Managing your organization’s accounts payable (AP) processes manually is a labyrinthine, time-consuming process riddled with inefficiencies, error potential, and missed opportunities. By its very nature, traditional AP management is inefficient for your business. Paper-based invoices, manual data entry, and complex approval workflows hamper productivity and leave room for costly mistakes.
The solution to this challenge lies in embracing AP automation. AP automation streamlines and digitizes the entire invoice-to-payment process, elevating your organization's financial operations from accelerated invoice processing to optimized supplier relationships.
Read on to explore AP automation benefits, and how your organization can get started.
Technology-driven solutions are leveraged in Accounts Payable Automation to digitize and simplify an organization's whole process of managing invoices, confirmations, and payments. This includes automation of tasks such as invoice capturing, data extraction, approval flows, and payment processing. Software, machine learning, and AI are utilized to reduce manual entry, mistakes, and time taken to process. The goal is to boost accuracy, visibility, and efficiency for the Accounts Payable department.
Conexiom automates any steps within AP workflows where manual data entry or validation would occur. The AP automation platform easily handles emailed invoices and documents, extracts clear text for 100% accuracy, and seamlessly delivers data to ERP software, including the popular SAP Business 1 and Epicor P21. Investing in AP automation software provides manufacturers and distributors with significant benefits, such as increased profitability, speed, and accuracy.
Human error is a persistent challenge when processing invoices manually, and it can lead to many costly issues for organizations. These errors may include incorrect data entry, misplaced or lost invoices, and approval bottlenecks. By relying on technology-driven solutions, AP automation significantly reduces the likelihood of human error, resulting in more accurate and efficient invoice management. This saves valuable time and minimizes the potential for costly mistakes, such as overpayments or missed payment deadlines.
Conexiom’s automation solution reduces total cost per invoice by 49% and minimizes invoice errors caused by manual data entry mistakes. This allows your team to put an end to data entry errors, focusing on more significant problems instead.
Overpayment is also a thing of the past, as Conexiom’s AP automation entirely eliminates double payments. Ultimately, this lets your organization redirect resources toward strategic initiatives while maintaining the integrity of your financial operations.
With all the complexity involved in standard AP procedures, your AP team is likely understaffed and overworked. AP automation makes their jobs more accessible and streamlined, freeing them for value-added tasks and massive reductions in days payable outstanding (DPO). How sizable are these reductions? Conexiom’s AP automation solution can reduce total invoice processing time by 44%.
AP automation advances, like automated processing and routing, prevent invoices from languishing in email inboxes or on desks. With manual invoice handling, invoices can often become delayed or lost in the shuffle, causing delayed payments and affecting supplier relationships. AP automation swiftly captures, processes, and routes these invoices to your team. This new, streamlined workflow ensures that invoices are efficiently managed, payments are made promptly, and DPO are minimized.
AP automation streamlines invoice processing, reducing the need for manual data entry and approval tasks. This efficiency leads to a decreased reliance on human resources for invoice handling. By automating these tasks, organizations can significantly lower costs associated with hiring and maintaining a larger accounts payable team, resulting in low-cost invoicing.
AccuformNMC was able to leverage AP automation to process orders faster with 100% accuracy. This saved significant costs by reducing the expenses associated with order processing costs, and the company is now handling higher order volumes without requiring extra staff.
Manual AP processes are susceptible to fraud, such as invoice fraud or unauthorized payments; however, AP automation implements a robust system of access controls and permissions. This ensures that only authorized personnel can approve invoices and initiate payments. Enhanced transparency makes it easier to detect and investigate any suspicious activities. This heightened security protects against fraud and bolsters the overall integrity of an organization's financial operations. It’s a great way to foster trust with suppliers and stakeholders while mitigating potential financial losses and reputational damage.
AP automation brings a suite of improved analytics capabilities to your company. It increases data transparency by digitizing and centralizing invoice information, making it easier to access and analyze. Real-time monitoring capabilities enable organizations to track invoice processing, cash flow, and financial performance across the board. It simplifies auditing processes with comprehensive digital records, reducing the time and effort needed for audits. Additionally, the regulatory-compliant data storage inherent in many AP automation systems ensures that sensitive financial information is securely stored and readily available for compliance reporting.
The real-time access to invoice data provided by AP automation empowers your organization to generate financial reports faster and more accurately. It streamlines the reconciliation of accounts payable records, reducing the time and effort required for data aggregation. Automated AP processes ensure that financial data is consistently up-to-date and readily available, facilitating quicker decision-making and financial planning.
Maintaining good business relationships is another one of many AP automation benefits. Organizations stay in good standing with their suppliers by facilitating the timely approval and payment of invoices. The faster invoice processing cycle ensures that suppliers receive payments promptly, strengthening trust and fostering positive relationships. Additionally, automation reduces errors and discrepancies, minimizing disputes and further enhancing the rapport between buyers and suppliers. Timely payments through Conexiom’s AP automation solution let you capture 100% of early payment discounts.
Digital transformation is a priority for many companies, and this is easily facilitated by AP automation. It reduces paper usage and storage costs by digitizing invoices and related documents. It also slashes postage expenses as invoices can be processed and delivered electronically. With automated systems, there's no more risk of lost or misplaced paperwork, as all documents are stored and accessible digitally, streamlining operations and enhancing efficiency.
AP automation reduces data re-entry through seamless integrations with ERP systems, CRMs, databases, and financial systems, ensuring that data flows seamlessly between these platforms. By automating the transfer of information, organizations eliminate the need for manual data entry and reduce the risk of errors associated with duplicate input. This integration streamlines data synchronization, accelerates processes, and enhances accuracy in accounts payable operations.
With fewer manual tasks, AP clerks can focus on strategic, value-added work. This can lead to process improvements, cost savings, and a more agile and competitive organization in the long run. AP automation empowers your employees to contribute their expertise to areas that drive business growth and innovation. Using their knowledge for value-added tasks also keeps your employees happy and engaged– which ultimately helps keep them at your organization.
Conexiom brings all of these AP automation benefits– and more– to your company’s workflow. Wherever time, effort, and money would be lost on manual data entry, Conexiom can automate it. Let your employees work smarter, not harder, by automating the pain points in your AP process.
AP automation gives you the competitive edge to succeed in demanding industries. Roger Little, the CEO of Rexel, explains, “Conexiom is truly a differentiator between us and our competitors.”