Beyond Disruptions: A Deep Dive into AP Automation’s Role in Business Resilience
Have you ever considered how your business might withstand unforeseen challenges?
Picture this scenario: an unexpected disaster disrupts your operations, bringing what once ran smoothly to a grinding halt.
As catastrophic as this may sound, it’s not all doom-and-gloom. There is a powerful solution at your disposal. Enter Accounts Payable (AP) automation—a game-changer that can help to keep your critical processes running seamlessly, even in the midst of chaos.
What started as a traditional paper-based process has transformed into a dynamic powerhouse. But AP automation isn’t just a tool: it’s the process that businesses embrace to streamline operations and cut down on errors, as well as save time and money
It also happens to be an unsung hero during times of crisis, and a critical component of disaster recovery planning.
The Business Case for AP Automation
As businesses scale, the complexities of their financial operations grow, and manual accounts payable (AP) processes can become a roadblock to efficiency and growth. This is where AP automation steps into the spotlight.
Benefit 1: Saves Time and Reduces Errors
An essential part of building a business case for AP automation lies in its ability to save time and reduce errors. A study by Ardent Partners found that an average invoice takes up to 11 days to process manually but with AP automation, it drops down to just 5 days.1.
This means less time spent on manual data entry, fewer chances for human error, and quicker payment cycles.
The result?
You need less people to process AP and eliminate the mistakes made by the people who remain, which in turn, saves you time and money while letting you better cash flow.
Benefit 2: Cuts Costs
Regardless of the size of an organization, cutting costs always holds value. According to AIIM Research2, companies spend an average of $12 per paper invoice processed. But with AP automation suites like IntelliChief at play, this cost is significantly reduced, as these solutions are designed specifically to automate repetitive tasks such as processing invoices for payment.
In fact, a recent report from Levvel Research also states that high performing organizations using automated systems have seen approximately 81% lower costs per invoice than their peers3. This is a testament to the potential savings AP automation can offer.
Benefit 3: Enhances Supplier Relationships
Supplier relationships are key to any business’s success. Automated invoicing and payments ensure your suppliers always get their money on time, putting an end to lost or late payments and reducing the time spent by AP staff replying to inquiries on payment status or errors in payment amount.
The Role of AP Automation in Disaster Recovery Planning
Disruptions can hit a business at any time, but with accounts payable automation, companies can stay ahead.
Here’s how it can aid in disaster recovery planning to help ensure some semblance of business continuity during disruptions.
Business Continuity: The Role of AP Automation
No one likes interruptions, especially not businesses. When unexpected disruptions strike – from natural disasters to global pandemics – they throw a wrench into operations. But with AP automation, the gears keep turning smoothly.
The key lies in digitization. Manual paper-based processes are vulnerable to physical damage or loss. Imagine trying to retrieve invoices from an office engulfed by fire or flooded by a storm. With digital documents stored securely on cloud servers, your financial data remains safe and accessible, regardless of what’s happening around you.
Data Recovery and Protection
Digital storage is just part of the equation, however. Protection is another vital component that comes with AP automation for successful disaster recovery planning. With advanced encryption methods like AES 256-bit standard used for securing sensitive information against cyber threats, you’ve got double assurance, meaning protection from both physical damage and virtual attacks.
Apart from safeguarding your data against potential risks such as ransomware attacks or hacking attempts, automated backup routines also make sure all essential documents get replicated across multiple secure locations regularly without human intervention. So even if disaster strikes one server location due to unforeseen circumstances like power outages or hardware failure, there’s always another ready-to-go copy available elsewhere thanks to the backups provided through AP automation.
Remote Accessibility and Work Continuity
The recent global pandemic taught us that remote work is not just a trend, but a necessity. When offices shut down overnight due to lockdowns, companies with AP automation in place were able to continue their operations virtually seamlessly.
Why?
Because employees could access necessary documents from anywhere at any time. All they needed was an Internet connection.
Not only is this feature beneficial in the face of unprecedented events, but it’s also a great asset for everyday work. Imagine if a key team member is away from the office for personal reasons, or there’s an unexpected need for information while you’re on a business trip. It ensures continuity and efficiency no matter where you are.
Future Trends in AP Automation
AP automation is not a static field. Accounts payable automation is continually changing and adapting to the ever-evolving business world. This constant flux gives rise to new trends that are set to redefine how you approach accounts payable tasks.
The Rise of AI-Powered AP Solutions
A growing trend within the realm of AP automation is the increasing use of artificial intelligence (AI). As businesses seek more efficient ways to manage their invoices and payments, they’re turning towards AI-powered solutions for help.
This isn’t just some fad – there’s data backing up this shift. According to MarketsandMarkets research, the global AI market size will grow from $58.3 billion in 2023 to $309.6 billion by 2026 at a Compound Annual Growth Rate (CAGR) of 39.7% during the forecast period.
The reason?
AI offers several benefits over traditional manual processes:
- Precision: The risk of human error decreases significantly when you let machines handle your data entry work.
- Speed: Manual invoice processing can be slow and tedious, but with an automated system powered by machine learning algorithms, thousands of invoices can be processed every hour.
