Every crisis has a silver lining, even in the case of a global pandemic. For businesses that means an opportunity - indeed, a necessity for most - to update their existing structure and workflows. For many this means a more rapid transition to digitalization. In the case of accounts payable, an accelerated drive to become more efficient and smarter. That's where accounts payable automation takes center stage.
“Efficiency and intelligence are AP’s pandemic game-changers”, advisory firm Ardent Partners declares in its report on the State of ePayables 2020. “For the AP industry, the ‘age of intelligence’ means that global businesses will be able to draw actionable knowledge from the invoice, payment, and supplier data that resides within ePayables systems and make smarter decisions.”
AP automation serves two important tasks. First, it drives operational efficiencies by doing away with costly and time-consuming manual processes which in turn reduces the opportunity for errors and fraud as well as significantly speeds up the entire invoice cycle times (which makes any business and their vendors happy!). Even better, going digital from a manual invoice process yields nearly immediate performance gains, and truly smart technologies such as machine learning or AI “provide next-level value beyond the eradication of paper”, according to Ardent.
However, there's an additional service that an automated invoice system provides to organizations; harness the true power of an end-to-end system and you have access to deeper analytical capabilities than any of your non-automated peers. This at-your-fingertips accessible, real-time, and more accurate data takes reporting and analysis to an entirely new level.
The CFO and other managers across the entire business have a big picture view relevant for topics such as liquidity and cash management, payment processes, vendor management, fraud, and compliance control. This advanced information establishes a baseline for and supports more accurate long-term decision-making.
With such clearly achievable benefits why would any organization delay moving instead of running forward? Two considerations come to mind. First, the cost of new technology has become less prohibitive with time. This is no longer the case. What used to be completely unattainable for a business (especially smaller ones) is now possible thanks to cloud-based and scalable options.
A cloud-based system eliminates the need for either increased physical space both for machines or document storage. No extra accounting bodies will be needed for manual processing and certainly none for chasing down lost documents or required signatures.
The second consideration is a little more complex. Moving forward on technology-based issues that require a physical and even a mental (mindset) modification requires investigation and careful planning. In other words, strategies.
Accounts Payable Strategies
Strategies are the basis for change. If you believe Ardent's claim that “In the face of extraordinary times and a challenging business climate, Accounts Payable groups have the opportunity to drive tremendous value and help the greater enterprise navigate these tough times” then rest assured, several of the recommendations they list will help to map a path back to an improved normalcy. Let’s take a closer look at them.
Revamp disaster recovery and continuity plans. As the return to a “new normal” is fluid and uncertain, finance leaders should use the learnings from the current disruption to prepare for future turmoil.
“In this new decade, AP groups will increasingly transform their operations into hubs of visibility and intelligence”, Ardent concludes. And that transformation “can positively impact financial operations and performance”.
The saying that knowledge is power holds true but in fact knowledge without action won't get the desired results. Once a business realizes the possible benefits they can achieve through new technology, once they understand a blueprint that will help them move forward, they still need to take action. That means researching and selecting an implementation partner who can create a customized system that will address business needs from start to finish. While this is a separate subject on its own a few things to keep in mind include:
Keep in mind that while AP automation covers several if not most of the strategies suggested by Ardent Partners, others are ways in which you can start to change the mindset of your business. This will help to ease change, improve moral, and most likely also result in a visible return.
Yooz is an end-to-end, cloud-based platform that uses the most advanced technologies to automate your entire invoice and payment process from purchase order to payment. This enables your accounting department to:
With all this now is a perfect time to get started with a successful plan of action to strategically move into or move further into the digital age.
Curious to learn more about ePayables trends and successful strategies to improve your entire Accounts Payable and invoice processing workflow?