Is your business management stack missing an AP automation solution? It’s surprising how many organizations are still cutting hundreds of manual checks each month.
Manual AP processing is time-consuming, error prone and can leave your business open to fraud. It’s also a huge business expense, as it can cost between $8 to $10 to print, ship, review each invoice.
This cumbersome process can result in:
- Fragmented and siloed systems and information
- Strained supplier relationships
- Multiple processing errors
- Poor cash flow visibility
- Payments fraud
Driven by a desire to mitigate the risks of payments fraud, the pace of implementing AP automation solutions is picking up. According to an IOFM survey, businesses plan to increase ACH transactions to 38 % of their supplier payments and virtual card payments to 16 %, within three years.
By implementing an AP automation solution, businesses can:
- Limit who can approve payments
- Automatically separate operator duties like verifying vendors and initiating payments
- Create audit trails of all activities within the system
- Easily reconcile transactions more frequently, increasing the chances of spotting any fraudulent payments
- In some cases, you may even be eligible to make a margin back on the transaction fees
AP automation provides real-time visibility into all processes, lessening the risk of fraud and eliminating human error from your AP processes.
Fraud is a particularly costly problem for smaller businesses.
The ACFE report shows that businesses with 100 employees or less, suffered an average loss of $200,000. This is almost double the loss of $104,000 reported for companies with 100 or more employees.
In addition to mitigating the risk of fraud, automating AP also:
- Provides enhanced cash flow visibility by collating a wide range of metrics required for cash management. These insights allow stakeholders make smarter, better-informed decisions.
- Streamlines processes by providing a single platform/interface for managing spend. This also leads to quicker approval of invoices, which your suppliers will love.
- Increases productivity; an average time savings of up to 60% of the time spent processing invoices weekly.
- Increases visibility over the entire AP process.
- Lowers invoice processing costs by up to 29%.
An AP automation solution can free your accounts payable department from a paper quagmire, reduce your exposure to risk and help you streamline the payment of invoices.
At Admiral Consulting Group, our team is here to help you find the right AP automation solution for your business. To learn more about how we can help, call 732-257-7440 or contact us here.