Invoice automation has become a hot topic amongst finance circles. A significant shift is beginning to shake the traditional corporate invoice and payment management paradigm. Innovative organizations are seeing tremendous potential around invoice automation – not just cost containment and productivity enhancement, but also spend management and working capital improvements.
Owing to these factors, we are seeing a dramatic interest in accounts payable (AP) automation solutions, especially around electronic invoicing, imaging and automated workflow.
While numerous AP automation options have been available for many years, many organizations, especially small and medium-sized ones, are just now starting to dip their toes in the automation waters. What factors are driving this renewed interest in automating AP operations? Why does it make sense to automate now?
- Benefits of Automation Get Clear
- Organizations that were initially skeptical about AP technologies are learning from the experiences of their peers that have already automated and now see the tremendous potential of automating AP operations.
- Focus on the Donut, Not the Hole
- An increasing interest in transforming the accounts payable department from merely being a cost center to a profit center is driving organizations to seek out innovative means to achieve this objective.
- Spotlight on Processing Costs
- A competitive business environment is prompting organizations, especially in industries with lower margins and tighter cash flows, to focus on reducing processing costs and increasing efficiencies associated with invoices and employee expenses.
- Cash is King in a Tough Economy
- Streamlining the AP process has become extremely important in a tough economy where adequate cash flow and greater control over payables are critical in maintaining liquidity and sustaining business operations.
- Early Payment Discounts Deliver High APR
- Given the extremely low interest rates today, an increased interest in early payment discount capture is driving small and large organizations alike to investigate tools and technologies that enable them to compress their invoice receipt-to-approval cycles.
- Innovative Delivery Models Lead to Rapid ROI
- The evolution of on-demand and Software-as-a-Service (SaaS) delivery models has significantly lowered the upfront cost of implementing AP solutions and reduced the hassle of maintaining them.
- Cost-Effective Solutions are the Key
- Software-as-a-Service (SaaS) solutions that defer solutions costs over a longer period of time are appealing to companies that find it easier to get budgetary approval for operating expenses over capital expenditures.
- Common Process for Paper and Electronic Invoices
- The convergence of electronic invoicing and front-end invoice imaging presents organizations with a single, comprehensive solution that can manage both paper and electronic invoices through a common process.
- Integrating Expense and Invoice Management
- Availability of invoice and expense management capabilities from a common platform delivers a unified view into all non-payroll spend for organizations and allows them to leverage the same solution for both processes.
- Making Suppliers Partners in Automation
- Value added-services delivered by solution providers around supplier recruitment are enabling buyer organizations to bring suppliers onboard more quickly and overcome the hassle they face around lack of supplier adoption.
