WHERE WOULD YOU RATHER HAVE YOUR MONEY?
IN ACCOUNTS PAYABLE OR IN THE BANK? IT’S A NO-BRAINER ISN’T IT?
The very mention of the word “invoice” and its connotations are enough to make almost anyone shudder in 2017. But do they need to come with the headaches and sleepless nights many associate with processing and paying them? The simple answer…no.
The vast majority of businesses (of all sizes) currently sit aheaad of the curve having adopted sophisticated software to ensure they hit maximum productivity and opportunity for success. However, many have yet to uncover the benefits of introducing automation processing software.
SO WHAT IS INVOICE AUTOMATION PROCESSING?
Invoice automation processing is a form of AP that pays inbound invoices by way of scanning, interpreting and filing the data provided. The only downside is that invoices for accounts payable still need to be scanned into the system – so a manual element still exists.
Additionally, the various fields on an invoice can also be scanned into the software, so that it becomes accustomed to capturing and registering specific fields.
WHY SHOULD I GET AP INVOICE PROCESSING SOFTWARE?
Automating your invoicing processes streamlines your day-to-day business operations – in turn, saving you both valuable time and money, as well as a number of other benefits we will run you through now…
Previously, manually processing an invoice could take around 10-40 days. This expanse of time is extremely costly for an organisation – regardless of size.
A recent study by The Aberdeen Group notes that an AP user can process about 20 invoices per day, which is a phenomenal saving in time and subsequently money and labour. This can also mean an end to those dreaded late payment fines for missed payment deadlines.
Having this extra time can then lead to more scope for increasing your business’s productivity. Additionally, this means that this reduces your number of staff needed for this mundane process, allocating your accounts employees to more valuable tasks that will move the business forward, rather than being bogged down with menial day-to-day tasks.
REDUCES HUMAN ERROR
In a time where Artificial Intelligence is all the rage, businesses are being actively encouraged to automate day-to-day processes through the use of innovative technology. This is particularly poignant with monotonous tasks such as invoice processing.
Only one entry is needed for AP software to pay an invoice, as opposed to the various steps normally required to be input manually. Decreasing the number of manual sends decreases your chance for human error – thereby improving communication with clients and conveying an air of reliability and quality assurance.
NO MORE LOSSES
Where would you rather have your money? In accounts payable or in the bank? It’s a no-brainer isn’t it?
AP will firstly save your business money by taking advantage of pre-payment discounts. 2/10 net 30 for instance is a discount for payment within 10 days. These discounts are a benefit for AP software users, which are not available when processing manually.
Access to your accounts also becomes significantly easier too – the elimination of paperwork reduces the amount of time you’d be spending sifting through files. This also helps you keep better track of all your payments, as you’ll be less likely to lose or accidentally discard any important invoices. This type of data also includes:
- vendor data
- payment details
- workflow status
- the audit trail
- line item information
- tax data
AP software also significantly reduces the need for paper, which means that you are doing your bit for the environment and showing that you are eco-conscious. It really is a win-win situation.
In terms of saving money, it’s perhaps unsurprising that a recent Gartner report found that typical invoice processing paper costs in the UK can be up to £25 per invoice and in some cases, as high as £50, so this can be a massive saving if your company have a long list of invoices to pay each month.