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Accounts payable automation benefits
As the world becomes increasingly digital, the need for organizations to adopt accounts payable automation solutions is becoming more urgent. Companies that fail to adapt to this new reality risk missing out on four key benefits that such solutions offer.
Automated accounts payable processes provide several benefits. These include improved efficiency in invoice processing, accurate and timely payments, reduced risk of errors and fraud, and enhanced compliance. In this blog, we point out the main advantages of using modern AP automation software.
7 key benefits of Accounts Payable automation solutions
Reduced invoice processing costs
The cost of processing an invoice is a critical metric that leaders frequently disregarded. The reason why is that there are many hidden expenses associated with it. The cost of processing an invoice also depends on factors like organization size, automation level, and invoice complexity.
When an organization lacks automation in its accounts payable processes, the cost of processing a single invoice can reach 25 EUR. However, by implementing accounts payable invoice automation solutions, you can reduce this cost by an impressive 80%.
Decrease invoice processing time
AP automation offers the advantage of reducing the time needed for invoice processing in the accounts payable department. To achieve this, businesses should identify tasks that cause significant delays in the process. Addressing these tasks and optimizing them will contribute to improving several key performance indicators (KPIs).
Manual data entry is a well-known example that slows down the AP process. But there are more activities contributing to a lengthy invoice process. Some examples are:
- Extracting and (re)matching key data
- Requesting the goods receipt note to responsible departments
- Identifying and pursuing the right approvers on the different levels of approval
- Adhering to internal business rules
- Manual compliance validation checks
- Following auditor guidelines
- Manually communicating with vendors
Minimize manual time-consuming tasks
AP Automation software allows the reduction and removal of manual and repetitive tasks from AP clerks. This outcome is not only essential for reducing errors and mistakes, but it also allows businesses to retain top talent.
Automated invoice processing performs various tasks for your AP clecks. These tasks include receiving, matching, coding, approving, and exporting invoices into the ERP. From that moment, the process requires little or no manual involvement. By freeing up AP clerks’ time, they focus on more strategic and value-added tasks.
With the addition of Artificial Intelligence (AI) and Machine Learning (ML), the entire AP process can become almost “autonomous”. This allows businesses to achieve even higher levels of efficiency and accuracy.
We can conclude that thanks to high automation levels AP clerks have more time available. They can spend their spare time on more strategic and value-added tasks which makes their job more challenging and attractive.
Mitigate fraud and compliance risk
Has your company experienced any type of financial fraud in the past year? Unfortunately, that wouldn’t be uncommon. We see that nowadays fraud is a reality and large enterprises are a target of it. From the submission of false invoices to dummy PO imported by internal staff, the list of malicious actions isn’t short.
AP Automation solutions can help companies to eliminate fraud by making sure invoices are compliant and providing higher control mechanisms. Some features are audit trail generation or advanced approval workflow. Of course, there are more features that can help you deal with fraud.
For example, you can add as many compliance checks as defined in your processes when using Cevinio. To name a few, VAT numbers, IBAN and bank accounts, or billing address checks. When you use such features you make sure you only process correct invoices in the ERP.
Improved Vendor Relationships
Accounts payable automation software can enhance vendor relationships by streamlining the payment process. Automated systems can ensure timely payments and accurate processing, reducing delays and errors that can strain vendor relationships.
Automated invoice processing can help to establish a smooth and efficient payment process. As a result, businesses can strengthen their partnerships with vendors, leading to better terms, discounts, and improved overall collaboration.
Enhanced Data Analysis and Reporting
Accounts payable automation software generates comprehensive data and provides valuable insights into the financial operations of a company. With automated systems, businesses can easily track and analyze their accounts payable data, identify trends, and generate detailed reports. This enables better decision-making, improved financial planning, and more accurate forecasting.
By leveraging the data collected through AP automation software, businesses can gain a deeper understanding of their cash flow, vendor performance, and overall process health.
Streamlined Audit and Compliance
Manual accounts payable processes can be prone to errors and non-compliance with internal policies, external regulations, and auditing standards. Accounts payable automation software helps mitigate these risks by enforcing standardized workflows, approval processes, and compliance checks. Automated systems can validate invoices against predefined rules and regulations, flagging any discrepancies or anomalies for further review.
This level of control and transparency ensures compliance operations. Consequently, you also reduce the risk of fraudulent activities and simplify the audit process by providing a comprehensive audit trail.
How Cevinio can help you benefit from Accounts Payable automation
At Cevinio we are a leading company in the accounts payable transformation market. With our invoice processing software, we can optimize complex AP processes on a global scale. The following strengths of Cevinio will help you:
Simplify your invoice processing flow. Our software has several notable strengths, including its ability to read invoices like a human without the need for templates. With high accuracy, we split invoice batches without barcodes or other mechanisms, further reducing manual intervention.
Handle global operations with ease. We can serve multiple shared service centers, manage numerous suppliers across entities, and handle invoices in various languages. Additionally, we provide automation for complex invoice scenarios. Such scenarios require involving multiple departments, running compliance checks, and exporting the invoice to the relevant ERP system.
Monitoring and control tools. The Cevinio Analytics Suite and advanced workflow ensure a precise invoice processing flow. Our workflow is configurable. It supports best practices for informative and approval processes, generates audit trails, flags deviations, and helps prevent fraud and duplicate payments.
Artificial intelligence, machine learning, and exclusive algorithms. Our platform offers a smart approach to automation. Our software provides automatic PO matching and non-PO coding (general ledger, cost center, project) of invoices, ensuring accurate bookings.
The use of accounts payable automation software can bring significant benefits to organizations. Some of the benefits of AP automation include: reduced costs, decreased processing time, minimized manual tasks, mitigated fraud and compliance risks, improved vendor relationships, and enhanced data analysis.
Cevinio, a leading company in the P2P automation space, offers advanced software that simplifies invoice processing. We assist companies seeking streamlined global operations, monitoring and control tools, and leveraging AI andML.
Are you ready to lead the Accounts Payable automation in your organization? Let’s make a direct and positive impact on the bottom line together. Let’s get in touch to discuss how Cevinio can add value to your business.