on-premise systems is scalability. On-premises solutions require you to invest in more hardware and licenses as your needs change. This can be a disadvantage if you need to scale up or down quickly.

A  cloud solution is much easier to scale up or down, as your needs change. You can usually add or remove users with just a few clicks. And you can be up and running more quickly since there’s no need to install anything on your own servers.

If scalability is a major consideration for your business, cloud-based AP automation may be the better option.

Cloud-Based vs On-Premises AP Automation: Reliability

Another factor to consider when choosing between cloud-based and on-premise accounts payable automation is reliability. On-premises solutions require you to invest in more hardware and licenses as your needs change. This can be a disadvantage if you need to scale up or down quickly.

Cloud-based systems are much easier to scale up or down, as your needs change. You can usually add or remove users with just a few clicks.

And you can be up and running more quickly since there’s no need to install anything on your own servers.

If your business is looking for a reliable software solution, cloud-based AP automation may be the better option.

Cloud-Based vs On-Premises AP Automation: Mobile and Remote Access

On-premises automation solutions rarely offer mobile or remote access. This can be a disadvantage if your employees need to access the system from outside the office.

Cloud-based software, on the other hand, offers mobile and remote access as a standard feature. This empowers the remote workers in your accounts payable department to approve invoices from anywhere, at any time.

If you have a remote workforce, mobile and remote access and efficiency gains are major considerations for your business. Cloud-based AP automation will deliver on those business needs.

As you can see, there are a few key differences between cloud-based and on-premises AP automation. And each type of solution has its own advantages and disadvantages. So, it’s important to consider your specific needs before making a decision. But if cost, security, scalability, reliability, or mobile, and remote access are major concerns for your business, cloud-based accounts payable automation may be the better option.

If you’re ready to take the next step in your company’s digital transformation journey, Mosaic can get you started with an all-in-one cloud-based AP automation solution tailored to your business goals. Contact us to schedule a demo.

Cloud-Based AP Automation: The New Normal in Accounts Payable

The cloud is changing the way businesses operate. One area where this is particularly evident is in accounts payable (AP). Cloud-based AP automation is becoming increasingly popular because it offers several benefits that are not available with traditional, on-premises systems. In this blog post, we will discuss the different types of cloud-based AP systems and the benefits they offer. We will also explain why cloud-based AP automation is becoming the new normal for businesses.

What is Cloud-Based AP Automation?

Cloud-based AP automation is a system that allows businesses to manage their accounts payable process using cloud-based software. 

Many business owners prefer cloud-based solutions over an on-premise solution because they offer several advantages, such as lower costs, automatic importing and processing of data, increased security and additional backups, and the ability to allow access remotely to enable hybrid work.

There are three different types of cloud-based AP systems: public cloud, private/hosted cloud, and hybrid cloud.

Read more: Is Paperless Accounts Payable Software a Good Fit For Your Business?

The Benefits of Cloud-Based AP Automation

There are several benefits that businesses can enjoy by using cloud-based AP automation.

Cloud-Based AP Automation Offers Lower Costs

One of the most significant advantages is lower costs. With on-premises systems, businesses have to incur the costs of purchasing, installing, and maintaining the hardware and software. With cloud-based systems, these costs are eliminated because the service is provided by a third-party provider.

Your cloud-based accounts payable solution also empowers your team to capture early payment discounts by taking advantage of real-time insights that help you improve cycle times and cost per invoice. This AP solution will also deliver true cost savings because it checks for duplicate invoices to avoid double payments. Since your finance teams are also freed up from doing manual data entry, you can also save budget funds on payroll expenses.

Cloud-Based AP Solutions Have Heightened Security

Another advantage of cloud-based AP automation is increased security and additional backups. On-premises systems are susceptible to data loss due to hardware failures or natural disasters. With cloud-based systems, data is stored remotely and is therefore not at risk of being lost in the event of a disaster.

In addition, cloud-based systems offer increased security because they are often hosted in data centers that have state-of-the-art security measures like user authentication, privacy safeguards, and access controls. Confidential paper invoices are very difficult to keep secure, while digital invoices are always protected in your AP solution.

Cloud-Based AP Automation Can Be Accessed Remotely

Another benefit of cloud-based AP automation is that it offers anytime access remotely. This is important for businesses that have an accounts payable team that works remotely or travels frequently. With on-premises systems, these employees would not be able to access the system if they were not in the office. With cloud-based systems, they can take advantage of remote access from anywhere as long as they have an internet connection.

