Laurent Charpentier, chief innovation officer at YoozNorthAmerica, discusses three ways accounts payable automation can transform processes – and profits – for a company.
- Enhanced decision making: AP automation improves real-time visibility of daily accounting operations, improving a company’s financial intelligence dramatically. Access to live accounting data allows companies to practice data-driven management in their daily operations, spotting trends that are only visible from studying aggregate data. Previously, only large companies with extensive IT operations (and budgets) could afford this type of accounting and analysis, but by outsourcing AP operations, even a small company can take advantage of this influx of information, allowing decision makers to chart a course for their business based on existing trends of past performance and statistical projections of future growth.
- Accelerated invoice processing: When a business increases in size, its accounts payable functions increased in volume – and complexity. Often this growth – especially if it comes suddenly – can hurt a company’s profits thanks to higher invoice processing costs and lower productivity. But, by outsourcing AP processing, a company can capture invoices and other documents, extract relevant data from multichannel sources and power an electronic workflow without taxing its own resources. Cycle times can be cut, accuracy can be improved and employees can focus on the company’s core competencies.
- Stronger relationships: Automated AP processing can also transform a company’s accounting into a live network of partners where information remains secure by flows freely. Accounts payable changes its focus from exchanging invoices and awaiting payments to building relationships and improving communication. Rather than contend with tense calls from suppliers, companies utilizing AP automation can focus on improving their connections to clients and negotiating more advantageous terms.
AP automation doesn’t take employees out of the accounts processing equation. Instead, by giving departments leading edge tools to focus on the purchasing process, it improves organization, increases efficiency and lets those employees focus on the core competencies of the business – and on improving relationships with its clients.