The most sought-after CFOs and finance leaders are not only expected to oversee revenue and cash flow, but also act as strategic business partners who can offer insight into company decisions, assess risk, and provide valuable insight. These crucial job duties are frequently sidelined to oversee day-to-day financial operations and accounts payable (AP) workflows. With constant pressure to act as a strategic partner to the business, CFOs need to automate their team’s payables and bookkeeping processes so that they can focus on decision-making and leadership.
With AP automation tools, you can save immense amounts of time for you and your team and focus on more important tasks. Below are five reasons you should automate your AP.
1. Cut back on costly paperwork
An IOFM report found that the average company still receives 63% of its invoices on physical paper. 62% of these companies stated that they manually handle over 75% of these invoices. This manual paperwork process causes a handful of pricey and risky issues such as misplaced invoices, security and compliance errors, costs of paper storage, and mistakes in data entry. By using automation that encourages digital processing and allows for uploads of paper invoices, you can avoid these costly problems while also cutting down on the extra time it takes to process these payments.
2. Increase your team’s efficiency
On the topic of time-consuming paper invoices, AP automation can increase a team’s efficiency up to 27%! This dramatic change can not only save you and your team significant amounts of money but will give you more time to focus on more important tasks. Instead of being inundated by manual invoice coding and paper-based processing, your team will be able to focus on things like analysis and client interaction. In addition to the time saved in automated processes, the reduction in errors will further free time for your team to focus on things that matter most.
3. Save money
While the efficiency and time-saving allows your team to spend time on things besides repetitive AP processes, it also saves a significant amount of money for your company. According to a recent Levvel study, a single invoice without automation can cost $15, while automation can cut down on that cost by 85%. Those savings can be a huge benefit for many companies. Alongside that, you are spared many of the points of human error that can not only cost your company significantly but can strain relationships with your vendors.
4. Faster invoice processing time
The advantage your company can have over competitors by implementing automation and AI is a serious benefit to consider. In fact, according to the Journal of Accountancy, 80% of accounting executives believe that automation leads to a competitive advantage, and 79% think it leads to increased productivity for their company. The ability to schedule timely payments and maintain a positive relationship with your vendors can’t be underestimated. Also, the ability to scale into the future to allow your AP team the flexibility to process significantly more invoices can lead to an exponential future return on your investment.
5. Future-proof your business
You may be thinking that this sounds like a product that may be more common in the distant future, however, these technologies are quickly being implemented in companies around the world. According to Business insider, 44% of businesses are considering adding automation to their payables processes so they can capitalize on the efficiency and cost-cutting benefits. Being the last to adopt technology can lead your business to lag behind.
Automate your AP processes with Routable
Different technology companies have implemented distinct ways to roll these technologies out to your team, but many don’t allow you the advantages of Routable. Our AP automation software was designed to specifically reduce cost, clutter, and risk to help finance teams succeed. Our easy connection process into your accounting software allows for two-way syncing that keeps your general ledger updated and makes reconciliation simple. This process keeps you from any valuable downtime when you make the switch. To help you maximize your time, Routable’s friction-free payable software gives you the option to email, scan, or upload any bill or batch file. These functions allow your team to process one or thousands of payments so that you don’t have to worry about capability as your company scales. The two-way sync also keeps your accounting software up-to-date and makes reconciliation significantly less manual.