Better Visibility into KPIs with a Cloud-Based Accounts Payable Solution

Another benefit of cloud-based AP automation is that it makes it easy for finance teams to track key performance indicators (KPIs). With on-premises systems, businesses have to invest in additional software to track KPIs. With cloud-based systems, this functionality and high-depth data visibility is often included as part of the package.

Read More: Cloud vs On-premises Ap Automation

This makes it easy for businesses to track their progress in invoice processing times and cost per invoice metrics to identify areas where they need to make improvements.

Cloud-Based AP Automation is Scalable and Cost-Efficient

Finally, cloud-based AP automation is scalable and cost-efficient. With on-premises systems, businesses often have to purchase more hardware and software as their business grows. This can be expensive and time-consuming. With cloud-based systems, businesses can simply add more users to access invoice workflows as their business grows. This makes cloud-based AP automation a more cost-effective solution for businesses that are expecting to grow in the future.

Why Cloud-Based AP Automation is Becoming the New Normal

As you can see, there are several reasons why cloud-based AP automation is becoming the new normal for businesses. The benefits of lower costs increased security, metrics tracking, real-time access, maximum efficiency, and the ability to allow access remotely are just a few of the reasons why cloud-based AP automation is becoming increasingly popular.

Cloud-based AP solutions are also paperless, which means that businesses can save time and money by eliminating the need to print, scan, and store invoices. Paperless processes are also more eco-friendly which is increasingly important as we see the impacts of paper and plastic pollution. In addition, cloud-based AP solutions are often more user-friendly than on-premises systems, making them easier for businesses to adopt.

Read more: Why You Should Transition Accounts Payable To Paperless

As more fast-growing businesses adopt new software in their digital transformation efforts, cloud-based AP automation is likely to become even more popular. If your business is not already using cloud-based AP automation, now is the time to make the switch!

Mosaic offers Cloud-Based AP Automation Solutions and Consulting tailored to your business needs. Check out our blog for more AP tips like Successful AP Automation Implementation: Solving Common Challenges with Preparation and Collaboration.

Contact us to go paperless today!

The Accounts Payable Glossary: Everything You Need to Know About AP Automation

If you’re new to accounts payable – or even just looking to brush up on your terminology – then you’ve come to the right place. In this blog post, we’ll be exploring everything related to AP: from common terms and definitions to more advanced concepts like AP automation and ERP integration. We’ll also provide helpful links to additional reading material so that you can continue learning about this fascinating topic!

So without further ado, let’s jump right in and start learning about accounts payable.

What is Accounts Payable?

Accounts payable (AP) refers to the money that a company owes to its suppliers for goods or services. In other words, it is the amount of money that a company has committed to pay in the future. Accounts payable is typically recorded as a liability on a company’s balance sheet.

AP departments and employees oversee the invoice cycle and accounting process while creating detailed financial reports to ensure that a company is in good standing.

How is AP Tracked?

Most companies track their accounts payable using an accounting software system. This allows them to see how much money they owe at any given time, as well as when payments are due. Many accounting software systems also allow companies to automate their AP process, which we’ll discuss in more detail below.

Some companies still use manual processes to track accounts payable. This can be done with a simple spreadsheet, but it is more time-consuming and prone to error.

What are the Benefits of Automating Accounts Payable?

There are many benefits to automating accounts payable, including:

Read more: Is Paperless Accounts Payable Automation Software A Good Fit For Your Business?

What is ERP Integration?

ERP integration refers to the process of integrating your accounts payable process with your enterprise resource planning (ERP) system. This can be done in a number of ways, but the most common method is to use accounts payable automation solution that offers built-in ERP integration.

Integrating your AP process with your ERP system has a number of benefits, including:

What are the Different Types of Accounts Payable?

Now that we’ve covered some of the basics, let’s take a look at the different types of accounts payable. The most common types of accounts payable are:

There are also a few less common types of accounts payable, which include:

The Complete AP Glossary

Now that we’ve gone over some of the basics, let’s take a look at some of the most common terms you’ll hear in relation to accounts payable.

