The A/P Challenge
If you have experience with Accounts Payable, you’re sure to have encountered most, if not all, of the below challenges. These all-too-common issues create a work environment that leads to high frustration levels and inefficiency.
- High cost of data entry - It’s a lengthy and tedious process to manually move and process large amounts of paper invoices, and it takes numerous staff hours to get the invoice information into your ERP/accounting system. But, this is just the tip of the iceberg when it comes to A/P challenges that increase the cost of data entry.
- Data accuracy issues - We’ve all heard the adage, “To err is human.” While it’s comforting to know that we all make mistakes, they can be costly when made during any step of the A/P process. Correcting data later in the process can cost your business three to five times more than getting it right at the beginning of the process.
- Late payment fees - Checks don’t always get out on time due to delayed approvals, inaccurate information, and a number of other reasons. Unfortunately, when that happens, it can come with a penalty.
- Disjointed invoice approval process - When you have a more complex approval process with multiple locations, multiple approvers, or even complex approval rules, obtaining approval for each invoice can be time-consuming and invoices can easily get lost in the approval process. A decentralized system leads to errors and delays.
- Losing focus on the real job- As we mentioned before, the data entry process is lengthy and tedious, distracting A/P staff from their real job – making sure that payments are accurate and timely, disputing invalid charges, managing cash flow, etc. Adding headcount isn’t always a viable solution, so core A/P functions may suffer.
- Difficult audits and no real-time reporting - Paper documents are easily misplaced, lost or damaged, thus creating problems during audits. Processing paper invoices often creates significant delays in reporting visibility to current payable balances and to where they are in the approval process.
Process optimization, combined with strategic use of automation technology, can provide a solution to your A/P woes. Coupling automation in the A/P process with scalable technology solutions allows a centralized system to easily and accurately complete these A/P processes, eliminate costs, and free up personnel to focus on other key areas of the business. There’s no more need to struggle with common obstacles that are preventing your business from becoming efficient and scalable.