Improving Operational Performance With Accounts Payable Automation
Processing Vendor Invoices
Forecasting quantifiable financial benefits from accounts payable automation is becoming increasingly compelling for Finance Executives. Softwaresolutions in this space have the potential to streamline payment processes, reduce redundancies, and dramatically boost operational performance. Here are some steps to consider when optimizing Software for Processing Vendor Invoices:
1. Assessing Your Current State: The first step towards identifying areas for improvement is correctly profiling the current state of your Accounts Payable process. Analyzing invoice cost and lifecycle time will help develop visibility of inefficiencies and lead to better strategic decisions.
2. Evaluating You Vendor Pool: Deep dive into the accounts payable histories of vendors to determine buying frequencies, lifetime net spend, and payment terms proliferation in your vendor pool. This will help to establish an sourcing strategy based on preferred vendors and better payment terms.
3. Leveraging Automation Technology: Automation technology, such as Artificial Intelligence (AI) and Natural Language Processing (NLP) are capable of automating manual effort, accelerating invoice processing, and recognizing vendors based on regulations and policies.
4. Improving Tandards and Policies: Establishing and reinforcing terms, standards and payment policies will provide greater control on payment terms, reduce manual effort and exposure to costly risks.
5. Achieving End-to-End Visibility: Last, but not least, having complete end-to-end visibility is the key to achieving full operational effectiveness. This means having complete control over invoice creation, authorisation process, and automated payment processing.
In conclusion, Accounts Payable Automation offers Finance Executives the potential to realize significant cost savings, reduced vendor management and faster payments. To get the most out of Accounts Payable Software, it is important to assess the current state, evaluate your vendor pool, leverage automation technology, improve standards and policies, and achieve full visibility.