  • AP Automation
    Accounts payable automation is the use of software to automate the accounts payable process to boost overall operational efficiency and cut costs.
  • Accounts Payable Turnover
    Accounts payable turnover is a measure of how quickly a company pays its invoices. A high accounts payable turnover ratio indicates that a company is paying its invoices quickly.
  • Approvals
    Approvals are a necessary step in the accounts payable process. Invoices must be approved by the relevant parties before they can be paid.
  • Asset
    An asset is something that has value and can be used to generate revenue. In accounting, assets are classified as either current assets or non-current assets.
    • Current Asset: A current asset is an asset that can be converted into cash within one year. Examples of current assets include cash, accounts receivable, and inventory.
    • Non-Current Asset: A non-current asset is an asset that cannot be converted into cash within one year. Examples of non-current assets include buildings, machinery, and vehicles.
  • Balance Sheet
    A balance sheet is a financial statement that shows a company’s assets, liabilities, and equity at a given point in time.
  • Capital
    Capital is the funds that a business has available to invest in its growth. This can include cash, investments, and loans.
  • Cash Conversion Cycle
    The cash conversion cycle (CCC) is a measure of how long it takes a company to convert its inventory into cash. The CCC can be used to assess the efficiency of a company’s operations.
  • Cash Flow
    Cash Flow is the measure of how much cash is flowing in and out of a business. A positive cash flow indicates that more cash is coming in than going out.
  • Credits
    Credits are reductions in the amount owed on an invoice. Credits can be issued for a variety of reasons, such as returns or damaged goods.
  • Days Payable Outstanding
    Days payable outstanding (DPO) is a measure of how long it takes a company to pay its invoices. A low DPO indicates that a company is paying its invoices quickly.
  • Digital Transformation
    Digital transformation is the integration of digital technology into all areas of a business. This can include things like digitizing paper documents, automating manual processes, and implementing cloud-based solutions.
  • Discounts
    Discounts are reductions in the price of goods or services that are offered by suppliers. Early payment discounts are the most common type of discount and are typically offered for payments made within a certain number of days.
  • ERP Integration
    ERP integration is the process of integrating your accounts payable process with your enterprise resource planning (ERP) system. This can be done using a variety of different software solutions.
  • Equity
    Equity is the ownership stake that shareholders have in a company. Equity can be used to finance a business, and it represents the residual value of a business after liabilities are paid.
  • Income Statement
    An income statement is a financial statement that shows a company’s revenues, expenses, and profits over a period of time.
  • Invoice
    An invoice is a document that itemizes the goods or services that have been provided, as well as the amount owed for each.
  • Invoice Cycle
    The invoicing cycle is the time between when an invoice is received and when it is paid. The length of the invoice cycle can vary depending on the payment terms of the invoices.
  • Invoice Data Capture
    Invoice Data Capture is the process of extracting data from invoices. This can be done manually or using a software solution. Extracting data from invoices can be a time-consuming and error-prone process, particularly if it is done manually. AP automation solutions can automate the invoice data capture process with Intelligent Data Capture (IDC), making it more efficient and accurate.
  • Invoice Matching
    Invoice Matching is the process of matching invoices to purchase orders and receiving reports. This can be done manually or using a software solution.
  • Liability
    A liability is something that is owed by a business. Liabilities can be classified as either current liabilities or non-current liabilities.
    • Current Liability: A current liability is a liability that must be paid within one year. Examples of current liabilities include accounts payable and taxes payable.
    • Non-Current Liability: A non-current liability is a liability that does not need to be paid within one year. Examples of non-current liabilities include long-term debt and deferred tax liabilities.
  • Non-operating Expenses
    Non-operating expenses are the costs that are not associated with running a business on a day-to-day basis. This can include things like interest expenses and income taxes.
  • Operating Expenses
    Operating expenses are the costs associated with running a business on a day-to-day basis. This can include business expenses like rent, utilities, and salaries.
  • Paperless Office
    A paperless office is an office that uses electronic documents and digital processes instead of paper. Paperless offices are becoming more common as businesses look for ways to reduce costs and increase efficiency.
  • Payment Processing
    Payment processing is the final step in the accounts payable process. Once invoices have been approved, they can be paid using a variety of payment methods, such as checks, wire transfers, or electronic payments.
  • Payment Terms
    Payment terms are the conditions under which an invoice must be paid. Common payment terms include net 30, net 60, and net 90.
  • Purchase Order
    A purchase order is a document that is issued by a buyer to a seller, authorizing the purchase of goods or services.
  • Workflow
    Workflow is the sequence of steps that are followed in order to complete a task. In accounts payable, common workflow steps include invoice data capture, invoice matching, approvals, and payment processing.

