Last year, a report revealed that only 95% of SMEs are still using some kind of paper-based, manual process in Accounts Payable.
While it’s well known that automation solutions can help businesses save time and improve their bottom line, adoption of automation solutions remains fairly slow.
Indeed, new figures show 35% surveyed businesses have no plans to switch to automation – and companies with AP automation remain unsatisfied with manual touch points when paying suppliers and reconciling payments. However, those who are satisfied with their current AP automation solution report huge benefits.
There is much to gain from upgrading to next-generation automation software.
Here’s 4 reasons you should consider AP Automation:
AP automation can give you complete visibility of all invoices in the system. This ensures that they won’t “disappear” or “be forgotten”, eliminating late fees. With a full overview, you can pinpoint the exact status and location of every invoice. With accounts payable automation, you can search for and directly connect with suppliers to receive e-invoices. By connecting your AP system to a buyer module, orders can be automatically matched with supplier invoices in a completely zero-touch process.
Putting an end to manual accounts payable administration will immediately reduce costs. According to a recent report from Concur, manual handling costs an average of $12.90 per supplier invoice. AP Automation reduces this cost by an average of 29% depending on business sector and company structure. The less paper in the process, the less it will cost.
Reduce Processing Time:
By choosing a solution that caters to the growing demand for remote working, you can review and authorize invoices by email or via a mobile device, anywhere you happen to be. Web based solutions that can be accessed any time, from any location help to save time and travel costs.
Reduce Your Carbon Footprint:
E-invoicing can not only save money and maintain better standards of data quality, it can also contribute to a better environment. If all invoices in the country were paperless, Co2 emissions would be reduced by several thousand tonnes per year.
In conclusion, AP automation reduces costs at the same rate that it increases control. In doing so, it saves time that can be dedicated to other tasks, such as spend analysis, business development and process improvement.
A next generation automation system will handle matching, authorization flow and account processing. The best effect can be achieved by connecting procurement software to tour AP Automation solution, streamlining the entire workflow from purchase to payment.
Find out more about Palette AP Automation here.