Benchmark Accounts Payable: Maximizing Operational Performance With Accounts Payable Automation Software
Benchmark Accounts Payable
Gaining financial agility and optimizing operational performance are the primary goals of any C-suite executive, particularly those with oversight in finance. To achieve this, many organizations are turning to accounts payable automation software as reliable and economical way to streamline processes and generate significant cost savings. This article will explore the main components of effective accounts payable automation software and explain how, when used correctly, it can improve operational performance.
Integration of Automation Software
The most successful automation systems are those that are fully integrated with the organizations financial systems and purchasing platforms. This makes it easy to import supplier invoices and ensure accuracy and completeness. Automation credit and debit reconciliations, as well as payment processing, can then be performed in fraction of the time it would take manually. Automation software also eliminates manual entry errors and provides full audit trail that can be used to sustain compliance with both financial regulations and business policies.
Financial Visibility
With accounts payable automation software, organizations can gain high degree of financial visibility the ability to accurately track and report financial data from across their entire accounts payable processes. AI and machine learning technologies incorporated into the software can help detect potential process errors, reduce manual labor and identify purchase-to-pay optimization opportunities. Automated cash flow forecasting and analytics offer clear and comprehensive view of accounts payable activities and budgets, allowing for greater transparency and informed decision-making by business leaders.
Increased Efficiency
Accounts payable automation software can help reduce manual tasks and provide secure, accurate and consistent way to process supplier invoices. Automation tools can automate complex data entry tasks and provide improved accuracy of supplier codes, payment terms and currency. Automation technology can also enable dynamic discounting and accelerate late payments, improving payment terms and cash flow. Multi-currency payments can be made quickly and securely, reducing complexity, shortening payment cycles and avoiding unnecessary bottlenecks.
Cost Savings
Cost savings are critical goal when improving operational performance and accounts payable automation software can play an integral role in reducing costs. Automation reduces reliance on manual labor, eliminating the need for manual data entry, paper-based invoice processing and errors. With dynamic discounting, private payer discounts such as early payment discounts can be taken advantage of, bringing the potential for significant cost savings in the long term.
Accounts payable automation software can accelerate the invoice processing and payment cycle, and increase overall operational efficiencies. When set up correctly, automation software can provide consistent and secure stream of financial data, improved supplier relationships and greater visibility, as well as significant cost savings. As C-suite executive, it is important to assess the features and capabilities of accounts payable automation software and use it correctly to maximize operational performance.
