CFO's: What's Holding You Back From AP Automation?

There are a lot of misconceptions when it comes to accounts payable automation, fallacies that hold companies back from embracing new technology that could make a real difference in the cost-effectiveness and efficiency of their accounts payable operations. The purpose of this article is to dispel those misunderstandings and provide realistic advice you can use to get started on the path to enhanced productivity through accounts payable automation.

What’s the holdup?
The current environment is rife with new advances in technology, much of which has been brought to market within the last few years. Interestingly, much of this technology is being used in and focused on the accounts payable function. No longer being relegated to a secondary position, the accounts payable process is now front and center when it comes to advances and enhancements offered to the business community. 

That’s great news for those looking to upgrade or enhance their current accounts payable processes. Unfortunately, there are some misconceptions that hold organizations back, keep them from taking that next all important step towards proficiency improvements.

The Reality vs. The Myth
What follows are some of the more common mistaken beliefs when it comes to accounts payable automation along with a discussion of the related issues.

Myth # 1: Fear

The Reality: It is natural to fear. The reality is that AP Automation is not an unknown, it's been proven now for many years. AP Automation is simply a much more efficient way of processing supplier invoices and should be embraced, there is no reason to fear it.

Myth #2: Accounts payable automation is complicated

The Reality: It’s not that complicated. Anyone currently running or working in an accounts payable operation already knows half of what they need to know, and that’s the hard part. Automation is simply a different way of handling invoices and it’s not convoluted. 

Myth #3: It will take a long time to implement

The Reality: That might have been true five or ten years ago but the new AP automation products currently available can be implemented in a very short period of time, sometimes in as little as four to six weeks. 

Myth #4: AP automation is beyond our pocketbook; it will cost a fortune

The Reality: This is another holdover that might have been true ten years ago but is no longer the case. There is an affordable solution for companies of all sizes, not just the giants. Looking at it from the payback standpoint, most automation projects will have paid for themselves in less than six months.

Myth #5: Our processes are unique so we’d have to spend a lot of money customizing any automation product on the market

The Reality: While every organization has a few idiosyncrasies that make them different from the masses, those differences are not as great as you might imagine. What’s more today’s automation products are not one-size-fits-all as in the past. Most are configurable with a number of different options. The end result is many firms are able to use the out-of-the-box solution with little or no customization. 

Myth #6: We’ll need to hire consultants who charge exorbitant fees to get the software up and running

The Reality: AP automation products on the market today are designed to be set up and used by the business owner, not a consultant. There is no need to hire a consultant to get the project off the ground and hence, no outrageous fees.

Myth #7: We'll need to let people go

The Reality: While AP automation will certainly make the AP process more efficient, it will not do away with the need for an AP staff. For starters, staff will be needed to deal with discrepant invoices. Unfortunately, discrepancies caused by inaccurate invoices submitted by vendors won’t go away. What’s more, there’s a whole raft of new responsibilities coming to accounts payable and management is unlikely to add staff to handle them. By making your process more efficient through AP automation, you are in a much better position to handle them. 

So now that we’ve dispelled any misconceptions that you might have about the realities of AP automation, let’s take a look at some of the other benefits that might accrue to a company who takes advantage of it. A few of those include: 

• Elimination or error-prone manual processes
• Greater data accuracy due to fewer errors
• Streamline invoice workflow and approvals
• Create touchless processing
• Automate invoice matching processes
• Fewer duplicate payments
• Fewer late payments
• Visibility to 100% of supplier invoices
• The ability to earn more early payment discounts
• The ability to easily identify rogue purchasers and use of non-preferred vendors
• Simplify monthly, quarterly and annual closes
• Improvement in regulatory compliance
• Improvement in fraud prevention
• Improved morale in the AP department 

As you can see from this short piece, AP automation is a very realistic approach for every organization. The benefits are too numerous to ignore. Are you ready to start exploring the option of AP automation for your organization? 

---

About Vision360 Enterprise and BlueCreek Software: BlueCreek Software is the developer of industry leading accounts payable automation system, Vision360 Enterprise. Vision360 Enterprise provides accounts payable automations services, systems and solutions to leading companies across the United States and Internationally. For more information about our Vision360 Enterprise accounts payable automation solutions please contact us www.Vision360Enterprise.com or call (603) 437-1400.