The accounts payable process is a critical part of running a business. By understanding the basics of accounts payable, you can ensure that your business is able to run smoothly and efficiently. Accounts payable automation and integration can also help to improve the efficiency of your process. And finally, by understanding some of the most common terms used in relation to accounts payable, you can ensure that you are always up-to-date on the latest developments.

Do you have any questions about accounts payable? Contact Us to learn more about how AP automation can benefit your business.

Be sure to check out our other blog posts for more great information like Successful AP Automation Implementation: Solving Common Challenges with Preparation and Collaboration.

The Cost of Processing an Invoice: Why Paperless AP Saves Companies Money

When it comes to the costs of doing business, few things are as important as the cost of processing an invoice. For many companies, this cost can be surprisingly high – often more than the invoice itself!

In this blog post, we’ll take a look at the average cost to process an invoice and explain why so much money is wasted on paper invoices. We’ll also discuss the benefits of going paperless with your invoicing process and provide steps for calculating how much your company could save by making the switch.

How Much Does it Really Cost to Process an Invoice?

The true cost of processing a single invoice varies by company.

Based on a 2010 study, the average American or European company spends between $12 and $30 to process a single paper invoice.

A more recent study by Ardent Partners in 2015 shows that companies outside of the Best-In-Class pay about $17.61 per invoice. This is a hefty spend when you multiply that cost by the number of invoices your company processes annually. But why is this cost so high?

When you break down the individual steps required to process a paper invoice, it’s not hard to see how the costs can add up so quickly:

All of these steps take time – and money. In fact, the cost of labor alone can account for more than half of the total cost to process an invoice!

What Goes into the Cost of Invoice Processing?

When your company manually processes invoices, you must attribute the cost of all of the labor, materials, and time that goes into that single invoice. For example, manual invoice processing requires physical paper, postage stamps, paper checks, printers, late payment fees, ink cartridges, printer maintenance, envelopes, labor costs for manual process, managerial overhead IT support, facilities, and more.

Do you want to calculate your current average invoice processing cost? To do this, add up all of the labor costs, materials costs, and other expenses associated with processing a single invoice. Once you have your total, divide it by the number of invoices processed in a given period (monthly, quarterly, etc.). This will give you your per-invoice cost.

It is easy for business owners to overlook these costs because paper and printers have been business staples for years. However, as we have moved forward in the digital age, there is no longer a need for these costly supplies.

Paperless offices that prioritize digital transformation in the AP departments see astounding cost savings in their spending per invoice by cutting out these supply costs.

Read more: Why You Should Transition Accounts Payable To Paperless 

Paperless AP Can Save You Money

The good news is that there are now solutions available that can help you eliminate the waste and inefficiency of paper invoicing. A paperless accounts payable (AP) solution can save your company money in a number of ways:

On average, a paperless AP solution can lower the cost per invoice by as much as 80%!

According to Ardent Partners' research, paperless Best-in-Class accounts payable departments have a cost per invoice that is 86% less than all other organizations at $2.42 per invoice.

This means that for every $30 you spend on processing a paper invoice, you would only spend $0.60 with a paperless solution.

Switching to a paperless AP process is a smart move for any business that wants to save money and improve efficiency. If you’re still processing invoices the old-fashioned way, it’s time to make the switch!

Read more: Is Paperless Accounts Payable Automation Software A Good Fit For Your Business?

How Much Could Your Business Save with Accounts Payable Automation?

Now that we’ve looked at the average cost to process an invoice and the benefits of paperless AP, you might be wondering how much your business could save by making the switch.

Try out our Paperless ROI Calculator to see how much you could be saving by going paperless today.

Impressed? We know! This information can be shocking if this is the first time you’ve considered an accounts payable department without paper, but in the digital age, we don’t have to be reliant on costly paper anymore. AP automation can save your company time and money, so start looking into the right software solution for your business today.

To learn more about the cost of processing an invoice and how paperless AP can save your company money, Contact Us today. Our team at Mosaic would be happy to show you how our software solution can help you take your AP department paperless.

What’s the next step on the road to paperless? Check out our blog Successful AP Automation Implementation: Solving Common Challenges with Preparation and Collaboration!

