Accountants are on the front lines of an organization's AP process. They are the ones suffering through the manual workflow and they are the ones most aware of how AP automation could help.
Unfortunately, investment in a new AP software solution can be a harder sell for most decision makers, who don't see the everyday frustration of their AP team, and who find themselves focused on reducing operational costs and maximizing efficiency.
In this blog post, we'll explore how accountants can get on the same page as their decision makers and demonstrate why AP automation is a critical and strategic investment in the success of any organization.
What Is AP Automation?
AP automation uses technology like OCR (optical character recognition) and GL smart coding to streamline and manage the accounts payable (AP) process. Everything from purchase orders to invoices, to payments are positively impacted, reducing manual work, improving efficiency, and mitigating the risk of errors and fraud.
AP Problems Are Hiding in Plain Sight
It's not uncommon for manual AP processes to seem "fine" from an outsider's perspective, but don't be fooled! Most AP teams face a lot of challenges that go unnoticed by those outside of the day-to-day work. Let's explore some of the most common issues.
Sluggish workflows
Approval bottlenecks are one of the primary problems faced by AP teams who rely on manual workflows. According to a Quadient AP survey of AP employees, as much as 20% of their time is spent chasing approvals. Not only is this inefficient but it can also result in late fees which negatively impact the bottom line. And if your team is remote, the problems are even worse.
Data entry errors
Data entry errors are another major concern of manual AP ― whether due to typos, miscalculations, or missed details. These errors lead to discrepancies in financial records, delayed, missed, or duplicate payments, and strained relationships with vendors. And once a mistake occurs, it must be corrected manually ― easily doubling or tripling the time investment of an initial task.
Wasted time and money
Time is one of the most valuable assets an organization has. But according to a McKinsey Report, 40% of surveyed workers spend 25% of their workweek performing repetitive, manual tasks. This leads to an average invoice processing cost that is often more than the value of the invoice itself!
Software silos
Segregated software systems like Excel, Quickbooks, and Xero don't communicate well with each other. This leads to data silos and fractured views of an AP department's operational health. The longer each tool works in silo, the harder it becomes to make well-informed financial decisions.
Moving Towards AP Automation
All the problems described above stand between you and a healthy AP workflow. Fortunately, you can break down a lot of these walls with Quadient AP's cloud-based automation solution. Here's how:
- Streamline your approvals: Thanks to previews of all pending invoices and automated invoice approval reminders, Quadient AP's cloud-based solution provides access to data anywhere, at any time. See how Quadient AP helped eliminate ICBA's (Independent Contractors and Business Association) convoluted approvals process.
- Avoid manual data entry: Quadient AP's software solution digitizes, collates, and processes invoices automatically, providing an 83% reduction in manual data entry and processing invoices 9X faster and with 99% accuracy. See how Quadient AP eliminated hours of manual data entry and the stacks of paperwork and filing cabinets that were plaguing Minikahda Club's AP process.
- Save money and improve efficiency: Organizations that process 100 or more invoices a month and use AP automation save 60-80% over manual invoice processing with an average cost per invoice of $5 or less. See how Quadient AP improved invoice visibility and status transparency for this not-for-profit organization, ultimately reducing the time spent on manual processes and minimizing the risk of errors.
- Eliminate data silos and gain transparency: Quadient AP integrates seamlessly with your organization's ERP software and other data processing tools to eliminate data silos and help the entire process run more smoothly. See how Quadient AP revolutionized AP for global marketing SaaS leader, Eagle Eye Solutions, integrating seamlessly with QuickBooks and reducing the time spent on each invoice by 50%.
Where To Start
Now that you've explored what Quadient AP's automation solution has to offer, it's time to start building a business case to convince your decision makers to get on board.
Begin by clearly explaining how AP automation will provide:
- Cost and time savings
- Task and function efficiency
- Streamlined financial processes
- Workflow flexibility
- Enhanced visibility and control
- Revenue growth
- Improved vendor relationship management
If you want to put concrete numbers behind your case study, you can use Quadient AP's ROI calculator to clearly demonstrate the impact of AP automation improvements to your specific organization.
Quadient AP is the Clear Choice
AP automation eliminates manual processes, reduces the risk of error and fraud, saves time and money, and frees finance professionals to focus on high-value, strategic activities.
We know that today's market offers many different AP automation options, all with different combinations of features, benefits, and pricing plans, and that making the right choice for your organization can feel overwhelming. But it doesn't have to be! We've put together a buyer's guide for you to help you work out what to look for and how to make a well-informed decision.
Book a demo today to see why Quadient AP is the right choice for you.
