It’s becoming increasingly apparent throughout the pandemic that automating processes significantly helps a company’s efficiency. Moreover, it helps the bottom line.
By automating the accounts payable process a company’s financial operations improve. Automation has many benefits including an overall value add to the accounts payable process, a decrease in fraudulent cheques and a more efficient method to meet industry regulations.
Almost all businesses are familiar with paper-based accounts payable methods, but for this article, we will focus on AP (Accounts Payable) Automation and the cost savings associated with this method. We will also dive into what’s next for Automated Solution Providers and how they can enhance their business.
#1 Cost Savings per Invoice
When moving from manual processing to AP automation, one of the best measures of cost savings is to figure out the cost savings per invoice.
According to the Institute of Finance & Management report, companies on average spend close to $9.00 to process one invoice. Compared to $1.77 per invoice when a company utilizes automated services, saving business up to $7.00 per invoice. That does not include labour costs.
#2 Saving on Labour
Labour costs are a bit trickier to calculate, but you’ll likely be surprised at the total cost of paying staff for a task that can be automated. Moreover, that precious time can be spent on engaging tasks that staff will enjoy.
Look at how many people it takes per week to process an invoice. Then calculate the hours spent times their wage in one month.
Hidden costs to look for: Cost of paper, stamps, and time wasted waiting on paper invoices to be mailed out or received. Plus, accounting software and security systems.
#3 Qualitative Benefits to Going Automated
Deloitte and Blue Prism wrote a report that highlighted the qualitative benefits to automation, and contrary to what people generally associate with AI and automation, the benefits were shockingly beneficial for the company and their employees.
Improved customer experience: Enables organizations to make better use of customer data to improve customer experiences by anticipating their needs.
Greater return on human capital: Creates new organizational capacity, which can be repointed
at more complex or higher-value tasks. For example, an employee manually approving purchase orders can shift focus to negotiating better vendor pricing if the approvals are automated.
Acceleration of innovation within an organization: Can trigger organizations to make “big bets” in next-gen intelligent automation workforce capabilities and enable the entire organization to become better at adopting a “test and learn” mentality and quickly identifying new use cases to monetize.
What’s Next for businesses?
The future is automated. In order for businesses to scale the stage needs to be set for success. And that includes digitizing services that are currently being done manually. We haven’t come across one report that highlights the benefits of manual processing. Going automated will: cut costs, allow for growth and boost employee morale, among other benefits.
The future of AP Automation
AR (Accounts Receivable) and AP automation solutions providers such as Plooto, Beanworks and Stampli are already offering their customers cost savings through streamlining and digitizing their account payables. Many of these AP enterprise solutions have made significant growth in their payment innovation over the past few years by offering multiple payment options including account-to-account payments along with faster payment processing through integrated technology. Businesses can reap the benefits of one complete full-service offering without having to switch between multiple platforms for AR/AP and payment services.
VoPay’s Payment-as-a-Service platform is transforming how enterprise companies are managing payment processing. With best-in-class API payment technology, real-time payment processing and open banking verification solutions, AR/AP enterprises can unlock better tools for digital payment processing for their clients.
VoPay’s Integrated Payments Features:
- Send and collect payments directly from your AP/AR software integration
- Intelligent Open- Banking payments with multiple payment rails
- Bank account verification tools
- Real-time transaction visibility
- Lower payment processing costs
- Advances analytics and 24/7 reporting
- Tokenization security
- API Integration or online payment portal
Looking for a flexible and robust payment API to integrate into your AP/AR automation platform? Simply integrate our straightforward and well-documented White Label API. If you’re ready to find out how our payment technology can enhance your business growth, get in touch today to arrange a time to meet with one of the payment experts.
We look forward to speaking with you!