5 Ways AP Automation Systems Make Working from Home Possible

More and more businesses are allowing employees to work from home, at least part of the time. This can be a great way to improve morale and keep talented employees happy. However, it can be difficult to do this effectively if you have a large accounts payable department. That’s where AP automation comes in. Automating your accounts payable process makes it possible for you to work from anywhere with an internet connection.

Remote Work Models Require Digital Transformation

To enable your employees to work remotely, you’ll need to implement digital transformation solutions in many of your everyday business processes so employees can easily access data, reports, and tasks from home. Thankfully, the AP processes are one of the easiest departments to transition to digital and remote workflows.

By implementing AP Automation Software, your business can transition employees to a remote or hybrid work model while setting your company up for long-term success.

By implementing AP Automation Software, your business can transition employees to a remote or hybrid work model while setting your company up for long-term success.

Read more: Is Paperless Accounts Payable Automation Software A Good Fit For Your Business?

Let’s take a look at five of the ways that AP automation can make working from home possible for your business!

Number 1 in circle

Receive, Process, and File Electronic Invoices Anywhere

Receiving invoices electronically is the first way that AP automation can make working from home possible. This means that there’s no need for your employees to be in the office to receive paper invoices. Instead, AP workers can be anywhere with an internet connection and still have access to all of the invoices that come in.

Another way that AP automation makes working from home possible is by allowing employees to process and file invoices from anywhere. This means that your AP team can work from home, or even from the beach if they want! All they need is an internet connection and they can access all of the invoices that need to be processed.

Invoices can even be processed and approved from a smartphone with the touch of a button. Employees are no longer trapped in the confines of the paper-cluttered desks to complete invoice approvals. Electronic invoices with AP Automation software allow your workers to focus on tracking key metrics for increased efficiency rather than wasting hours of labor-intensive tasks like manually inputting data

Read more: Successful AP Automation Implementation: Solving Common Challenges with Preparation and Collaboration

Number 2 in circle

Automate Payments

One of the best features of AP automation is the ability to automate payments. This means that your AP team can set up automatic, electronic payments for all of your invoices, so they don’t have to worry about manually wiring payments or writing physical checks. This can be a great way to save time and money, as well as to improve the accuracy of your payments.

Your suppliers and vendors will also be pleased with receiving more accurate and on-time payments. Slow, manual invoice processing often hurts your business relationships with vendors and suppliers because payments are inconsistent, but with AP automation, payments are reliable and always on time. This will bring the major advantage of vendor discounts for more opportunities to cut costs.

Number 3 in circle

Heighten Security Measures

When you automate your AP process, you can also take advantage of increased security measures. With AP automation, all data is stored electronically in a secure system with access controls. This means that there’s no risk of losing invoices or sensitive information if someone breaks into your office and steals paper files.

Additionally, AP automation systems often come with built-in fraud detection features. This can help you to avoid making payments on fraudulent invoices, which can save your business a lot of money. You can also backup documents in your cloud solution with control over access so your business never needs to worry about losing a valuable document with sensitive information.

Number 4 in circle

Reduce Costs and Invoice Processing Times

Finally, AP automation can reduce the overall costs and processing times for your business. This is because automating your accounts payable process can eliminate many of the manual tasks that are required, such as data entry or check writing. In addition, AP automation can also help to improve the accuracy of your invoices, which can lead to fewer errors and faster processing times.

Avoid those pesky late fees, under-payments, and over-payments that cost your company time, money, and labor. AP automation boosts operational efficiency so you can focus on growing and scaling your business for longevity.

Number 5 in circle

Instant Visibility into KPIs

When you automate your AP process, you’ll also have improved visibility into key performance indicators (KPIs) in high-level reports. This data can be extremely valuable for making decisions about your business. With AP automation, employees are relieved of their mundane invoice processing responsibilities so they can focus on the more important work of tracking metrics such as average payment time, the number of invoices processed per day, cost per invoice, and more.

This data can help you to identify areas of improvement for your AP process. For example, if you see that your average payment time is slow, you can take steps to speed up the process. Alternatively, if you notice that the cost per invoice is high, you can look for ways to reduce costs.

Overall, AP automation is a great way to make working from home possible for your business. By automating your accounts payable process, you can save time and money, as well as improve the accuracy of your payments.

Overall, AP automation is a great way to make working from home possible for your business. By automating your accounts payable process, you can save time and money, as well as improve the accuracy of your payments.

Still not convinced? Read our blog Why You Should Transition Accounts Payable To Paperless for more tips on how your business can benefit from an AP automation solution.

