Accounts Payable Automation streamlines process resulting in reduced paper and improved operational efficiency while reducing the overall cost associated with the department.
There are two unique processes in Accounts Payable that require automation:
Automating the payment of invoices, bills etc. that are run through the accounts payable department is the easiest place to begin the Accounts Payable transformation. By automating payments first, you begin by reducing the paper that your department creates resulting in:
Payment automation services may be provided by your bank, by your ERP or by outside SaaS organizations that deal exclusively with Accounts Payable Automation. If you are a company that utilizes in diversified banking strategy, then enlisting the support of Payment Automation platform will allow you to maintain one process regardless of the number of banks or bank accounts you use for disbursements.
Automating the incoming supplier invoices, bills etc. that must be paid in the accounts payable department is also part of the Accounts Payable transformation process but is harder to implement. But, by eliminating the incoming paper invoices, you will transform your department into one of the most optimized departments in your organization.
Invoice Automation is done by SaaS companies that may handle your incoming invoices for you, allow you to forward them or may provide you with scanners to capture the invoices with your department. Transforming invoice automation takes a big budget. Upfront Capital expenditure is usually required. In addition, managing the implementation to transform this part of Accounts Payable Automation may take months or more to complete.
We strongly recommend beginning your Accounts Payable Automation process by automating your payments first. It's easy to manage and makes a tremendous impact and can turn your Accounts Payable cost center into a profit center instead.
“Automating our AP department has saved us on average $120,000 a year. When you add in the rebates from virtual card payments, it's insane. Our only regret is that we waited so long to automate.”