Most people would agree about the importance of a stellar accounts payable (AP) process. However, AP still lags behind many areas when it comes to businesses investing in upgrades and optimizations that could make otherwise subpar AP processes seamless. Many businesses are still meddling with a manual accounts payable process that desperately needs some TLC. Not only is a manual AP process tedious, but it also runs the risk of being prone to errors.
Luckily, there is Nipendo – a company that specializes in automating accounts payable, RFx processes, and invoicing – which can provide the exact services you need to ensure all your financial “ducks” remain in a row, without any unnecessary headaches.
WHAT IS AUTOMATED ACCOUNTS PAYABLE (AP AUTOMATION)?
AP automation utilizes the magic of modern technology to do exactly as its name suggests – to automate the routine (tedious and time-consuming) steps involved in everyday AP operations. Such steps include but are not limited to receiving invoices, coding, routing for approval, payment, reconciliation, and more.
Although the way that automation works is nuanced, the general explanation is that a special software created explicitly for AP automation handles each of these steps, which would otherwise require a human, manual input. For example, this “super-software” can do things like converting your invoices from suppliers into a digital format, which then allows those invoices to be sent through a digital framework (AP process) that ultimately ends with the (super easy) payment of said suppliers.
If you thought the invention of hands-free phones was a modern technology breakthrough, this essentially “touch-less” process will blow your mind. So, why exactly is it so much better than its manual predecessor? Let us count the ways.
WHY AUTOMATED AP GIVES ORGANIZATIONS A COMPETITIVE ADVANTAGE
At its core, AP automation technology was created to enable businesses to adopt a far more efficient, speedy, and error-free way to keep account of – and better handle – their finances. The first giant step toward this was getting rid of the old school manual processes of traditional AP (think endless piles of papers and more nightmares). This ultimately saves businesses time and money, reducing days sales outstanding (DSO), and much more. And speaking of money, a particular plus of automated AP is the impressive return on investment attached to it. When the need for manual effort is essentially eliminated,
automating your AP can drastically decrease your company’s processing costs. Yet another benefit is that it can assist you in scaling your AP as you grow since you won’t keep needing to hire more accounting employees as you expand operations.
Further positives of AP automation include the tools it provides that enable you to more easily – and precisely—manage payments and your company cash flow. Need even more reason to make the shift to automated AP? How about the fact that doing so results in a much smoother audit experience and lessens the chance of fraud and operator error?
• To reiterate some of the competitive advantages of automatic AP:
• Greater efficiency on your team
• More time (and time is money)
• Less manual work
• Less errors
• Reduction of outstanding funds
• Manage cashflow more easily
• Scale AP when your team grows
HOW TO IMPLEMENT AP AUTOMATION
Once you’ve selected the right AP automation software for your business (a process that will include planning, defining your company’s goals, creating a list of requirements, and selecting vendors that meet these requirements), you are ready to implement Automatic AP.
We suggest holding a meeting to define specific roles, delegate responsibilities, and set certain deadlines that need to be met to stay on track during the switch. Once roles are defined and expectations of all included parties are clear, making a training program available to everyone will be crucial so that all employees can be educated on how to use the new software as IT and AP are working on their (back) end to orchestrate a seamless transition, too. This part of implementation is crucial and will determine whether your company’s user adoption rate is adequate or abysmal.
ACCOUNTS PAYABLE AUTOMATION MADE EASY WITH NIPENDO
Nipendo’s Accounts Payable Solution can not only save your business time but can also improve control and increase overall productivity. To find out more about how Nipendo can help you automate invoice processing and payment, and take your AP process to the next level, check out our website for more information or simply give us a call today. We are here to help make your life – and business – easier.
Manual accounts payable has been plaguing businesses for years, but it doesn’t have to. Optimize your AP process and see how much time you save. The update will be worth it, we promise.