Whether you operate in telecoms, manufacturing, professional services, or another industry, manual accounts payable processes could hinder your organization from achieving maximum efficiency. Downloading invoices, entering paperwork, cutting checks, and reconciling statements are time-consuming for finance teams in any sector.
Imagine automating these routine tasks to reclaim valuable hours. Quadient’s AP automation solutions enables approving invoices with a click, automating supplier payments, and gaining real-time visibility into spending across your business.
In this guide, you’ll discover how digitizing payables processes can boost productivity for organizations in fields like IT, distribution, utilities, and beyond. Learn how tapping into accounts payable automation tools optimizes financial control no matter your industry and frees up resources for higher strategic priorities.
Understanding Accounts Payable Automation
Accounts payable automation streamlines invoice processing and payment delivery. Manual tasks like data entry, approval routing, and check writing are replaced with digital workflows.
Key benefits include time savings, centralised spending visibility, and financial control. Automated invoice capture through scanning or Email imports avoids rekeying supplier documents. Electronic payments eliminate physical checks.
Cloud-based platforms provide mobile access for approvals on the go. Administrative work is simplified, freeing your accounts team for more strategic activities. Vendor inquiries are quickly answered with detailed online payment records.
How Accounts Payable Automation Boosts Efficiency?
Here are some steps you need to know:
Time Savings:
Automation replaces tedious manual tasks like data entry, filing, and mailing invoices with digital workflows. Electronic transfer eliminates check writing. Near real-time approvals on mobile devices further trim time per invoice. With automation, accounts teams can process much higher invoices in less time.
Error Reduction:
Automation integrates capture technology that extracts critical data from invoices. Missing information is automatically validated. Digital approvals and online record-keeping minimise errors from handwriting and misfiling. Automatic transfers eliminate mistakes from manual checks and bookkeeping. Overall, automation ensures a high degree of accuracy.
Improved Cash Flow Management:
Automation provides a 360-degree view of department payables and spending trends. Payment timing is optimised based on terms and cash positions. Online systems track budget utilisation. Advance reporting enables proactive management of liabilities and outflows. Visibility into supplier performance supports strategic sourcing and negotiations.
Faster Approvals:
Automated workflows route invoices to the correct approvers electronically. Notifications of due invoices prevent delays. Mobile approvals allow real-time sign-off from any location. Automatic alerts flag exceptions requiring review. Overall, automation substantially reduces approval cycle times compared to physical paperwork shuffling between desks.
Key Benefits of Accounts Payable Automation
Here are some benefits you need to know:
Cost Savings:
Automation reduces labor-intensive tasks and lowers supply costs. Electronic payments avoid check fees. Built-in controls prevent duplicate and overpayments. Streamlined workflows increase payables department throughput. Studies show an average 30% reduction in expenses and staff. The investment pays itself through regained labor costs in 1-3 years.
Increased Productivity:
Automation digitizes manual paper shuffling and repetitive approvals, freeing finance personnel from cumbersome tasks. Instead of data entry, staff focus on analysis, procure-to-pay process improvements, and vendor management. Productivity gains empower value-adding strategic finance initiatives, providing a bigger return.
Enhanced Compliance:
Automation ensures compliance across the procure-to-pay process through standardised capture, workflows, and auditing. It centralises financial controls, records approvals, and justifies payments. Embedded authorization limits prevent overspending. Retention of electronic records simplifies auditing requirements and responding to queries.
Scalability:
Automated systems scale to accommodate invoice volume growth without adding headcount. Built-in flexibility meets changing business needs. Extensible platforms integrate new solutions seamlessly. The cloud facilitates accessibility for a mobile or dispersed workforce. As the company grows through acquisitions, automation enables a unified payables experience.
Implementing Accounts Payable Automation
Here are some steps you need to know:
Step-by-Step Guide:
- Assess current processes to identify pain points.
- Select a vendor and demo their software.
- Configure workflows to mirror current procedures.
- Input crucial master data.
- Establish training and go-live plans.
- Pilot the system on a small scale before full rollout.
- Monitor post-implementation and gather feedback to ensure optimal use.
Choosing the Right Software:
Determine automation needs – AP only or procure-to-pay. Compare features, ease of use, integrations, scalability, and pricing models. Seek client references in similar industries. Evaluate the vendor’s commitment to support and product roadmap. Prioritise usability for approvers who need to be more immersed in accounting. Opt for flexible cloud-based solutions.
Overcoming Challenges:
Change management requires executive buy-in and training staff on new procedures. Data conversion from the old to the new system needs testing. Unplanned downtime can stall approvals – plan redundancies. Performance issues may arise on premium days. Have backups. Address initial bugs promptly. Cultural resistance to technology requires patience. Appoint super users to assist colleagues through the transition.
Conclusion
Streamlining your accounts payable with automation delivers clear benefits for any organization. It can liberate your financial team from tedious manual tasks while strengthening spending oversight.
With critical processes digitized, your business gains agility to focus on core goals. Whether you choose integrated software or cloud-based payables apps, the right technological tools transform once cumbersome procedures into efficient workflows.
Take the next step towards optimising payables by exploring available options to find the best fit for your needs. Boost efficiency today with accounts payable automation.
