Accounts Payable Automation: Myth or Fact?

In a recent study by the Institute of Financial Operations (IFO) on Accounts Payable Automation, over 95% of the respondents said they still receive paper invoices in the mail. It is 2015, it is time for your company to improve the way you company processes incoming invoices.

By now you have probably heard that Accounts Payable (AP) processing isn’t as efficient as it should be. You probably have heard the risks of misplacing invoices, not paying them on time, the time it takes employees to file and retrieve these invoices or documents, and much more. You are more than aware that AP automation will give you the efficiency, cost controls, visibility, and accuracy of information that your industry demands to be successful.

Our ERP System Can Do That - While your ERP or accounting system might have an accounts receivable module, they notoriously lack the functionality, control, insight, and automation required to support the accounts receivable management process. ERP simply were not built for accounts receivable mangement; some of the major issues with managing A/R in your ERP module include their inability to handle disputes and dispute resolution, the need for additional dependent modules, the lack of sophisticated reporting, the need for outside applications and spreadsheets to fill functional gaps, their inability to automatically update account information, and extreme process and workflow inefficiencies.

We Don’t Need Automation – Do you want to save time and money and realize fast ROIs? AP automation allows organizations to get on top of their invoice management agenda, providing solutions with unrivaled ease-of-use, flexibility and powerful matching capabilities.  Automated AP solutions provide increased productivity, reduced processing costs, improved process transparency and minimized errors and fraud.  Other benefits include multi-channel interaction, rapid ROIs, touchless processing and easy scaling. Solutions cover the full invoice management process from capture through validation, process management, archiving and reporting. Rather than spending time on redundant tasks like data entry, filing, sorting, copying, etc. employees can concentrate their efforts on work more directly related to your bottom line.

Automation Doesn’t Really Save Money – The cost to manually process an invoice can range from anywhere between $5 – $25, and with strategic automation, this cost can be reduced to an average of $2.50! High costs include those associated with the errors of manual data entry, invoices getting lost while they are routed from one individual/department to another, exceptions processing, accrural delays, failed audits and duplicate invoices. Automation provides a 90 – 95% reduction in paperwork which leads to a 25% increase in labor productivity.

We’ll Lose Control - Automation actually provides greater visibility, allowing authorized users to see invoice status at any time.  Invoices are no longer left unattended, and employees are held accountable for their role in the approval process. This in turn leads to greater control since processes are automatically updated as invoices make their way through workflows, providing more time for focus on exception handling.

We Can’t Afford Automation – Actually, you can’t afford not to have AP automation. With the right solution in place, you’ll save time and money currently spent on manual processes while avoiding things like double payments and forgotten invoices. And, with cloud-based solutions, there is no upfront software purchase required and no dedicated IT team to be put into place. Using this type of solution enables organizations to realize faster ROIs by basing return on documents processed rather than viewing it as a project.

We’re Too Small For Automation – No matter what the size of an organization, there are employees assigned the task of manually entering invoice data when they could be focusing on more strategic responsibilities.  Just like with larger businesses, there is money to be saved through the implementation of an accounts payable workflow, including lost invoices and failed audits.  And with the use of cloud-based solutions, costs are minimized with solutions available to fit any budget.

We’re Too Big For Automation – AP automation solutions were actually first designed with larger organizations in mind, so they are able to handle large volumes of invoices. With the abiity to create effective workflows and integrate with existing ERP systems, automation is a no brainer for the larger business that has many more departments and employees for a single invoice to pass through.  There is a greater chance for error with a manual system used in a big business since there is a higher number of invoices and more people handling them. Automation takes manual procedures out of the mix allowing for increased control and visibility.

We Don’t Have Time to Implement Automation – There are many AP automation solutions to choose from, many of which require no dedicated IT teams or special training. You can decide whether to outsource, insource or use a combination of both. Any time spent on implementation will be quickly regained through rapid ROIs.

About Vision360 Enterprise: With Vision360 Enterprise there is nothing to purchase, no software licensing restrictions, no annual software maintenance and very little IT resources needed. Vision360 Enterprise automates the routine steps involved in approving invoices. Once supplier invoices are captured, the invoices can be routed to approvers based on business rules, through multiple levels of approvals, coded and released for payment.

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