- Ease-of-Use: Machine learning models continue improving themselves based on previous interactions making them smarter and easier-to-use over time.
Moving Towards Real-Time Processing
We live in an era where speed matters: everyone wants things done now rather than later, even if ‘later’ means only waiting for a few minutes. This impatience extends to the realm of accounts payable, with businesses now demanding real-time processing.
Imagine an AP process that’s not just automated, but that also happens in real time. As soon as an invoice enters your system, it gets validated, matched, GL coded and vouchered for payment instantly with no delays whatsoever.
The need for quick satisfaction and effectiveness in monetary exchanges is continuously propelling advancement forward. And it’s this desire for instant gratification and efficiency in financial transactions that continues to drive innovation forward.
Conclusion
In the ever-evolving landscape of business, where unforeseen challenges are an inherent reality, the significance of strategic foresight and technological prowess cannot be overstated.
As you and your team contemplate the potential disruption of unexpected disasters, accounts payable (AP) automation emerges as an unsung hero, fostering not only day-to-day efficiency but playing a pivotal role in disaster recovery planning. From saving time and reducing errors to fortifying supplier relationships and ensuring remote work continuity, the benefits are tangible.
In the tapestry of business continuity planning, AP automation isn’t just a tool, it’s a narrative of transformation, adapting seamlessly to the evolving needs of businesses in an ever-changing world.
If you are interested in exploring more about AP automation – and more specifically, how IntelliChief can help – we invite you to schedule a complimentary 30-minute demo to learn more about our solution.
Unleashing the Power of Automation: Revolutionizing Accounts Payable with the Right Tools
In today’s rapidly evolving financial landscape, achieving fiscal agility is a paramount measure of success for enterprises. Socioeconomic factors such as the pandemic, inflation, and supply chain disruptions have compelled accounts payable (AP) departments to reimagine their operational strategies.
To embark on this journey of modernization, however, organizations need the right tools, which is where AP automation comes into play.
Top Challenges in Modern AP
Modern AP departments grapple with a range of tactical challenges in their daily operations.
In fact, a recent survey by Ardent Partners reveals some of the key obstacles impeding progress:
Additional challenges include manual and paper-based processes, high-volume invoice management, handling discrepancies and the approval process, limiting fraud and security risks, and maintaining effective vendor communication.
Costs Associated with Manual AP Processing
Processing accounts payable manually incurs various costs throughout the payment lifecycle. These include things like:
The Value of AP Automation
AP automation delivers substantial value by reducing labor costs, eliminating duplicate and late payments, enforcing business rules and policies, efficiently handling exceptions, improving vendor communication, and reducing training and education expenses.
Key Features to Consider
When selecting an AP automation solution, prioritize features that maximize efficiency and effectiveness, including:
Calculating ROI
At the end of the day, ROI is the cornerstone of your automation decision. There are two major approaches to calculate ROI:
The Current State of AP Automation
The AP automation market is rapidly expanding, with a forecasted 200% growth rate by this year. Many businesses are still in the “partially automated” phase, however, indicating room for scalability. Manual processes continue to prolong invoice processing times and hinder efficiency.
Security and Valuation
AP departments are frequent targets of cyberattacks and fraud, making robust security measures a “must.” What’s more, AP’s growing importance is reflected in how senior leaders increasingly view it as a valuable contributor to overall business performance. For example, automation can help businesses combat the effects of rising inflation.
What Lies Ahead
AP teams will continue to balance traditional methods with advanced technologies, focusing on improved processing times and accuracy. AP automation is evolving into a strategic hub of intelligence for businesses.
Conclusion
AP automation offers numerous benefits, including efficiency, accuracy, and significant cost savings. As digital transformation reshapes financial processes, selecting the right AP solution is paramount.
Change management is crucial, ensuring a smooth transition for your team. The question is no longer “when,” but “why not” AP automation?
To help you embark on this transformative journey, we’ve put together a guide that further expounds on the factors listed above so that you are poised to select the optimal AP solution, and set your organization on a path to financial freedom.
Experience industry-leading process automation with IntelliChief. Download our guide today!
Breaking the Routine: Navigating the Impact of Outdated AP Processes on Business Performance
Let’s face it: most of us are creatures of habit. We often take comfort in the familiar, even when it comes to the intricate details of business operations. Yet, clinging to the comfort of routine can inadvertently lead to the stagnation of crucial processes.
In this article, we will delve into the nuanced landscape of AP processes, and explore the familiarity of the old and the necessity for modernization. We’ll also:
Embracing change may be uncomfortable, but it is often the catalyst needed to propel businesses into a future of heightened efficiency, accuracy, and financial success.
The Impact of an Outdated AP Process on Business Performance
Running a business with an outdated accounts payable (AP) process is like driving a car that’s due for service. It might get you from point A to B, but the risk of breakdowns and costly repairs increases over time.
A streamlined AP process can be the difference between cruising in the fast lane or being stuck in gridlock traffic.
Here are some potential impacts your business could face if it doesn’t keep its AP process up-to-date.
Decreased Efficiency
The traditional AP process requires a more hands-on deck approach. Invoices must be entered by hand, checked for errors, matched, manually coded, and manually approved before payments can be processed.
