Payables: Improving Operational Performance With Accounts Payable Automation Software
PAYABLES
For those in the C-Suite tasked with ensuring corporate success, optimizing operations is essential for meeting budgetary and performance goals. Automating accounts payable processes using software holds tremendous potential for achieving improved operational performance. This article outlines the rationales for adopting an accounts payable automation software and techniques for successful implementation.
First, it is important to understand the financial benefits associated with transitioning away from manual processing. study by the Aberdeen Group found that organizations achieve numerous cost savings from automating payables processes such as reduced paper handling, fewer invoices processed by personnel, reduced processing time, and fewer errors in processing. In fact, the study suggests that organizations automate 69% of their process, leading to more accurate invoice information, improved vendor relations and significantly improved cash conversion cycle (CCC).
Automating the accounts payable process also reduces human error which can cause host of payment issues including late payments, lost invoices and incorrect payment information. By relying on software, organizations can be assured that the entire process will be seamless and accurate, minimizing all associated risks.
When introducing accounts payable automation software, starting small is the key to success. Automating the payment process may appear to be an overwhelming task and taking step-by-step approach ensures that there is proper time for user testing and identifying bugs before rolling it out on larger scale. Take the time to ensure proper buy-in from all team members who will interact with the software, as well as those who will be responsible for its successful implementation.
Additionally, use software solution that is backed with best practices to ensure smooth and successful transition to an automated system. The right software should facilitate quick and accurate invoice processing, offer comprehensive data insights and allow workflows to be customized for specific requirements. Automating payables processes usually requires connectivity with other systems and applications, such as enterprise resource planning, so comprehensive and well-rounded solution is important.
To ensure successful adoption of accounts payable automation software, it is important to look for user-friendly tools and processes that will offer quick ramp-up for all users. The intuitive nature of the software should also minimize friction in the onboarding process and provide an engaging experience for users.
Finally, successful accounts payable automation system deployment requires close monitoring of the process once it is in place. Automation technologies offer significant advantages when it comes to traceability, monitoring, and tracking processes. Use analytics and reporting to ensure that any discrepancies are noted and addressed quickly.
In summary, accounts payable automation software offers substantial financial and operational benefits; when used properly, it can lead to improved efficiencies throughout the payment processes leading to reduced risks and higher efficiency. Start with small implementation and use intuitive and user-friendly systems to ensure successful adoption and monitor closely to ensure performance meets expectations. When implemented correctly, accounts payable automation software can be powerful tool in increasing operational performance.
