Relationships between businesses and vendors largely depend on the efficiency of the accounts payable processes. A company that pays its suppliers in time reaps several benefits.
For ages, accounts payable teams have relied on manual procedures plagued with challenges. Problems like duplicate invoices can cost you money, time and vendor relationships. Automation eliminates some of these issues. With software like Yooz, you can streamline your AP workflow from processing to payment. The following benefits of AP automation should convince you why the investment is necessary.
The most apparent ROI you get from automating accounts payable is time savings. Processing invoices and sending payments by hand takes time. The AP team is responsible for different tasks that need reconciliation to satisfy vendor terms. Depending on how large an organization is, invoices can sit for weeks before the team gets to them. Automation improves workflow considerably, thereby decreasing the amount of time processing takes. An automated accounts payable system removes the delays associated with manual tasks. Employees can use the dashboard to track invoices in real-time and share them among team members. Additionally, AP software cuts the steps it takes from intake to payment. The time your company saves through automation can go towards critical operations.
Improve Relationships with Suppliers
Delayed payments are some of the easiest ways to ruin vendor relationships. Automating AP shortens payment cycles, meaning vendors receive their payments faster than when using manual processes. With AP software, you don’t need to back and forth with suppliers through emails to initiate and monitor invoices. The more efficient your accounts payable procedures are, the better you relate with vendors. AP tools come with numerous features, some of which allow for customisation, enabling you to create workflows that suit specific requirements.
Regardless of how meticulous employees are, mistakes happen. Someone in the accounts department can enter the wrong figure in an invoice or overlook a payment. Duplicate payments are a common mistake in manual invoice processing. Human error in accounts payable costs companies a lot of money. The mistakes can be from your side or your partners’. Your business can eliminate this risk through automation. AP software captures the necessary details accurately and simplifies data validation.
Every invoice your company processes costs money. This expense is significant if you handle invoices manually because you pay for supplies, labor and storage. Even a simple manual process can cost you $6-$8 per invoice, with some enterprises paying as much as $40. Using software for invoice processing requires a fraction of the costs of a manual system. Automation can slash the cost per invoice by up to 80%. Besides cutting the amount you spend on labor and supplies, AP software also makes it easy to store records.
Accounts payable automation enhances transparency. Besides capturing data accurately, AP tools allow users to share and track information, which goes a long way in fighting fraud. Companies fall victims to different kinds of accounts payable fraud, costing them millions. Duplicate invoices, irregular invoice volume, and rounded-amount invoices are examples of leakages that lead to AP fraud. Automation lets you track invoice activity for the usual culprits.
Accounts payable automation is a valuable investment that every business should consider. Your company can improve in the areas mentioned above.