Why it pays to automate your Accounts Payable process
A way to increase productivity and performance, improve cash flow and gain a competitive advantage- can all of this really come from one simple, affordable solution?
If you currently have a part- automated process, it’s likely you’re already envisioning how far a fully automated system could take you. In a world where approval processes and document workflows are considered the top two client serving inefficiencies in business Huddle we can and should be doing more to streamline the process.
Paper-based and partially automated processes are often criticised by AP teams, but they could also be damaging your business:
✥ High processing costs: Manual data entry accounts for a large percentage of AP teams’ time and although essential, it adds no value to the business.
✥ Lack of visibility & control: Invoices are distributed for coding/approval/pricing. Queries are raised. Teams have to chase others to meet deadlines and answer questions.
✥ Late payments: Not only does this affect your reputation, there could be legal implications too.
✥ Duplicate payments/Missed early payment discount: Unnecessary and completely avoidable
If any of these feel familiar to you, it’s time to take action.
A comprehensive and automated AP solution will position your business for growth, it will improve control and compliance whilst strengthening supplier relationships and reducing overheads. A good solution will also provide the following benefits immediately;
✥ Maximise volume of invoices managed whilst minimising processing costs
✥ Deliver reliable payments and dependable information – viewed on-screen and on-demand
✥ Allow for users to speedily and efficiently manage exceptions
✥ Greater level of control- improve cash flow and forecasting
✥ Secure access to multiple users
✥ Reduce legal exposure and save on audit preparation
✥ Allow your business to grow without much further investment
Overhauling a core business process can be seen as an expensive, time consuming project but advanced solutions are now more affordable and accessible than ever. In addition, a return on investment (ROI) could be easier to accomplish than you think. Docuware highlighted the case of Penn Stainless Products Inc, a US company which achieved ROI within 1 year. Although significant cost savings were noted, improved productivity and efficiency were still acknowledged as the top benefits according to the company’s controller;
“Within one year, the system has more than paid for itself”.
Whatever the hype, it’s nothing if it isn’t solving what your business needs. AP automation is not a ‘one size fits all’ type of software. Look for a supplier who takes the time to understand your company and your team, and bases their recommendations on this information.
Ben Johnson Ltd serves clients across a variety of industries which provides us with a wealth of knowledge to tap into. Our team has designed advanced solutions for every industry meaning we’re equipped to be flexible in meeting your needs.
For more information on how AP automation could transform your business processes or to find out how Ben Johnson’s consultancy approach could help, please contact our Technology Team on 01904 698698.