Sticking to the old ways of Accounts Payable “AP” processing continues to cost both a great deal of time and money. In fact, recent reports show that transferring invoices around a cycle can last up to 20 business days! Likewise, the problem Accounts Receivable “AR” department’s face is longer collection periods for money owed. In today’s environment most people agree that saving time and money are crucial factors that need to be improved in order to operate efficiently. Employees in both AP and AR departments state that maximizing performance by using cost effective solutions is their main goal.
One of the reoccurring issues managers are asked to fix in today’s environment is saving money and streamlining business processes. Every company wants to move faster and be more productive while saving on overhead costs. Organizations that have implemented automated AP / AR solutions are finding it leads to faster invoice processing times, easier to use approval systems and rapid cost savings. Business Managers can actually track their savings down to the invoice. In a recent study, users reported an average savings per invoice processed of 50%! Now consider a company who averages 5,000 invoices per month at a cost of $10 per invoice with just a 33% savings…. This would amount to a savings of $200,000 in over the course of just one year. Even with these numbers being accurate there are still many doubters and companies who are hesitating to automate their AP/AR systems.
It’s very crucial for companies and IT departments to evaluate the importance of implementing AP/AR automation solutions within their businesses. Organizations need to understand the cost and time associated with their current processing environment and the amount of invoices they process on a monthly or yearly basis. In addition, they should understand the complexity of their current solution compared to how easy it would be operating a system using today’s technology. Only in implementing a solution will you truly understand the huge savings and what it feels like to Accelerate your Business processes. For help on choosing the correct company to provide business automation solutions check out one of All Stars previous blog titled “Things to Consider when choosing an ECM Partner”.