YQA – Isn’t AP Automation Just for Big Companies?
- Posted by: David Watters
- Category: Best Practices
Over simplified answer:
AP automation technology has come a long way and is now more accessible than ever and with 72% of organizations spend as much as 520 hours per year on manual accounts payable tasks the opportunity to drive real time and cost savings is huge.
In more detail:
The COVID-19 pandemic has shocked many businesses into re-thinking how they buy and sell goods and services. Automation has rapidly become a way for businesses to drive efficiencies and stay competitive during the current global downturn. Indeed, it is widely accepted that effective accounting and payment processes can have a major impact on the revenue and profitability of a business. With improved management helping to drive down costs and save money. Lets dive into some of the myths that is causing small and medium-sized businesses to overlook AP automation.
Myth # 1 AP Automation will cost the earth and change very little.
AP automation technology has evolved and so have the deployment options and business models available to businesses. Many of which are far less capex heavy and work on a subscription-based model. Consider the following questions when assessing a platform:
- Can your chosen platform scale with you, as you grow?
- Does your chosen platform offer a pay-as-you-go type model?
Myth #2 If it ain’t broke, don’t fix it.
AP is often seen as a ‘black box’ which serves their business well, by many executive teams. A report from Inspyrus identified that while 93% of front-line staff identified several faults, half of C-suite execs thought their AP process worked “just fine”. Businesses are overlooking an area that can drive real savings, simply because they lack the data and insight to identify the issue.
Myth #3 We do not need it.
A paper-based invoice process consists of several manual activities that can be automated. This enables greater control and visibility within the finance function. Especially at a time when AP fraud continues to be a growing concern. According to MineralTree, 68% of executives reported that they had received a fake invoice or experienced some other attempted form of payments fraud. AP automation eliminates invoice fraud, utilising set digital approval workflows and automated data checks.
Accounts payable automation that drives costs down and charged on a pay-as-you-go model is available to businesses of any size.
Organise a free demo today -> www.valtatech.com/apcloud/