This labor-intensive process takes time away from tasks that generate revenue or/or enhance customer experience since your employees are bogged down with paperwork as opposed to other core responsibilities.
Inaccurate Financial Reporting
Poor data entry or misfiled invoices caused by manual processes often result in inaccurate financial reporting. This makes budgeting difficult and creates headaches during audit season when figures don’t add up.
Automated systems reduce these errors, which results in more accurate reporting.
Cash Flow Issues
If invoices aren’t processed quickly enough due to inefficiencies within your current AP process, payments may end up delayed and cause cash flow problems, which has the potential to disrupt overall business operations.
A more modernized AP process offers real-time visibility into outstanding payables, which will help you to better manage their cash flow.
Increased Risk of Fraud
The risk of fraud is significantly higher with outdated AP processes since it’s easier for unscrupulous individuals to manipulate paper-based systems and/or take advantage of weak internal controls.
Upgrading your AP process can add layers of security, making it harder for fraudulent activities to occur.
Poor Vendor Relationships
If you’re late on payments, it can create tension and vendors might not be so willing to work with you. A more modern accounts payable process ensures vendors are paid in a timely manner, which helps to facilitate a better working relationship on both sides of the table.
6 Signs Your Business Has Outgrown Its Current AP Process
If your Accounts Payable (AP) process is causing more headaches than it solves, you might have outgrown its current state.
But how do you know for sure?
Here are some telltale signs to be on the lookout for.
Prolonged Invoice Processing Time
A sign that screams ‘outdated AP process’ is extended invoice processing time. If your team spends an excessive amount of time on receiving, verifying, matching, coding, or chasing down payment approvals , it’s a clear indication that your current process isn’t cutting it anymore.
An Increase in Human Capital Costs
Cumbersome manual processes require more manpower, which means a higher employee headcount. What’s more, the processes themselves are often riddled with errors, which then requires more training to address and overcome. AP automation simplifies and streamlines workflow, guiding staff members along the way.
Inaccurate Financial Forecasting
An efficient AP process should give precise insights into cash flow for accurate financial forecasting. If this isn’t the case and instead leads to unpredictability in budget planning due to late payments or unprocessed invoices, consider this another red flag.
Lack of Scalability
Your business needs room to grow. But if scaling up means more hours spent managing paper invoices manually, something eventually must give. A lack of scalability indicates a serious issue within your existing setup, which will have to be addressed at some point or another.
Error-Prone Manual Processes
Frequent mistakes like absent data and duplicate payments aren’t just irritating, they also come with a price tag in terms of both time and money. These issues point towards outdated processes that are in dire need of modernization.
Automating accounts payable is a proven way to reduce l errors and streamline operations.
Limited Visibility into AP Processes
If you find it difficult to track invoices – or if there’s limited transparency in your current process – you guessed it, this is another sign. An effective AP process should offer clear visibility at all stages of the process.
The Top 6 Benefits of Modernizing Your AP Process
A fresh approach to your accounts payable process can be a game-changer. Like swapping an old, rusted bicycle for a sleek electric bike, modernizing your AP operations will get you where you need to go faster and more efficiently.
Benefit 1: Saves Time
The right tech upgrades can help eliminate manual data entry. By doing so, you’re talking about giving back valuable hours to your team that could be used on strategic tasks instead. In fact, a study by Levvel Research revealed businesses with automated AP solutions report 80% lower processing times than those without.
Benefit 2: Enhances Accuracy
Typos? Data discrepancies? They’re all part of the past now.
With an upgraded solution like IntelliChief, errors due to manual input are significantly reduced. It’s like having an invisible superhero fighting off mistakes before they happen.
Benefit 3: Better Cash Management
IntelliChief’s intelligent AP automation solution can also give you greater visibility into your cash flow because let’s face it: who doesn’t want more control over their money?
Benefit 4: Cuts Costs
No one likes spending unnecessary money, and especially not companies that are trying hard to minimize expenses and maximize profits. Automated invoice processing helps save on costs associated with paper-based processes, like printing or postage fees. A recent Ardent Partners’ report found that businesses using automated solutions have seen invoice-processing costs decrease by up to 60%. That’s some serious saving power right there.
Benefit 5: Increases Productivity (and reduces manpower)
Eliminating manual tasks, while simultaneously improving accuracy, frees up time for you AP team to focus on higher-value tasks. Productivity levels increase, without the need to hire additional staff.
Benefit 6: Improves Vendor Relationships
No more late payments and no more unhappy vendors. Modernizing your AP process can help ensure timely and accurate payments, which can go a long way in building better relationships with the vendors you work with.
Conclusion
An outdated accounts payable process can feel like a broken treadmill.
Thankfully, there IS a light at the end of the tunnel.
Recognizing signs of an outdated accounts payable process is the first step. When you see them, it’s time to take action.
If anything outlined above feels like it’s hitting a little too “close to home” right now, we invite you to schedule a complimentary 30-minute demo to learn more about the IntelliChief solution, and how it could be the key to unlocking your company’s future financial success.
Beyond Disruptions: A Deep Dive into AP Automation’s Role in Business Resilience