Unlock Operational Efficiency With Accounts Payable Automation Software Solution
PROCURE TO PAY VS SOURCE TO PAY
Advances in accounts payable automation software have been garnering traction as organizations seek to reduce cost evaluation, identify value-add opportunities, and increase accuracy. When navigating the differences between source to pay (STP) and procure to pay (P2P), it is important to analyze the functions, key features, and capabilities of each solution in order to optimize business objectives when seeking comprehensive automated accounts payable solution.
STP solutions focus on organizational efforts to attain performance objectives through unified platform. By centralizing spend data and analytics into single point of access, efficiencies are realized across purchasing, planning, treasury, and finance enabling strategic sourcing, budgeting and forecasting, contract lifecycle management, supplier management, and invoice management.
P2P solutions, on the other hand, are focused on automating accounts payable processes such as invoice tracking, invoice approval, purchase order generation, and account auditing. By streamlining mechanical processes and functions, firms are able to realize operational cost savings and Workday efficiencies. Additionally, organizations are able to build proactive and robust compliance controls to ensure accounts payable is correctly routed and managed from inception to initiation.
An optimal accounts payable automation software solution will possess the features and functionalities to bridge the gap between STP and P2P. At the base of the solution should be collective set of processes to track and manage spend effectively; rules-based workflow to ensure accuracy and compliance; and integrated data capture and analytics to assess performance in real-time. By leveraging one-stop shop approach, firms can gain visibility into operational spend, hit performance targets more reliably, and competently address billing errors and invoices.
Furthermore, as firms move up the value chain, they should look for solution that provides scalable options through digital transformation initiatives, shift to supplier connectivity, and automated payments. robust accounts payable automation software solution should provide cloud-infrastructure for all financial documents, eliminate the need for manual data entry, and offer context driven ML-enabled analytics for transaction insights.
For Finance Executive considering solution to improve operational performance, the choice between procurement to pay and source to pay can be difficult one. Identifying an accounts payable automation software solution that can bridge the gap between STP and P2P, equip organizations with comprehensive tracking and management that is compliant, efficient, and cost effective, is the key to unlocking operational excellence.
