The accounts payable process team in any organization is often seen burdened with a high volume of invoices piling up on their desk. However, manual processes has lead to increased invoice processing time. Hence, this has also resulted in incorrect payments, inefficient invoice data capturing, etc.
But here is the good news, with the advent of AI, the entire accounts payable processes can be automated, making it streamlined and efficient. Therefore, here are some of the strategic advantages of automating your accounts payable process:
Processing the invoice becomes less time consuming, without which it could take close to 2 weeks to process it otherwise. With the automation process, the duration could witness a considerable drop in processing time. According to a Hackett report,
“By streamlining end-to-end processes and supporting the workforce with digital tools, Top Performers require less than half the full-time equivalents (FTEs) of other organizations and are 2.5 times more productive on a per-FTE basis. They also process invoices in 3 fewer business days”.
Because of manual calculations and too much inter-departmental communications, there always is room for error.
Accounting errors and imperfect invoices do damage the setup. In addition, it also causes damage to the image of the company. With the process getting automated, the system can identify inconsistencies and smoothen the communication process by giving all the parties digital access to files.
According to a recent survey conducted by HSBC and Forbes Insights, 44% of respondents reported increasing operational efficiency is their top growth strategy for 2020.
Following compliance regulations and creating traceable audit trails are essential for the accounting teams’ success. Electronic archives made possible by invoice software enable tracking invoice locations, processing stages, authorization rules, and compliance with IRS regulations. It makes it easier to secure filing and protection of all your invoice processing information.
Manual filings and a stack of papers has become very time-consuming. Therefore it has become impossible to witness the entire process on one single document. Automated systems help increase visibility by showing relevant data to authorized personnel only.
It might take some time to get the staff accustomed to the new automated systems. However, there are benefits like increased ROI in the long run. Moreover, the streamlined cash flow processes can help the organization prevent any maverick spending. The organizations make the most out of potential savings.
When all the parties have access to the digital files, and when the process is automated, it results in an improved workplace collaboration. Hence, this helps smoothening the workload, which results in serving customer needs more efficiently and promptly. Thereby, improving workflow collaboration would result in lesser disputes and better communication, giving a boost to the workflow.
The increase in ROI and the financial benefits obtained from the process automation help you gain an upper-hand over the competition. What also adds to the competitive advantage is the time saved and the reduced errors, thus enhancing accuracy.