Don’t Overlook The Crucial Role AP Plays In Saving Money
Even though the accounts payable (AP) department governs money leaving your company, it’s one of the best places to save money. A smoothly-functioning AP department doesn’t lose money to late fees, has a low processing cost-per-invoice, streamlines your payment information, and collects usable data. It also helps your company maintain a good reputation with vendors. When you’re on good terms with vendors, they’re more likely to negotiate discounts and better payment terms.
Stop Losing Money in Accounts Payable
Simply put, money leaves your company through the Accounts Payable department as payments for goods and services. That’s normal, but you might have more money leaving the company through AP than you think.
An outdated, poorly functioning Accounts Payable department is a sinkhole for cash. Your company could be losing money to over-payment, late-payment fees, and duplicate payments. An AP system, preferably using automation, that can track deadlines and cross-reference payments will help stop that.
Save Money Per Invoice
On a paper system, invoice processing takes longer which means a higher processing cost-per-invoice. Moving to an automated Accounts Payable system can cut costs by 250% per invoice or more.
A 2010 study by the Institute of Management & Administration (IOMA) reported companies that automated their Accounts Payable departments had a median cost of $6.31 per invoice compared to $15.70 per invoice for companies with little or no automation. That’s a huge discount if you take advantage of it. Another way to look at it is this – if your competitors are using automation, and you aren’t, you’re at a significant cost disadvantage.
Another way to look at it is this – if your competitors are using automation, and you aren’t, you’re at a significant cost disadvantage.
Streamline Payment Information
Automation, especially from a Software as a Service (“SaaS”) provider like NextProcess, centralizes your payment information. You couldn’t lose track of Accounts Payable information unless you tried (and maybe not even then). Our AP Automation Software automatically matches invoices to purchase orders, processes invoices, and keeps track of payment deadlines.
NextProcess also offers the option of automating your payment disbursement. We’ll print checks for your and mail them on-time to your vendors or pay them via ACH or SVC. The software lets you customize check appearance, maintain security, and see your payment process in real time.
Simplify Data Processing
Our software provides complete oversight into your payment process. This makes it easy to see where the money’s going and organize short-term and long-term credit. The accurate and easily accessible data simplifies audits as well as budgeting.
Accounts payable plays a key role in maintaining a successful business. Automating accounting processes and centralizing information about incoming and outgoing payments can save you money and ease the burden on your financial department. Contact NextProcess today to schedule a demo and see first-hand how we can help save your company money.