P2P In Accounting: Optimizing Operational Performance Through Accounts Payable Automation Software
P2P IN ACCOUNTING
By embracing automation, organizations benefit from more efficient, accurate, and cost-effective operations. From Product-to-Payment (P2P) perspective, automation software helps optimize every step of the process from invoice processing and approval to payment disbursement and reconciliation.
One major advantage of automation lies in improved visibility to cash-flow. Automation software reduces manual error and human oversight which can result in unanticipated costs, disruptions to cash-flow, and in some cases, under utilization of early payment discounts. At the same time, an automated system simplifies single account reconciliation and improves overall accuracy of AP performance.
Automation can also improve an organizations ability to track AP costs, analyze spend, and build better business relationships with suppliers. Because data is readily available, organizations are better able to identify, reduce, and monitor supplier costs, as well as better manage credit checks and supplier maintenance. This ?black box? information is essential allowing executives to evaluate future funding decisions based in transparency, while simultaneously improving vendor relations and increasing savings.
A strong accounting system is even more critical in the case of automated accounts payable processing, as the system is highly dependent on data accuracy. Automation software offers enhanced integration, generating more comprehensive and accurate data, eliminating data silos, and streamlining reporting. Combined with Payment Terms and Tax Code automation, AP automation software can reduce processing costs by helping to meet functional, taxation, and legal obligations.
Besides the short-term benefits of the automated accounts payable, automation also offers organizations long-term advantages. Specifically, it allows employees to focus on core revenue-generating activities. As AP processing becomes increasingly automated, the costs associated with manual labor operations are reduced, allowing more employees to perform more value-added activities.
To sum up, implementation of Accounts Payable Automation Software leads to improved financial performance in the P2P process, greater visibility to cash-flow, better control of supplier costs, and increased capacity for high-value activities. Financial executives readily recognize the advantages of automation, encouraging organizations around the world to move to automated solutions, and thus, optimize operational performance.
