One of the prevailing themes in the business-to-business arena is the massive volume of unpaid debts shared between companies in the United States private sector, which some studies have found to be in the billions of dollars at any given time. In many ways, a lack of speedy distribution in the invoicing arena and reconciliation of payments can hemorrhage cashflow, forcing firms to rethink their enterprise resource planning procedures and worry about their own outstanding debts. 

However, new technology has helped to drive the efficiency of accounts payable and receivable throughout a wealth of industries, especially as more organizations begin to deploy e-invoicing and other automated solutions to streamline the accounting department from the ground up. The transition away from traditional, paper invoices and AP procedures can have profoundly positive impacts on any business, including those that transcend quicker payments and better cashflow.

For example, paperless companies have been found to not only enjoy leaner operations given the lack of investment in physical filings, they also have opportunities to boost their brand considering the increased attention placed on eco-friendliness. Taking this a step further, AP automation and similar deployments can reduce the frequency of error in the accounting department, leading to stronger responsiveness to compliance demands and a reduced risk of inefficiency. 

Firms that have embraced automation solutions are likely enjoying better operational fluidity across the board, as these tools have been found to boost productivity, enhance employee engagement and increase accuracy in reporting. In a word, the use of these technologies is increasingly imperative rather than voluntary, as competition continues to heat up amid the recovery from the Great Recession that has accelerated in recent years. 

Case in point
Manufacturing.net recently reported that industry giant Leeco Steel decided to transition away from traditional, paper-based accounting and enterprise resource planning procedures and toward more digitally driven options. This firm, like many others in manufacturing and beyond, took a leap into the modern era of paperless ERP, AP and AR, while also focusing on the deployment of a more streamlined document management system to centralize oversight. 

Before diving into the vast benefits this company enjoyed following the overhaul of its AP and AR departments, the source explained that the real adoption driver was the growth in demand and expansion of operations Leeco Steel faced toward the end of last year. This is one of the more common catalysts for companies to deploy new technologies, especially those that relate back to information and document governance, in that higher volumes will necessitate some form of advanced provisioning-based action. 

Manufacturers are an exceptional example of how automation can boost performance and why it should be employed deployed, as these entities are largely pursuant of lean operations, meaning a complete eradication of waste and optimization of efficiency. 

"A lot happened at the end of 2013," Leeco Steel Chief Financial Officer Mark Krzmarzick told Manufacturing.net. "We saw a lot of growth and we didn't want to just add more people, we needed to make everybody more efficient in preparation for our growth."

According to the news provider, AP automation allowed the firm to process 20 percent more invoices within the first year, rising from 3,000 to 3,600 following the deployment, while stronger accuracy in reporting and fewer hours spent on accounting are further stimulating performance improvements for the firm. Finally, Manufacturing.net pointed out that another key advantage enjoyed was the massive reduction in accrued payables, which dropped from $8 million worth before the implementation to $1 million within the first year of it functioning. 

Regardless of the scale that a company might be working on with respect to revenues, accounts payable and the like, automation solutions can come with these and other benefits. 

The brass tacks
At the end of the day, a company will be extremely reliant upon its ability to distribute, process and report in the accounting department, as a lack of order in finances tends to lead to chaos in operations. From improving the brand image and customer engagement to reducing the rate of error through the elimination of manual data entry, AP automation and relevant reporting analytics solutions represent a strategic differentiator in a variety of markets today. 

As is the case with any effective, successful and widely adopted technology, though, the timeframe in which companies can wait to deploy these solutions and still remain competitive is shrinking quickly. Considering the fact that the types of efficiency and accuracy gains spill over into regulatory compliance matters, reporting analytics procedures and general productivity in various departments, adopting the technology now can have a positive snowball effect throughout the organization before long. 

Remember, when looking for solutions, always provision those that most closely align with specific and unique corporate objectives, seeking out a provider that can also get the tools off the ground in a timely and accurate fashion.