Why Successful Companies Automate Their AP Processes
Updated: Oct 1, 2018
We have all read business school case studies about companies that failed to keep current with technology, and what we have read is not typically pretty. Companies like RIM (Blackberry), Nokia, Barnes & Noble, Kodak and Blockbuster are just some of the recent companies that come to mind. Their reluctance or unwillingness to adapt had catastrophic consequences.
A benefit of installing accounts payable software is that the risks involved are low. That’s because you are deploying a document management system that is now considered mainstream, proven and reliable. You also are positioning your company for future growth without the need to add additional people to your legacy AP process.
On the other hand, failing to implement AP automation opens your company to a number of different risks.
You will remain inefficient. Many studies have been conducted that prove that automating your AP processes saves a minimum of 50 percent in operations costs.
You will continue to be less nimble to react to cash flow issues, take advantage of early pay discounts and be able to proactively manage your payables process.
You will find it more difficult to attract talent if you have old and outdated processes. According to a study by Glassdoor, employees want to work for companies that are progressive and forward-looking.
Even if you only have one or two accounts payable clerks, automation still makes sense. If you have valuable workers, then free them of the laborious tasks of keying information from an invoice into your accounting software. Put them in more value-added positions where they can grow professionally and have a greater impact on your organization.
Begin taking control of your processes. Stop paying the same invoice more than once. Start taking advantage of early payment discounts. Have the ability to see into the future to understand your cash flow needs. Never again miss paying an invoice on time because you did not know it existed.
In other words, join companies like Cousins Subs, American Equity Life Insurance and Martin Bros. Distributing who have gone through automation and are seeing the benefits of an on-demand accounts payable solution.
To learn more, please contact us.