The 9 surprising benefits around automating invoices, procurement, and Accounts Payable systems

The unexpected circumstances around our modern life have certainly acted as a catalyst for technology and systems to evolve rapidly.

It's true that change is just a fact of life, and business, but the way an organisation is able to adapt to such an unprecedented event like a global pandemic could mean the difference between failure and success in the long run.

The concept of remote work - being able to effectively complete your work duties from anywhere, was previously seen as a perk reserved for employees at the most progressive organisations. However, with the global changes that unfolded in 2020, working remotely became a number one focus of businesses everywhere.

A new world

Historically, Accounts Payable has been regarded as a back end function to a business, primarily set in the ways of very manual methods of processing supplier invoices.

Recent years have called for large changes in AP functions, and there have been some game-changing innovations leading the way for companies to completely overhaul the way they do business.

Having a working from home backup plan in place for your role is simply the way of the world now, in order to ensure you and your team are ready for even the most unexpected of circumstances.

With the pandemic throwing work life into chaos, and making traditional office life impossible for extended periods of time, we've seen Accounts Payable teams across the world scramble to overhaul their highly paper-based systems and find a remote working solution.

For the teams who already had cloud-based AP systems in place, a transition to working remotely was a small step with no need to compromise on efficiency or quality.

Make manual processing a thing of the past

Manual Accounts Payable processes that are heavy on paper are not only a huge roadblock to remote working, but they are expensive and inefficient. The hours wasted on chasing paper copies of invoices, unnecessary data entry and manual approval of transactions could be much better spent on value-adding tasks.

AP leaders must act now, to put in place a secure, transparent cloud based system that allows for the unexpected. Empower your team by freeing up their time for more rewarding and meaningful tasks.

Cash flow is the lifeblood of your business, so why would you keep so much of it tied up in ineffective and inefficient AP processes? Particularly after witnessing the world being thrown into turmoil, now more than ever, it's vital to get automated and be prepared for anything.

The Accounts Payable office of the future is disciplined and focused on cash flow and payment terms. It is strategic when it comes to spend management, and comes with far lower compliance risk.

Streamlining your processes will allow you to pay on time, every time. Not only will this strengthen relationships with your suppliers, but you will also be able to secure early payment discounts.

Alarmingly, in a recent Chrome River survey distributed among 500 finance professionals, 40% of them planned to slow down or stop payments to vendors during the pandemic. Imagine the flow on effect of that. More concerning is the fact that it was avoidable, simply by having efficient systems in place.

Accounts Payable is at the core of your relationships with suppliers. Paying on time has a bearing on maintaining supply chains, and now more than ever, this is at the top of the list of AP priorities.

Being able to rely on long, healthy relationships with suppliers can be key in these unprecedented times. The New AP department aims to nurture these relationships, ensuring prompt payment, fast onboarding (without compromising on fraud controls) and value sharing.

The vision is clear

It is no secret that visibility is a huge factor in profitability and performance, but it's importance has grown exponentially in the new AP department. Access to accurate data and KPIs is the only way to access your financial health and make the best decisions for your business.

Gain a clear picture of;

-       Cost to process each invoice 

-       Time to process each invoice

-       Number of invoices processed by each team member, per day

-       Percentage of invoices linked to a purchase order

-       Invoice exception rate

Lack of visibility is one of the pitfalls of manual AP systems. In the world of automation however, you can have access to end-to-end visibility on cash, productivity and trend forecasting. Better still, this can all flow smoothly without interruptions or bottlenecks.

Strategic initiatives around automation

The concept of Accounts Payable Digitisation coupled with AI driven automation, is not a new one. However in recent times, AP strategy has been at the forefront of discussions around the financial health and ultimately the success, of businesses everywhere.

An indication of how rapidly the landscape has changed, is a study from just three years ago reported only 1 in 10 AP leaders anticipated their role to become more strategic. This has now nearly doubled.

On the other side of that, those that anticipated no change have dropped from almost 50% to approximately 33%.

As Accounts Payable becomes more integral to the success of an organisation, the need for advancement grows. What we are finding is that although automation has been available for some time, it has been slowly adopted and has left many organisations unnecessarily vulnerable. On the flip side, early adopters were able to transition and as a result, their supply chains and bottom line went largely unaffected.  

What’s next?

As businesses head into the future with an uncertain economy on the horizon, transitioning to electronic processing is absolutely critical to survival, as you will be;

-       Building stronger relationships with suppliers

-       Keeping suppliers, customer relationships, and supply chains open and collaborative

-       Optimising cash flow

-       Providing flexibility to your team

-       Enhancing fraud protection

-       Enabling remote working with ease

-       Eliminating unnecessary paper costs

-       Ensuring transparency across all functions

-       Track and trace costs, quality, inventory, and orders, and finances

Overall, manual processes only have the ability to work when staff and documents are in the same location. When there is a disruption to business, global pandemic or otherwise, any operations which rely on manual Accounts Payable functions can completely break down.

It's time to act now, to move towards the future in the best position you possibly can.