Optimizing Operational Performance With Accounts Payable Automation Technology
PROCURE-TO-PAY TECHNOLOGY
Business operations within the modern era are continually searching for more efficient and cost-effective methods to enhance their visibility, agility and workflow. To this end, the implementation of accounts payable automation technology is increasingly being utilized by finance executives as viable option to streamline the procurement-to-payment process.
An AP automation system utilizes powerful algorithms for data capture, significantly reducing manual data input and therefore drastically shortening the time involved in the procure-to-pay cycle. Additionally, numerous other advantages accompaniesuch technological componentation, from audit compliance and cost savings, to risk management and increased security.
Renowned financial research firm Oxford Economics estimated that an organization with low AP automation efficiency (meaning those without an AP automation system) waste an average of 140 hours annually on accounts payable matters. Through adopting AP automation technology, the same organization is likely to stockpile these hours and generate greater returns on their investments by increasing operational performance.
Furthermore, the elimination of paper-based systems within the AP unit inherently reduces the manual labor associated in managing documents and invoices. Not only that, but it empowers organizations to generate reports and track spending with real-time data. Such transparency and accountability is especially desirable for larger firms, as it provides an all-inclusive overview for management and, more importantly, serves as base for elucidating areas of potential growth and improvement.
AP automation technology has the potential to alleviate number of common pitfalls that organizations face on daily basis. From data entry errors to laborious manual intervention, more businesses are now recognizing the convenience and agility presented through the use of automated systems. In order to optimize their workplace and create improved efficiency, finance executives must understand the benefits of such technology and incorporate it as part and parcel of their procure-to-pay operations.
