If a company has used the same process for a long time, it’s understandable that change will be hard. But when accounts payable automation promises so many benefits in terms of cost savings and processing efficiency, there’s no reason why a company shouldn’t consider a change. Although there are many myths surrounding accounts payable and automation, the Aberdeen Group’s Reap the Benefits of Invoice Excellence with AP Automation
helps to debunk them. Consider the five most common myths of AP automation: 1. “Our AP process is already efficient.”
Many companies who have never experienced an automated payment system haven’t seen just how easy it can be. The organizations who implemented an AP automation system processed a staggering 24,171 invoices, compared to the 5,886 invoices processed by a company without an automated process. Similarly, companies with AP automation saw a more efficient straight through process rate of 52%, compared to the 32% for companies without. This means that companies who automated saw a more effective and streamlined process of receiving, validating and approving invoices. 2. “We can just use our bank for AP.”
Sure, you can use your bank for a basic bill pay solution, but unfortunately many banks don’t integrate with accounting packages. Automated AP platforms also ensure policy compliance with tools like automatic-flagging, disapprovals, and inquiries. Plus, with an AP automation specific platform, users have access to features like analyses reports, ERP integrations, automatic data parsing and more. 3. “If we automate the process, we will have less control.”
What many accountants are unaware of is that by implementing an automated platform, fewer mistakes are made, simply by eliminating human error. In fact, the error rate (the percentage of invoices that are completed without incorrect information) for companies using an automated AP system was 6% lower than that for companies without. 4. “Using a cloud-based system, it will just be more expensive than if we used our staff.”
When companies use an automated system, they can cut their payment processing costs nearly in half. By automating the system, you can reduce overhead in several ways, including: labor, collection fees and more. In fact, the Aberdeen Group found that companies using a cloud-based AP platform paid $5.13 per processed invoice, and those companies without were paying $10.55 per invoice. 5. “If we use an automated system, it will take more time.”
Companies that have adopted a cloud-based AP system don’t only enjoy a more efficient process, but they see processing times 3x faster. In fact, the followers who hadn’t implemented an automated version could expect a processing time of nearly 18 days, compared to only 6 days for companies using an automated AP platform.
We get it, change is hard. But if your accounts payable team is swamped under an inefficient process, the cost of processing invoices is increasing, or you’re simply ready for a change, an automated AP platform could be the answer.
Certify is proud to offer an accounts payable invoice management system
that seamlessly integrates into the leading Certify expense management platform. It’s easy to configure, and will make invoice processing a breeze. Ready to find out more? Contact
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