Is AP automation right for you? Find out some of the benefits and what common issues that can be addressed.
AP automation is a valuable tool for improving any accounts payable department. Many companies begin to look into AP automation in order to speed up their accounts payable processes, but it offers more benefits than just speed. If your company suffers from any of these common issues in your accounts payable department, consider automating your AP processes to help.
Compliance Issues
Manual invoice processing is a long and tedious process and as taxation and regulatory issues continue to expand, it will become even more so. AP automation allows you to simplify your processes, removes many opportunities for error, and makes it easier to audit your system as needed.
Cash Flow Monitoring
Automating your AP processes allows you to keep a closer watch on your big financial picture. You will be able to track where any given invoice is in the process without calling or emailing people to track it down. This improved visibility into you finances will also help you identify areas where you need to tighten your processes and new opportunities to save money.
Invoice Processing Costs
While most business owners will automatically accept that you have to spend money to make money, most medium sized business spend $10 to process each invoice manually. Small businesses spend closer to $15. That is a lot of money. This is because of the amount of time it takes to process invoices by hand: opening, sorting, inputting data, reviewing, validating, and so on. Many of the steps can be automated, which saves you labor costs. In most cases, automation will cut processing costs by half, if not more. Automation can also decrease the incidence of lost or double-billed invoices, which could be costing you money. Invoices that are misfiled often cost about $120 in labor to find and those that are lost cost nearly $220 in labor to reproduce, on average.
Long Invoice Processing Times
The lengthy process of handling a paper invoice isn’t just expensive, it is also time consuming. When invoices are physical, they may sit for days before being opened and they have to be physically maneuvered through the approval process – including being couriered between approvers. This slows the process considerably and often means that you never have the change to apply any early payment discounts. In fact, the average paper invoice takes 20-45 days to be processed. By automating many parts of the process, that average time drops to 5 days.
Have Questions? Micro Records is Here to Help
If you have more questions about document management software, Micro Records is here to help you with all of your needs. We can help your business to transition to a paperless way of life with outstanding e-forms and technology. For more information about how we can help you implement your new document management software, visit us online or give us a call at 877-410-SCAN. For more tips, tricks, and to see what we have been working on, be sure to follow us on Facebook, Twitter, LinkedIn, and YouTube.