May 03, 2016
So, you’ve read through the top four reasons to automate accounts payable, but you still need more reasons to finally abandon the way things have always been. Great. Here are four MORE great reasons to get your organization to leave inefficiency, inconvenient and unnecessary costs behind.
In the second part of this two-part blog series, we’ll look at reasons that go beyond efficiency and reduced cycle times to explore how automating AP helps your finance department and AP staff focus more on supporting corporate goals and less on paperwork and red tape.
Reason #5: Reduce Errors
When it comes to accounts payable, errors can be extremely costly. And without an automation in place to maintain process controls, errors can occur at any time, for a variety of reasons that aren’t easy to isolate and eliminate.
Industry statistics tell us that less than 4% of AP invoices, on average, are tied to process errors—but the cost of resolving errors just in terms of time and effort is 10x that of a typical invoice. Whether errors are a result of loss of misfiled documents, or data entry errors, issue resolution is costly and time-consuming. Factor in the potential financial cost of duplicate payments and overpayment and the potential ROI from reliable AP automation that validates data entry and identifies exceptions and errors is immeasurable.
Reducing errors isn’t just about lowering costs, though. Quality in any organization is as much about an over-arching philosophy and sense of mission. Organizations that routinely approach operational flaws and find ways to isolate and eliminate them will continuously improve, ultimately leaving the competition behind.