Beyond the Bottom Line: 10 Unexpected Wins with Accounts Payable

Organisations are constantly looking for ways to improve productivity and simplify their finance procedures in the fast-paced corporate world of today. Accounts Payable is one industry that has seen substantial change (AP). The way organizations manage their invoices and payments has completely altered with the advent of accounts payable automation.

Let’s explore the top 10 benefits of Accounts Payable Automation that are driving this change.

1. Shorter Processing Time

The time required to handle invoices is significantly reduced, which is one advantage of automating accounts payable. Level Research states that processing an invoice by hand usually takes 18.4 days. This can be significantly decreased by automation, enabling companies to process bills more quickly and effectively.

2. Cost-cutting Techniques

A major cost reduction potential is one of the most alluring benefits of automating accounts payable. Procure to Pay (P2P) automation, according to Ardent Partners, can result in up to 80% in cost savings. The bottom line of a business might be significantly impacted by this cost decrease.

3. Enhanced Precision

Aberdeen Group reports that the average error rate for manual accounting procedures is 14.4%. Among the many benefits of automating accounts payable include a marked reduction in these errors, more precise financial records, and a reduction in the labor-intensive process of error rectification.

4. Improved Observation

One of their main problems is the limited visibility into invoice and payment status that standard AP systems provide. Real-time visibility into the entire accounts payable (AP) process, from invoice reception to payment, is one benefit of automating AP.

5. Improved Cash Flow Management

Businesses are more adept at managing their cash flow when they have access to greater insight and faster processing times. One of the main benefits of automating accounts payable is that it shields businesses from late fines and early payment incentives.

6. Enhanced Output

Automating monotonous operations allows account personnel to concentrate on more strategic work. IOFM states that the longest finance process is accounting for profits (AP). This implies that automation has the potential to significantly boost production.

7. Better Vendor Connections

Faster invoicing and payment results in improved rapport with suppliers. Seventy percent of businesses claim that P2P automation has improved their relationships with vendors and allowed them to save money. This information comes from Deloitte.

8. Improved Records and Adherence

Automation makes it easier to comply with organizational standards and regulatory obligations by giving every transaction a clear audit trail. One of the biggest benefits of automated accounts payable for companies in highly regulated sectors is this.

9. Scalability

Accounting procedures must adapt to the needs of growing companies. Automation allows AP operations to scale rapidly and easily without hiring more people or spending more money.

10. ESG Impact

Accounts Payable automation helps a company’s environmental initiatives by lowering the demand for paper and storage. This is in line with the increasing attention that environmental, social, and governance (ESG) aspects are receiving in company operations.

Conclusion

The adoption of AP invoice automation is indeed a revolutionary practice that has several benefits, which include the reduction of cost and the maximization of efficiency within an organization. While undertaking this journey , it is essential to choose the right APA solution that will help in realizing these advantages and enable businesses to operate competitively in the current complex world economy.

Cherrywork AP Automation (APA) is the ultimate AP automation software with a host of advanced capabilities. By leveraging intelligent automation, Cherrywork APA eliminates manual invoice processing, ensuring faster and more accurate results. Its AI/ML-powered features, such as advanced OCR and natural language processing (NLP), provide touchless document capture with 95% accuracy.

The solution also enables you to be compliant with global regulations and taxes by supporting both post –audit and live clearance models. Most importantly Cherrywork APA has real-time integrations with both SAP and non-SAP ERP systems making data validations easy. It comes with an easy user interface and has excellent vendor support for making it a tool of choice for anyone looking to automate their AP processes. To get an understanding of our product, Book a demo today!