Business owners that refuse to upgrade to an AP invoice automation system are those who don’t see the problems the company is facing due to the current invoicing system. Sometimes sticking to what has worked in the past isn’t good for the future of the company.
Accepting change might require getting through a learning curve, but before dismissing the automated AP processing, consider that the following AP invoicing problems can quickly be eliminated:
Problem 1: Employee Overtime
Manually processing invoices requires a lot of studious man hours. A company who cannot afford to hire more AP staff are at risk for a lot of costly errors and even the resignation of overworked employees. By automating the system, less pressure is on the shoulder of the AP department and they can be more productive with other tasks.
Problem 2: Waste Of Resources
Time, effort, and money is wasted greatly when invoices are manually processed. With an automated system, the cost of processing is lowered by 80% and they are processed 73% faster in comparison.
Problem 3: Invoice Tracking
Passing the invoice from one department to another results in a lot of lost and misplaced paperwork which adds more responsibilities for the AP department. This is easily avoided by switching to an AP invoice automation system where tracking invoices is as easy as clicking a few buttons.
Problem 4: Lack Of Storage
Several copies of invoices are created for the sake of tracking them. This means having a room dedicated to paperwork which will continue to grow as the business expands. Additional storage room will cost the company more money, but an automated system can store several digital copies easily.
Problem 5: Too Long To Process
From the encoding of data, filing of invoices, getting approval, and sending out payments, will result in the AP department falling behind. Late payments come with late fees and cause tension with vendors, all of which are avoided through invoice automation.
Problem 6: Inaccurate Data Reports
Overworked and overwhelmed AP staff will churn out inaccurate reports that will have drastic consequences, this will no longer be an issue once the system has been automated.
Problem 7: Fraud
This invoices going from one hand to another every payment cycle, fraud becomes a major problem. When the details of the vendor end up in the wrong hands, the invoices can easily be replicated and the company ends up paying fraudulent invoices that can no longer be recovered.
Problem 8: Following Up
Manual invoicing requires the AP staff to call and follow up vendors about payments. This can be annoying to busy vendors and even result in duplicate payments when records are not updated in real time. An automated system has all the necessary information and is updated regularly to keep everyone in the loop without bothering third party vendors and suppliers.
Invoice processing can be a headache when done manually, but by automating the system so many costly errors are avoided with very little effort on the part of the AP department.
Nexus is a leading provider of AP invoice automation solution that helps increase control, accountability, visibility, and overall efficiency. Contact us today for more info.