Making the Move to Modern AP
Modernizing the AP department with automation is widely regarded as a beneficial step, yet switching to automated AP often meets resistance within organizations. If you’re trying to convince your company to get on board with AP automation, there are a few key facts to consider. AP automation saves money and time, provides secure and accessible processing, and is very easy to use and implement.
In 2010, the Institute of Management & Administration (IOMA) released a study showing that an average company employing little to no automation spent almost 250% more per invoice compared to an average company with a high level of automation. The companies that automated their AP departments had a median cost of $6.31 per invoice, while companies with low levels of automation had a median cost of $15.70 per invoice.
These figures make sense when you think of everything involved in processing an invoice by hand. Processing a paper invoice involves opening the mail, matching the invoice to a purchase order, routing, coding, approving, and entering the invoice into your accounting system, making a payment, and then finally filing the invoice. Supplies, postage costs, and check fees also play a role, but the greatest savings when you switch to automation is in labor costs.
There’s a persistent belief that hosting your business processes on “the Cloud” makes them less secure. Cyber security is a very real issue right now, but Cloud-based systems can actually be more secure than storing everything on company computers. Depending on your level of security, an on-premises accounting system often has a higher chance of being compromised than Cloud systems. Online accounting systems typically have multiple levels of security and require regular password updates.
Another advantage of Cloud storage is that it automatically backs up your important data. Even if you manually backup data on a regular basis, paper copies could be destroyed and external hard drives could be damaged or corrupted. NextProcess’ Accounts Payable software provides a high level of security and backup. The software installs on your computer for ease of use and includes permanent online data and image storage.
Demonstrate Ease of Use
Modernizing the AP department isn’t going to be a huge headache for your company. Automatic AP integrates seamlessly with existing processes and requires limited involvement from IT. With NextProcess’ system, you’ll be up and running with automated AP in no time and you’ll notice reduced costs immediately. We’ll even schedule a demonstration so you can see how everything works before you decide to purchase our software.
Not only is AP automation easy to implement, but it’s also easy to use. Automation gives increased control and oversight while streamlining AP processes. You can view and access every part of the process and store permanent records that are easy to search and a download. This simplifies audits, as well as day-to-day AP tasks.