According to a report published by the Institute of Finance and Management (IOFM), employees responsible for accounts payable (AP) spend 84 percent of their day at the office processing invoices.
This reality shows that the process is inefficient and broken. Many companies of varying sizes still opt to pay vendors using traditional approaches like mailing a paper check. In doing so, businesses are losing up to $54 billion annually in transaction costs. An additional $25 billion goes down the drain due to bank deposit fraud.
These figures demonstrate the need for companies to change their accounting processes through automation. Manual processes come with inherent downsides, such as inefficiency and the risk of abuse. The procedures are often lengthy and cumbersome as staffers need to handle invoices, make copies, and submit the paperwork to relevant departments for approval.
The exception loop continues for a considerable amount of time, depending on the presence of a discrepancy or denial following the review. Hence, the need for companies to Get Yooz, a cloud-based accounts payable automation solution.
Automating accounts payable processes makes it easier to update addresses and assigning order numbers. Digitization enables businesses to take advantage of the electronic transfer of invoices to the AP team. The system automatically links the invoices to a purchase order. In some cases, the coding and approval processes are automatic, allowing the scheduling of electronic payments without delay.
Reports show that automation can assist most businesses to handle approximately two-thirds of invoices seamlessly. When implemented appropriately, AP automation processes all invoices, and the benefits are considerable.
Companies opting to digitize accounts payable tasks derive financial benefits by reducing processing costs by over 80 percent. These savings can boost the bottom line, allowing the business to invest in productive activities. It is no surprise that some firms enhance their growth potential thanks to such cost-cutting measures.
Reduced manual processing
AP automation minimizes time spent processing invoices and payments. In turn, the reduction in workload frees up time for the AP staff to focus on other tasks. This advantage is particularly true for firms that automate all their invoices. Staff no longer need to worry about payments as the system pays invoices electronically without human intervention.
Limited processing errors
Digitization provides a viable way to mitigate the risk of fraudulent activities and human errors during invoice processing. Manual data entry can result in mistakes, which can cost the business time and money. On the other hand, digital solutions come with machine learning capabilities that can detect attempts at fraud.
Availability of analytical data
With AP automation, small and large firms can take advantage of increased availability of real-time data. The system records all invoices as they arrive. Management teams gain access to accurate data that is available instantly.
Additionally, migrating to cloud-based accounts payable automation solutions like Yooz helps improve financial management. Companies find it easier to identify financial requirements with a few clicks of the mouse. As a result, businesses benefit from enhanced financial decision-making and agility.