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.

Read more: How AP Automation Can Help Solve Your Company’s Scaling Challenges

Are you ready to take your accounts payable department and entire business to the next level? Contact us today.

What are the main goals for your business? Do you want to increase productivity, raise revenue, and also grow your business? Oftentimes it can be difficult to discern a business trend from legitimate strategies with proven results. Transitioning to a paperless accounts payable process is a guaranteed way to boost productivity and scale your business.

The entire point of the Accounts Payable department is to pay bills and invoices for a business. This task, while seemingly quite simple, requires an extraordinary amount of effort, manpower, and money. Broken down into its most basic parts, there are two ways to achieve this task: with paper and without.

The Downside of Using Paper

There are many negatives to using a paper-based accounts payable process. First of all, it costs more to process invoices with paper. Paper processes are slow and they come with hefty supply, labor, storage, and processing costs. A paperless accounts payable solution will allow you to process invoices faster, capture early payment discounts, and eliminate supply costs. Check out our Paperless ROI Calculator to see how much you could be saving.

You are also more likely to have human errors with a paper system. Human error is always a potential issue with manual data entry and your company may fall victim to late fees or accidental duplicate payments. Digitized invoices with Intelligent Data Capture (IDC) and electronic invoice approval workflows eliminate common data entry errors and speed up payable processing.

In addition, going paperless is a much better eco-friendly solution. Paper accounts for 26% of all waste in landfills. The deforestation caused by our mindless and wasteful use of paper can have a devastating effect. Trees are needed to produce oxygen and to protect the world from additional Global Warming.

The Benefits of Automating the Accounts Payable Process

In addition to it being more eco-friendly and more cost-effective, there are a lot of benefits you will find with the transition to Accounts Payable automation software like:

• Faster payments – Implementing AP automation removes the slow physical step of manual invoice processing where one staff member must pass along the invoice to a manager for approval or mail paper checks to vendors. Invoice processing speed will reach an all-time high when you make the transition to paperless accounts payable software. Automated workflows make the entire process seamless to help your business capture early payment discounts and eliminate late fees. 
• Significant cost savings over time – Not only do paperless invoices cost less to process, but with a paperless accounts payable system, fewer employees are necessary. Some companies discover new roles and job titles for former AP workers in departments such as finance and accounting, analysis, internal processes, and business strategy. Improving your business processes by streamlining the approval process is a great way to reduce labor costs.
• More storage space – Get rid of paper processes and paper records. A digital document management system like Epicor ECM will keep all incoming invoices, electronic records, and other digital files in one secure location. Transitioning to a paperless system will give you more storage space as you won’t have to fill your office with clunky filing cabinets.
• Better vendor and supplier relationships – With paperless invoicing, your business will see happier vendors and suppliers who are pleased with how fast their payments arrive compared to the slow paper-based system that can take weeks to process payments.
• More visibility into cash flow — AP automation software offers accurate reporting tools and metrics with real-time information so your AP team can have more visibility into the number of invoices you process a month, cost per invoice, how much you are saving, and how to boost AP productivity. This allows your accounting team to focus on cash flow management and business growth rather than tedious task of organizing and managing paperwork.

Additional AP Automation Features

The AP automation services at Mosaic have quite a few beneficial features:

• Image capture – This saves your business in mailroom deliveries, envelopes to open, and postal charges that come with receiving invoices from remote offices.
• Intelligent Data Capture (IDC) – You will no longer have to mess with manual data entry as there will be immediate tagging of all invoices.
• Approval and coding – This allows you to pay invoices in ¼ the time, capture discounts, and avoid late payment charges.
• Posting and paying – This saves you from slow and error-prone manual data entry into your ERP and it simplifies the vendor payment process.
• Storing and retrieving – No file cabinets or filing supplies, massive space recovery, and no Iron Mountain relationships.

If you want to learn more have a look at What is AP Automation?

How to Make the Transition to Paperless Accounts Payable Software

Once you’ve made the decision to recycle those paper invoices and try paperless accounts payable process software, there are a few key steps to follow to make the transition go smoother:

• Identify your goals: The first thing you need to do is pinpoint your specific reasons for transitioning into a paperless accounts payable process. Whether it’s to cut costs, reduce errors, increase efficiency, or free up staff, identifying your goals will ensure that everyone is on the same page and provide clarity for the entire team moving forward. It will also be easier to track your progress and measure your success.
• Communicate with your team: Once your goals have been identified by each department, make sure everyone is in the agreement including leadership and management. By setting expectations and getting everyone on board, you can minimize future conflicts, as well as include any potential concerns from other employees through collaboration and integration. It is always great to look at each step to implement a new system.
• Find a system that works for your office: When searching for the best AP automation services for your business, you want to make sure you’ll be able to integrate with your accounting software seamlessly and have the capability of handling a large number of payments, invoices, and transactions.

Moving Forward with Accounts Payable Process Automation

Getting everyone on board to transition to an accounts payable automation process will have your company one step closer to digital transformation. By following this simple guide, you can ensure that the process takes place as easily and seamlessly as possible so that you can spend less time on manual processes, and more on doing what you do best: running your business.

Contact Us to begin your digital transformation with a paperless accounts payable system.