9 key steps to successful Accounts Payable (AP) automation (Part 1)

In tough economic times, AP automation is considered as a lifesaver for AP departments. When implemented properly, AP automation can transform them from cost centers into profit centers. But how do you insure that the accounting department operates as accurately and efficiently as possible, and what is the nearest road leading to successful Accounts Payable automation? Below are the first key steps:

1.  Identify and build your business case

This is the first and most important step. You have to identify your business situation and build a strong business case so that your company can both achieve a good return on investment and solve many of business issues together with manual processes.

Before choosing any solution or implementing any strategy, it’s crucial that you calculate ROI. This is seen as the significant preparation in building your business case. Then compare the ROI between different solutions. This is a simple equation helping you calculate and compare ROI:

(Current cost-per-invoice – Projected cost-per-invoice) X Invoice Volume = Savings

2.  Know your needs and goals

After identifying and building your business case, you need to carry out a thorough examination of your current processes. Then determine your company’s specific needs and objectives, both from management and end-user perspectives. The most important point is communicating with end-users (accounting staffs in this case) to understand the pain points of the AP process because they are the ones who directly handle and solve AP issues.

Do not rush and try to deal with all problems they encounter, focus on the main points and prioritize requirements and goals to maximize your ROI.

3.  Get senior management support as soon as possible.

Your company may have thousands of projects vying for the same budget dollars and IT resources. Gaining budget approval from your senior manager would increase your chances of success.  Build a steering committee of senior members from all departments within your organization, from the accounts payable department through your supply chain.

4.  Develop an AP automation strategy

When all steps above are successfully conducted, it’s time to develop a thorough AP automation strategy for your specific business. You have to make sure that your strategy can meet all of your business’s needs and goals, and address the areas you wish to automate, from invoice capture and process, workflow and approval to payments.

Above are the first 4 of 9 steps to successful AP automation. Subscribe my blog to avoid missing the latest news about part 2 of this post as well as receive useful info about AP automation.