There’s no doubt about it: paperwork is painful. Manual data entry can be a tedious and time-consuming process, often leading to errors and unnecessary costs. Much like the irritating sting of a papercut, paper-based processes can take a serious slice out of your workweek. But what if there was a modern solution to mitigate these challenges? As businesses seek to streamline processes and improve efficiency, Accounts Payable automation has become an increasingly popular solution, providing relief from the constant papercuts of manual AP processes.
According to a recent study by Ardent Partners, businesses that adopt AP automation can see a reduction in processing costs by up to 81%, an improvement in processing times by up to 73%, and a decrease in error rate.
Let’s take a look at 5 ways AP automation can minimize manual data entry and clear your desk of paperwork.
1) Cost savings
Tackling that pile of paperwork in the corner of your desk is about more than simply tidying up the office. Automating your AP processes can significantly reduce your processing costs, too. According to a report by Levvel Research, businesses that automate their AP process can save up to $15 per invoice. By automating the AP process, your business can improve productivity and reduce costs — ultimately leading to improved profitability.
2) Time savings
The serrated edge of an invoice is the perfect weapon for cutting away at your day, it seems. According to the Institute of Finance and Management (IOFM), manually processing an invoice typically takes an average of 10 days, while manual data entry remains one of the top pain points for AP professionals. In contrast, businesses that embrace AP automation can process invoices in as little as three days. This remarkable improvement in processing time not only eliminates the risk of late payment, but also enables you to redirect your efforts towards higher-value tasks.
3) Improved Accuracy
When you’re drowning in paper, it’s all too easy to make a potentially expensive mistake. AP automation minimizes the need for manual data entry, and with it, the risk of human errors such as late or duplicate payments.
Additionally, AP automation can serve as a valuable tool in mitigating the risk of fraud. The use of electronic invoices and payments allows for easier tracking and monitoring, providing your company with enhanced security and peace of mind.
4) Enhanced vendor management
As an AP professional, building and nurturing positive relationships with your vendors is crucial for sustained business success. However, Manual AP processes can cut into your workday, your profits, and your vendor relationships.
By automating the accounts payable process, finance teams can free up more time to devote to vendor management and relationship building. Communication is enhanced through real-time access to invoice and payment information, while late payments and lost invoices are drastically reduced.
5) Increased visibility
A stack of paperwork on someone’s desk isn’t searchable, or particularly secure. With multiple stakeholders involved in multiple AP processes at numerous stages, important information can easily be lost or overlooked. AP automation can provide increased visibility, giving you full control of your payables so that you can make better-informed decisions. By automating the AP process, businesses can gain real-time access to invoice and payment data, as well as detailed analytics and reporting. This increased visibility can help you identify areas for improvement, optimize the AP process, and provide even more business value.
Conclusion
It’s clear: manual AP processes can cut into your workday, your profits, and your vendor relationships. But AP automation is about more than simply slapping a band-aid over your metaphorical papercuts. As businesses seek to streamline processes and improve efficiency, AP automation has become an increasingly popular solution. With the potential for significant cost savings, improved accuracy, and increased visibility, AP automation can help businesses of all sizes improve their AP process and ultimately improve profitability.
