How can your business benefit from AP automation? For starters, it can save you a bundle in time and money. If your AP department looks like a cyclone hit it, you aren’t alone. It can be difficult to keep track of the endless files and paperwork. Depending on your business and the time involved in managing each account, it can cost anywhere from $2 to $10 per invoice to get everything organized.
Fortunately, there’s a solution to the chaotic mountain of paperwork. AP automation is a powerful way of reducing the time and effort spent on accounts payables administration.
Take a look at some ways that AP automation can benefit your business.
Core Functions Need Streamlining
AP automation software can streamline core AP functions.
Here are a couple examples:
A manager stops by the AP person’s desk to check on an invoice and the AP manager must stop what they are doing. They will then have to look up the invoice, which can take several minutes depending on how far along it is in the process.
A stack of invoice piles on the approving manager’s desk waiting for a signature while the manager is away at a trade show. During this time, some vendors are concerned, asking if the check is in the mail because the document is still waiting for the manager’s approval.
At the end of each workday, the accounting staff must stop fifteen minutes before quitting time to manually file mountains of paperwork that have accumulated during the day’s business activities. What’s worse, there is an entire wall of file cabinets with a full fiscal year’s worth of paid invoices taking up valuable space.
Each of these scenarios reflects wasted time, money, and effort that could be put to better use for your company.
Streamlined Functions Saves Time and More
Each of the previous scenarios would look quite different with AP automation.
In the first scenario, the manager can log into their automation software system and find the invoice without assistance. The invoice’s status can be viewed on the screen and notes can be added if necessary.
In the second scenario, the approving manager receives notification that invoices need approval. Logging on to the system via the internet, reviewing invoices, and approving them daily avoids a backlog of approvals and ensures a steady and uninterrupted flow of accounts payable documents.
In the last scenario, the need for extra file cabinets is eliminated since all files will be kept in the cloud, available to anyone who needs them. Paperwork will be automatically routed. Worker productivity is increased by 15 minutes due to the elimination of tedious data entry. In a five-day workweek, that adds up to one hour and 15 minutes of added productivity per employee.
The right AP automation software is easily integrated with your current business systems. It provides you with a quick transition to a paperless environment with an array of common productivity and ERP applications
AP automation is not out of reach. You just need the right software. If your office relies too heavily on paper or your accountant spends too much time filing and manually adding data to your accounting system, you might want to consider adding a new solution to your business applications.
Contact us today and find out more about how automated systems can save you time and money.