Accounts payable automation and touchless invoice processing are two of the hottest buzzwords in AP departments across the nation. Paper invoices and manual processing are things of the past. The tedious and time-consuming nature of manual handling means the C-suite welcomes AP automation with open arms. Everyone is pleased to leave paper chases and lengthy inquiries behind when an invoice doesn’t match a contract or PO. But imagine further advantages such as accurate price/cost analysis, improved forecasting, and impressive discounts. Discover some delightfully unexpected benefits of accounts payable automation and touchless invoice processing.
Get to Know Touchless Processing
When AP pros refer to touchless invoice processing, they talk about an invoice process with no manual input necessary from when the invoice arrives until it posts to the ERP. Neither the AP department nor anybody else in the company needs to do tiring manual work. The invoice is automatically matched to the proper supporting documentation, such as a PO, goods receipt, or contract. Then the invoice is sent for payment without any human intervention. Accounts payable automation eliminates mind-numbing manual work and results in shorter lead times.
Cash Flow Forecasting
Knowing where the cash goes keeps businesses profitable, prosperous, and compliant with applicable regulations. Reducing lead times and automatic coding support means financial and cash flow forecasting is accurate and available in real time. The impressive result of all this insight is the easy month and annual closing processes.
The Utmost Accuracy in Cost Analysis and Pricing
Accurate pricing and cost analysis are crucial for companies to get the best deals from suppliers. Savvy organizations select the most affordable and responsive suppliers when this updated info is handy. The detailed and structured cost allocation to various items also improves its ability to price products and services more competitively with other industry providers.
Reduce or Eliminate Errors
Manual invoice processing means depending on human resources to accurately process seemingly endless stacks of documents. Human error is unavoidable, especially during such a tedious project. Countless invoices must be matched, processed, and approved in a short time. Accounts payable automation reduces or eliminates errors associated with traditional manual processing. The work is quickly and accurately accomplished. With streamlined processes, the AP team has more time for thoughtful and valuable activities instead of correcting mistakes.
Paying invoices beyond the due date results in penalties and added costs that hurt an organization’s financial picture. Late payments can also destroy supplier relationships and hurt the company’s credit rating. Conversely, rapidly paying invoices can mean capturing cash discounts. Suppliers appreciate timely payment and encourage it by providing discounts to savvy consumers. Taking advantage of suppliers’ discounts and rebates helps companies realize an ROI on accounts payable automation in less time than initially anticipated.
Touchless invoice processing and accounts payable automation are becoming the standard in progressive companies worldwide. Once considered cutting-edge technology, AP automation is the baseline many businesses adopt to save money and boost the bottom line.