Elevating Operational Performance With Accounts Payable Automation
3 Way Match In Invoice Processing
Organizations that rely heavily on manual processes for invoice matching and accounts payable (AP) automation can be in for an expensive surprise when it comes to maintaining both financial and operational efficiency. Despite the potential for significant cost reductions and improved organizational workflow, business can struggle to make the transition to automated systems. C-suite decision makers, who are looking to leverage widely-available software for way matching in invoice processing, need to understand the significant return on investment that AP automation presents.
At an organizational level, AP automation can drastically reduce labor costs, resolve the issue of human error, and significantly improve workflow and operational performance. Automated systems can improve payment accuracy, help to avoid disputes and discrepancies, and can provide single platform for gathering and reviewing invoice information a process that can usually be completed in half the time when compared to manual processing. Even more significantly, AP automation can increase visibility by inserting automation tools directly into existing accounts payable systems.
While the benefits of AP automation are numerous, the majority of day-to-day operations will still be manual the key is to maximize the efficiency of the automated process to improve financial and operational performance. There are few different ways to achieve this; three of the most important are:
Integrate pricing strategies: Using software as tool for establishing pricing strategies allows for streamlined processes for AP staff, leading to significant gains in efficiency. By taking into account the cost per transaction of each payment, organizations can effectively lower their operational costs and increase their profitability.
Implement filtering techniques: Automated filtration techniques allow organizations to quickly and easily identify the most cost-effective payment options. These techniques can help to reduce the time and effort AP staff need to allocate to researching invoices and allow them to focus on process refinement and administrative tasks.
Leverage historical data: Utilizing past financial data to create predictability and eliminate guesswork can also greatly benefit organizational performance. Historical data can be used to make informed decisions in accounting, budgeting, and forecasting.
Ultimately, the decision to take on AP automation rests with organizations? C-suite executives. By understanding the importance of accurate tracking and analysis, as well as account reconciling, business can leverage the available software to streamline their operations, improve financial performance and provide holistic approach to managing accounts payable process.
Though the transition to accounts payable automation can come with some upfront cost, having the right software in place can lead to unprecedented gains in operational performance. As the costs associated with manual processing continue to increase, the need for software-based 3-way matching in invoice processing is clear. Organizations who want to remain competitive in todays ever-changing economic conditions need to take advantage of the opportunities that AP automation provides.