Contact Us to get started with remote AP Automation today.

Everything You Need to Know About Hiring a Digital Transformation Consultant

If you’re feeling overwhelmed by the digital age, or if you feel like your business is being left behind, it might be time to consider hiring a digital transformation consultant. These professionals can help guide your business through the often confusing and overwhelming process of transitioning into the digital era.

A digital transformation consultant will take the time to understand your business and its specific needs, and then provide specialized solutions that often work better for your business model than many off-the-shelf options will.

A digital transformation consultant will take the time to understand your business and its specific needs.

So how do you go about finding one of these consultants? And once you’ve found them, what should you look for when selecting one?

This article will answer those questions and more, so you can be sure you’re making the best decision for your business.

Why is Digital Transformation Important?

First thing’s first, let’s take a step back and look at the big picture. Why is digital transformation so important, and why should you care?

In short, the digital age is revolutionizing the way businesses operate.

If you want your business to stay competitive, you need to be able to embrace new technologies

 If you want your business to stay competitive, you need to be able to embrace new technologies and use them to your advantage.

Think about it this way: a few years ago, who would have thought you could order a taxi with your smartphone? Or that you could use an app to find a date? Technology is changing the way we live and work – and businesses need to change with it.

Of course, change can be scary. And when it comes to something as important as your business, you want to be sure you’re making the best decisions. That’s where a digital transformation consultant comes in.

Read more: It’s 2022, Stop Delaying Your Digital Transformation

What Does a Digital Transformation Consultant Do?

A digital transformation consultant is a professional who helps businesses transition into the digital age. They will take the time to understand your business and its specific needs, and then provide specialized solutions that often work better for your business model than many off-the-shelf options will.

In other words, a consultant can help you develop a digital transformation strategy to make the best software decisions for your business as you transition into the digital age.

What to Look for When Hiring a Digital Transformation Consultant

Now that you know why you should consider hiring a digital transformation consultant, let’s take a look at what you should look for when selecting one.

First and foremost, you’ll want to have an idea of what you’re looking for to improve your business. Is there a manual process that you would like to speed up or digitize? Which digital tools seem like they would improve overall operational efficiency?

For example, if you’re looking to streamline your accounting process, you’ll want to find a consultant who has experience with accounting software like AP automation.

if you're looking to streamline your accounting process, you'll want to find a consultant who has experience with accounting software like AP automation.

You don’t need to know exactly what you’re looking for, but by being prepared with some research and an audit of your current processes, you will have more success in finding the perfect digital consultant for your digital transformation goals.

As you browse your various options for digital consulting, look at their previous experience. What kind of businesses have they helped in the past? Do they have any case studies or testimonials that you can read? A credible track record and high success rate are key indicators of a strong consultant firm.

Additionally, look at what partnerships the consultant has with bigger players in the field. For example, if you’re looking for help with an ERP system, does the consultant have any experience working with SYSPRO or SAP? These are industry-leading platforms that can offer your business a lot of value – but only if you know how to use them.

Finally, make sure that the consultant offers robust training services for your employees to help them understand new systems. After all, even the best software in the world won’t do you any good if your team doesn’t know how to use it.

Read more: How To Get Your Employees Excited About Digital Transformation

Meet With A Consultant To Develop A Digital Strategy

Hiring a digital transformation consultant is a big decision. But it’s one that can pay off – big time.

If you're ready to take your business to the next level, we encourage you to meet with a digital consultant.

If you’re ready to take your business to the next level, we encourage you to meet with a digital consultant. Take the time to explain your business roadblocks to the consultant and allow them to offer their insight, technical expertise, and deep industry experience. The consultant should then develop a digital transformation strategy with specific digital transformation projects to kick off your transition. Their strategy should include a cost savings analysis, as well as, a calculated plan to track key performance indicators to ensure the software is functioning properly in your business model.

After the meeting, evaluate the consultant’s proposal and their character. If the specialist fits in with your company culture and their plan lines up with your goals, then it should be a strong hire and you can begin your digital transformation efforts under their guidance.

By following these best practices, you can be sure you’re hiring the best digital transformation expert for your business.

Read our blog for more digital transformation tips and guides like Why Printing Is The Enemy Of Automation Software.

Mosaic offers expert consulting services, tools, and training to guarantee our customers are equipped to match the pace of Industry with business systems to fit their needs.

Contact Us today to begin your digital transformation journey.