5 Benefits of Automating AP Processes and 3 Tools to Make It Happen
How can your company streamline its AP activities with other core functions? We've listed 5 benefits and 3 tools to make that process happen.
When it comes to accounts payable (AP) it’s imperative that the accompanying activities be automated. It is through automation that errors can be decreased, which improves overall profit margins, and as businesses continue to grow, so do their activities, making it all the more important that financial information be expedited and better managed.
Businesses with automated AP processes reap a number of benefits:
- Able to process 55% of invoices electronically
- Reduce days to process and invoice from receipt through settlement by 4 days
- Save $16.97 on the average cost to process and invoice
- Pay 59% of invoices to secure a discount (45% more than companies lacking automation)
- Save 5.4% more annually by capturing early payment discounts
If you lack integration between your cash flow and documentation, that can lead to lower profit levels and reduced visibility across the entire organization. To overcome this issue, it is imperative that AP activities be streamlined so that both the supplier and customer can maintain a common view.
Constant visibility needs to be maintained throughout all AP activities so that cash deployed can be minimized, and instead, cash can be used to invest in a company’s core operations, thus improving quality and customer service.
So the question is, how can your company streamline its AP activities with other core functions? The answer is simple; ERP.Â
ERP solutions like Microsoft Dynamics NAV and Microsoft Dynamics GP are well known for delivering high accuracy rates, with one of the reasons being that paper trails are minimized, meaning there’s fewer pieces of paper to get lost. And with less human contact needed to process AP, this results in a lower per-transaction cost, thus improving profit levels and cash flows. ERP also enables faster processing thanks to electronic invoicing. Faster payment processing leads to happier customers and improved cash flows within the organization. It’s also with ERP that your company can enjoy better security within its transactions thanks to enhanced compliance and protocols.
The three key elements to an ERP solution that will have the most impact on improving your business through automated AP processing are:
- Electronic workflow – streamline the process for approvals, exceptions, and interventions as a foundation for all other AP automation
- Business Analytics – equip AP process owners to be more proactive with real-time analytics and dashboards
- Self-Service Portals – increase automation and eliminate paper by using self-service procurement portals for online buying
If your company is looking for a way to improve its AP activities, the implementation of ERP should definitely be considered. By leveraging ERP to improve your cash flow and reduce errors, your AP processes can start moving you forward instead of holding you back. And don’t forget that once you automate the AP processes, your financial department can then focus on other core financial operations.
Get pricing for Microsoft Dynamics NAV and Microsoft Dynamics GP ERP solutions HERE!
Hear How This Organization Automated Processes with Microsoft Dynamics ERP
Source: https://www.aberdeen.com/research/9854/RR-electronic-payment.aspx/content.aspx
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