Companies often fall into a familiar pattern of performing tasks the same way as in the past. After all, do they need to fix what they think isn’t broken? But how can the C-suite figure out if the system needs repair if it hasn’t been analyzed in years? For example, paying invoices has been done manually for decades. It is a time-consuming and labor-intensive process. As modern technologies take over the workplace, organizations need to determine the real value of automating AP processes that accurately handle routine tasks with less time and labor.
Dare to Leave Yesterday Behind
Organizations that cling to what they deem to be tried-and-true practices wind up getting left behind. Technology evolves daily, and innovations are introduced regularly. Competitors are integrating updated technologies into their operations to get an edge. Organizations that fail to do this will struggle to catch up. Implementing technology and educating the team on how to use it takes time. Procrastination can become a costly mistake that could compromise a company’s reputation. Clients want to work with innovators who recognize the value of embracing automation. The first step to this competitive advantage is to learn more about viable options such as automating AP processes.
Time is Money
Processing invoices manually takes time and human effort. Repetitive tasks make this work tedious and unsatisfying. Trying to meet the impending end-of-the-month deadlines is challenging when invoices lay around waiting for approval. Combing through paperwork to verify the information required to pay an invoice could take hours. Following up to get approvals is frustrating. All of this time costs the company money. Progressive employees recognize when companies refuse to improve the workplace and integrate the technology everyone else is already using. As a result, an organization can also lose valuable human resources. When these costs are considered, it becomes easy to see the value of automated AP solutions. AP automation processes invoices faster and helps companies maximize human resources.
Fraud is Expensive
Manual processes create more opportunities for internal and external fraud to occur. The C-suite may wrongly believe long-term employees would never engage in acts of fraud. Unfortunately, fraud is usually executed by a trusted worker who knows an opportunity exists to get away with it. AP automation dramatically decreases the occurrence of fraud. Audit reports and real-time access to all financial updates makes it easier to detect inconsistencies. The sooner potential fraud is pinpointed, the less costly it is for the company to resolve it.
Mistakes Can Be Incredibly Costly
Consider how the AP team rushes to complete reporting at the end of the month. Hurrying through this manual process is sure to lead to errors. For example, an invoice laying in an inbox for approval might be overlooked. The result could be a penalty for late payment. If this becomes an ongoing problem, vendors may notice payments are continually delayed. These vendors could impose additional penalties or choose to terminate the accounts. The company is responsible to pay the penalties and suffer a blow to its reputation. AP automation ensures invoices are accessible to everyone in real-time, so they are approved quickly and paid before the due date. Plus, consistent, timely payments may inspire vendors to offer incentives for early payment.
Mobility Boosts Productivity
A productive workforce is profitable. People now work remotely when they are in-transit to meetings or at home nursing a stubborn cold. AP automation puts financial data at their fingertips in real-time. Whether someone is in the office using a computer or on the train with a mobile device, work can be completed instantly. From gathering facts about the invoice to getting approval for payment, performing routine tasks take just seconds instead of days.
Progressive companies realize the value of automating AP processes to streamline operations and reduce costs. AP automation solutions are becoming accessible and affordable to organizations of all sizes. Now is the time to embrace these essential technologies.