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How to Reduce Costs with Automatic AP Software

  • How to Reduce Costs with Automatic AP Software

    How to Reduce Costs with Automatic AP Software

    The Accounts Payable (AP) department is often one of the slowest to switch over to automation software or to update older software solutions. Often, there’s a perception that updating the old way of doing things will cost too much money, eat up too much time, or change the way your company does things. Besides, if the old way isn’t broken yet why fix it?

    While myths like this are fairly common, delays in implementing more efficient AP processing software could be costing your company money. Even if things seem to be working okay now, modern Business Process Automation (BPA) can improve accounts payable in ways you might not even have thought of.

    One of the most important improvements that you can make with AP automation software is reducing overall costs. BPA software has a direct impact on costs, typically lowering the processing price per invoice significantly. It also provides other benefits to your company, many of which help you save money.

    Cut Costs Per Invoice

    While there is an initial cost to implementing a new Accounts Payable processing software, the long-term savings can be significant. For example, a 2015 survey by APQC showed “bottom performers” spend an average of $12.44 per invoice. Top performers spend an average of $4.98, and they’re the ones with more automation.

    cut cost save money invoice processing long termHere at NextProcess, we’ve found that organizations using fully automated accounts payable processing save an average of $14.93 per invoice compared to organizations that manually process invoices. Processing costs drop dramatically when you speed up invoice processing time and cut the amount of time that people need to spend on processing invoices.

    To learn more, check out our article “How Much Money Will Accounts Payable Automation Actually Save My Company In The Future?”

    Save Money Long-Term

    The savings related to AP automation take many forms. For example, you can process more payments as you grow your business without increasing staffing levels. Real-time tracking also avoids duplicate payments that could easily slip under the radar in a paper-based system and cut into your bottom line. Plus, the software automatically tracks deadlines to make sure you avoid late fees.

    NextProcess AP Automation Software will immediately reduce costs across the board. We promise faster processing and fewer headaches. Invoices move through the system quickly and efficiently, and approval reminders are sent automatically. Quicker processing and increased accuracy mean you might even be able to negotiate early payment discounts.

    Automate and Streamline Data Entry

    One of the big ways that automation helps reduce processing costs is by cutting down on the time that AP employees spend working on routine tasks like data entry. Automation isn’t replacing AP employees—it’s just automating many of the time-consuming tasks so your people can focus on other things.

    Our high-volume mail center quickly gets your invoices digitized and entered into your system. We don’t lose paper, and we can process e-mail and EDI submissions as well. No more filing or scanning paper invoices, no more manually matching purchase orders to invoices, and no more delays from lost files. Our proprietary data capture technology ensures over 99% accuracy on every invoice. Straight-forward invoices are automatically GL-coded, routed for electronic approval, and matched with the corresponding purchase order in your system. Your employees only have to review and handle exceptions that don’t pass established system rules.

    Gain Better Control

    Automatic AP software provides increased visibility and control over your AP process. Our AP software sets up a centralized document repository that puts every single invoice at the accounting employees’ fingertips. Whenever you need to look at AP history, it’s right there in a format that’s easy to access and search.

    automate streamline data entry better control AP functionsAll the information about current and past AP transactions is stored in the database, giving you the control and oversight necessary to quickly correct any errors. This also simplified audits. Plus, it gives you easy access to the accurate data needed for forecasting, budgeting, and strategic planning.

    Improve Efficiency

    NextProcess is committed to making your AP system as efficient as possible and helping you configure it for your company’s exact needs. The ability to customize your software provides a significant advantage over many older methods for managing accounts payable. During implementation (and for the whole time you have our software), we’ll help you configure the software to match your exact needs. For example, you can automatically enforce company policies, customize approval settings, and much more.

    You can also give your vendors access to their own invoices on your AP platform, all while maintaining control over exactly what they can access. This lets your vendors check payment status and submit any missing invoices without bothering your AP department. They’ll also be able to log in and update their data as needed. Over time, giving vendors control over some of the customer service aspects of the accounts payable department helps cut AP costs.

    Next Steps

    If you’re interested in seeing first-hand how NextProcess’ accounts payable automation can help your company, contact us to set up a free demo. We’ll answer your questions, walk through how the software works, and discuss how we can help your company save money.