A majority of A/P departments indicated that invoice processing could be sped up, and more than half thought it could be more accurate. According to the survey results, human errors, by both the A/P and Procurement departments, are the biggest cause of accounts payable errors, yet many are still bound to manual processes. More than one-third still handle invoices manually or through a spreadsheet.
Breaking Free from the Manual
A majority of the companies in the “Lost in Transaction” study believe that moving toward higher levels of automation will improve profitability, and they think that A/P automation is a reliable method for reducing payment and accounting errors.
Process automation provides significant business benefits and gives A/P departments peace of mind through increased visibility and control. It not only helps A/P increase invoice accuracy and decrease late payments, but it also helps the organization achieve broader improvements in cost savings, business processes and capital management.
Another factor identified by one-quarter of the companies as a contributor to financial errors is the lack of communications between the A/P and Procurement departments. If these departments can integrate processes and systems, they can have full visibility and efficiently share knowledge and resources online. Increased collaboration and integration not only brings greater communication, but it also enables companies to reduce errors and more effectively manage finances.
Finance departments need to have dynamic and flexible processes to effectively manage the constant flow of cash through an organization. Against this backdrop, A/P automation should be regarded as an ongoing evolutionary investment that will help companies increase accuracy, save time and money, and give them control over finances, especially now when, more than ever, cash is king.