Why Automate Your Accounts Payable Processes?

As organizations look to strengthen controls, drive out costs, and increase efficiencies, manual and time-consuming processes are an ideal place to start. The distributed nature of accounts payable processes often requires approval on several levels, and generates huge volumes of documentation that are difficult to effectively manage. Not only does this increase the amount of time needed to process each invoice, but it also sets the stage for costs to spiral out of control. After all, the average cost to manually pdf parser an invoice is $21 according to a recent study by the Aberdeen Group.

Productivity is another critical factor throughout the AP process. The Aberdeen Group found that the average time to process a single paper invoice is 20 days. For companies that process thousands of invoices per month, internal resources can quickly become strained. Because of this environment of escalating costs and decreased productivity, these organizations are turning to Accounts Payable automation solutions that virtualize the back office.

Benefits of Accounts Payable Automation

There are numerous benefits associated with the use of AP automation solutions in terms of helping AP departments increase efficiencies. A complete solution that incorporates workflow automation offers up to a 90% reduction of costs according to the Aberdeen Group, resulting in stronger internal controls, and the overall streamlining of the AP invoice review and approval process. In addition, the improved visibility and instant access to documents eliminates the chance of misplacing or losing paper, duplicating or overpaying invoices, or making late payments.

Another important benefit of a comprehensive invoice automation solution is that it allows authorized users to securely collaborate in real time. Since the documents are stored in a centralized online repository, internal personnel, vendors and other 3rd parties can be given instant access as well, reducing copying, shipping, and faxing costs. The improved electronic audit trails can also be extremely valuable, especially during audit reviews.