2016 has proved to be a revolutionary year for many accounts payable teams. At the forefront, AP automation is considered as the critical solution to increase efficiencies and make an impact at the highest level of business operations. This post will help you discover 5 ways to maximize the return on investment with AP automation:
1. More convenience thanks to data visibility
Accounts payable departments and decision makers always want accurate information and data to be available as fast as possible. Thank to AP automation, data entering into automated systems can be available instantly to anyone with appropriate access. Cash flow can be easily visible at virtually any point in the process and tracking of a single invoice is readily available.
2. Digital format enhances accuracy
Invoices in digital formats such as an electronic rendering or image formats via email attachments, as well as scanning paper to capture data via OCR (optical character recognition), minimize or even eliminate human interaction in many cases. As a result, human error could be dramatically reduced. Digitizing the invoice approval process can save a great deal of time and money.
3. Capitalize on early payment discounts
Statistics reveal that 29% of companies take advantage of early payment discounts. By combining invoices approval with automation, you’re able to negotiate deals with your vendors. Suggesting your vendors pay invoices early in exchange for a discount is an offer many suppliers will exploit.
4. Leverage payable data for improved cash management.
It’s exceptionally important to utilize automation tools to optimize supplier payments. This can help you enhance cash flow visibility as well as improve disbursement effectiveness. This improves vendor relationships while also ensuring prompt payment.
Group suppliers based on the relationship between the supplier and your business, the volume of payments, and the value of the purchase. This can improve vendor relationships together with ensuring prompt payment.
5. Transform AP into a profit center.
Statistics show 84% of organizations agree that automating invoice payments can cut down overall payment costs. AP automation is considered not only as a means to reduce paper, but it is also seen as an opportunity to enhance cash management and better workflow which can transform the vital AP function of an organization.
Above are 5 efficient ways to improve ROI greatly with AP automation. See more about AP automation here: Fully Automated Invoice Processing
Website: www.informdecisions.com
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