As part of our AR/AP series, today we will uncover the four mistakes enterprise companies should avoid when moving their technology to AP Automation. Most enterprises no longer need convincing that automating tasks generally improves efficiency within an organization.
We know that by automating tasks such as the accounts receivable process a company’s financial operations improve. Other benefits include: a decrease in fraudulent cheques, a more efficient method to meet industry regulations, reduced Days Sales Outstanding (DSO) and improved liquidity.
One issue that enterprises seem to run into is actually switching over their AR (Accounts Receivable) and AP (Accounts Payable) to a digital system. Going from a paper-based system to a digital one can be overwhelming. Let’s take a look at four mistakes to avoid when moving to AR and AP automation, and later on, we will dig into what Automated Solution providers such as MineralTree, Stampli and Nvoicepay can do to make this process smoother.
Mistake #1 Not prioritizing “Must-Haves”
Don’t make the mistake of not being sure of the must-have benefits regarding AP automation, according to Innovia Consulting. They warn that by skipping this step companies are more likely to choose software that doesn’t solve the biggest problems.
Make a list of non-negotiable features that a software must have to compliment the business and accounting process. For example, if the focus is workload management, choosing an AR Software (and of course AP software) that enables accountants to manage large numbers of invoices will be most beneficial.
Ensure to test the adaptability of software during the software vendor demonstration to confirm that it will solve the company’s issues. As well, check that the software is compatible with all invoices and accounting workflows.
Mistake #2: Not Ensuring Software Compatibility
From there it is imperative to discuss how the AR/AP automation technology platform will integrate with the current Enterprise Resourcing Planning (ERP) Software. Key areas to consider include: any limitations on ERP software, the technical compatibility of the software and if or what upgrades are required for successful integration.
To find out: During the trial phase, test how the software automatically uploads invoices and supporting documents directly into the ERP system. If the process runs smoothly then time is saved on manual data entry, and in the end, save the company money. If it doesn’t then more software must be tested.
Mistake 3: Not Training Enough People and Not Getting Everyone on Board
Make this accounting automation move exciting for the entire accounting team by openly sharing the value and benefits to key stakeholders. They’ll have less mundane tasks to do, so they can pour their energy into more rewarding endeavours.
If possible, train all of the accounting team on the new software in case one person resigns or has a medical issue; it’s not ideal to remain dependent on one or two people to keep the software running smoothly.
Ideally, a morale boost will occur within the accounting team. And that spillover effect will hopefully spread throughout the office and even to customers. It’s thrilling to automate accounting—get everyone on board.
Mistake #4: Not Focusing on the Future
This problem is twofold. Let’s take startups for example. In the early days, most startups avoid formal processes. They’re seen as an unnecessary stifling of creativity. But this culture of risk also creates room for disruption. Naturally, these types of companies need a road map that will evolve with them. So, first, pick the correct road map.
Secondly, focus on future software roadmaps when incorporating AR/AP automation technology.
Double-check that the software will meet the company’s needs in the next five years. Is it scalable? Will the software scale with the current growth trajectory? Check the software provider’s roadmap to see if future digitization needs align and if the software provider plans on innovating their technology further.
Completing the AP Automation Software integration
The final step in full-cycle AP automation is automated electronic payments. Eliminating the manual work of vendor payments—like signing and mailing physical cheques—can bring the process full circle to achieve a higher level of data visibility and control.
By having a built-in payment system, it truly makes the experience quicker and more seamless. In fact, 45% of businesses view slow payment completion times as one of their main pain points.
At VoPay, as we continue to expand, we support AP and AR automation through our partnership programmes with the leading providers across North America, by offering a one-stop source for all payment needs. We’ve partnered with Automated Solution Providers, who are already offering their customers a streamlined and digitized process, and joined forces to offer a complete full-service offering—without having to switch between multiple platforms for AR/AP and payment services.
VoPay offers several embedded payment methods to compliment AR/AP automation, including: Automated Clearing House (ACH), same-day Electronic Funds Transfer (EFT), Interac e-Transfers, Visa Direct, and Credit Cards.
VoPay partners trust our platform and see that it is transforming how enterprise companies are managing payment processing. With best-in-class API payment technology and Open Banking verification solutions, enterprises can unlock better tools for digital payment processing.
To learn more about our Enterprise API Solution and our Partner integrations, get in touch with a payment expert today.
We look forward to speaking with you!