Is Your A/P Department Operating at Its Full Potential?
If your business is like most, your AP department is wasting time, money and ecological resources with processing paper invoices. You’ve probably heard about the benefits of having a paperless accounts payable system, but with all the paper currently in AP, it seems downright impossible to go paperless. Yet Accounting Process Improvement begins with paperless AP!
While switching to a paperless accounts payable process can be a challenge, those challenges can be mitigated by doing it right from the outset (and by using a knowledgeable vendor to help you make the switch). Going paperless in the accounts payable department has advantages across the board (check out the infographic below).
Once you’re convinced heading toward a paperless accounts payable process will help your company, one of the first steps is digitizing your accounts payable process. You’ll need to take stock of your current process, figure out your paperless goals, get everyone who’s involved on board with automation, and finally begin implementing your vision for a paperless accounts payable department.
How does your AP Department measure up?
Document policies and procedures should provide segregation of duties, role based security, vendor discounts, safeguarding check stock, frequency of check runs, level of authority, dollar limits for multiple signers and transaction level logging.
- 34% of companies indicate that vendor invoice discrepancy resolution is the highest pain point in managing trading partner satisfaction!
- 36% of companies had an indication of check fraud!
- What is your error detection system?
- 4% of invoices contain errors.
- High automation companies have saved 70% of the cost to process vendor payments.
- Companies that switch from paper to electronic save $5.46 per invoice.
Current Assets - Current Liabilities = Effective Management of Working Capital
“Our customers see an immediate improvement in control with Paper Alternative AP Automation. If they were using paper files, they really didn’t know who had access to the locations the files were stored—even a janitor might be able to get into them. Once we take their records digital, they have full control. They even have an audit trail of who touched what and when, where, and why.”
- Michael Coppola
Improve your efficiency, enhance control, and save money with paperless AP! You'll boost efficiency, ensure control and save money.
Running your A/P Processing at its full performance potential contributes to lowering your operating risks and costs from financing activities.