Unlocking Operational Performance Through Payment Cycle Automation
PAYMENT CYCLE PROCESS
Executives in charge of finance are increasingly seeking effective solutions for improving operational performance by expediting the time-consuming invoice to payment cycle. In this article, we will explore how an advanced accounts payable automation software can provide the tools necessary for executives to make strategic decisions, reduce labor and payment costs, and retain supplier trust.
A well-designed payment cycle software helps streamline the entire accounts payable process from invoice submission to the payment of funds. The application helps to automatically capture, understand, process and approve invoices for accurate payments. The use of machine learning and optical character recognition (OCR) technology further enhances the speed of processing, allowing for fast payment and rejecting duplicate invoices efficiently.
The use of sophisticated software helps expedite record-keeping, eliminate manual entry errors and maximize the return on cash available by taking advantage of early payment discounts available from vendors. As result, executives can shift their focus from operational to strategic activities, achieving greater efficiency and improved operational performance.
Automation tools also come with functionality to generate summarizations of invoices by vendor, contract, and geographic area. This allows executives to review and compare vendor fees for contract negotiation, evaluate the bottom line of particular vendors, and have better visibility over the entire payment cycle process.
Better data and visibility into the payments process also allows executives to proactively engage with suppliers. Enhanced communication builds trust with suppliers and leads to collaborative efforts to optimize payments so that everyone is on the same page. This is especially important if cash flow is tight and early payments need to be discussed.
Using automation software to streamline the payment cycle process offers many benefits. It removes the burden of manual data entry and provides greater efficiency and accuracy. It creates more visibility into the payments process and creates better analysis and forecasting of data. Finally, it provides executives with the tools to make faster, better-informed decisions, become strategically proactive, and ultimately improve operational performance.
