It’s not a surprise that the Accounts Payable (AP) teams can level up the game with automation. More than just paying bills, AP automation solutions wield influence over cash flow, fraud security, and supplier relationships. However, the effectiveness of your AP team hinges on their approach. Many teams grapple with manual processes, leaving little room to enhance cash flow or prevent errors. Paying bills becomes a nightmare, taking weeks instead of days. The good news? It doesn’t have to be this way. AP automation paves the way for a more efficient and effective AP team, unburdened by unnecessary delays and errors. Let’s explore how it can change the game for your AP processes.
Top Reasons You Should Invest in AP Automation Solution
Manual handling of invoices and payments can be a significant drain on resources, both in terms of time and costs. Here are nine compelling reasons why automating your accounts payable process is not just a wise investment but a strategic imperative.
1. Bolster Your Bottom Line: Save on Costs & Achieve Greater ROI
In the relentless pursuit of financial excellence, businesses are increasingly turning to automation to streamline their accounts payable workflows. Manual processing, particularly of checks and invoices, incurs significant costs. For instance, the manual cost of processing a single check is a hefty $5.00.
It is astonishing to observe the continued prevalence of check payments in the United States. Recent survey indicates that businesses in the US still write a staggering 19 billion checks annually to pay vendors. These checks account for most transactions, including payments between customers and businesses, business-to-business transactions, and business-to-customer payments. However, the inefficiencies inherent in this conventional system come at a significant cost, with each transaction amounting to approximately $65. When multiplied by 19 billion, this translates to well over a trillion dollars spent on inefficiency-related problems in the US. Imagine the immense potential for growth and progress that businesses could unlock with those financial resources.
With faster payment processing and reduced processing times, automation not only saves costs but also drives a greater return on investment.
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