[This article was written by Marissa Levin.]
When development plans get drawn up for a business, accounts payable (AP) doesn’t always stay at the top of the list needing attention. However, this is an error, as AP is considered an essential business operation in maintaining that internal method flow smoothly and ensures your vendors get paid on time.
Lacking the right technology could make you feel like your procedures are ineffective. It might help you realize this critical piece was overlooked for too many years and might be holding your business back from growing into the future.
Major AP Pain Points of Business Growth
In a growing business, there are multiple pain points for a non-automated AP department. Archaic methods allow many errors like late payments, failed transactions, or even duplicate charges which take time to resolve.
Also, it lacks insight into your company’s procedures from an optimization standpoint. When interest charges begin to add up, leaders and employees very often shoulder the blame or issues. But with automation software, they are now asked to react to the invoices as they arrive in the system.
Now, symptoms of a dysfunctional AP process will not fix themselves. The expenses your organization might incur can prove to be horrible if they are left unattended for too long.
Automation Will Help Scale Your AP
Over the past few years, finance teams all over the globe have introduced multiple technology platforms, which aim to streamline and automate competencies and the methods historically performed by humans. Organizations have started searching for new ways to gain and improve their competitive benefits.
In accounts payable, there is always a sizeable opportunity to improve upon the present state of functions. Electronic invoicing and data capturing are some of the major technologies to break the traditional process of paper-handling in AP. Invoices can be easily scanned, matched, and approved all within a user-friendly application.
With the ever-increasing rise of big data, there has been an incredible acceleration of the digital transformation of AP processes. No more manual entries, automation of accounts payable solely enhance efficiency, changes it into strategic centers for corporate insights, and ultimately supports the organization’s bottom line directly as well as cash management.
Automation technology is essential for business development to scale not only accounts payable methods, but also support business growth effectively for overall success. Traditional and ineffective methods are doomed to add costs onto your bottom line and could risk the organization’s competitive position in the market.
Why it’s a Win for CFOs
In the era of digital disruption, CFOs must navigate through multiple technologies for their business to scale quickly and more strategically than ever before. Although technology can act as an accelerant, CFOs need to choose wisely which technology they should invest in to prevent project failure.
AP automation can fit the bill as an excellent investment for the future. It can perform more tasks and monitor everything with the same employee headcount, minimizing manual and paper-based expenses, and freeing up employee time to support financial control directly from the solution.
The availability of robust applications for managing AP tasks makes them simpler to complete with the new system without needing to depend on over-taxed IT resources. Once the cloud-based AP solution is up and running, the CFO has instant access and complete visibility into the business as the dashboard is updated with the latest data from the ERP system and accounts payable process, so that everyone in the company has real-time data.
The operations department gets granular insight over business habits to spot bottlenecks in the invoice process and resolve them quickly. Vendors also feel the impact of an automated AP process, with their access to view the status of invoices and verify a dependable payment schedule.
Scale AP and Grow Your Business
Digital evolution is now upon us, and companies resisting modernization will likely fall behind their competitors. Very often, organizations focus on trying to find a fix for all projects as a significant part of their business growth plan. A robust AP solution focuses on several key factors that would be helpful for the organization. Factors like a vendor portal and easy electronic invoicing with payment automation.
These features usually become a lengthy implementation project with substantial customization requirements. However, if you can set up the system with your specifications, it will ultimately save your organization time and money.
The opportunity to set up a growth plan of success with accounts payable automation software cannot get ignored. It is important to begin the project by acquiring visibility into your current AP and financial methods. Take your time and effort to educate your team on the advantages and how a new system fits into the organization’s plans to scale.
Marissa Levin is a marketing consultant, freelance writer at SutiAP, who regularly writes articles on Business, Finance, ERP, and Cloud/SaaS tre