A growing number of accounts payable departments are pursuing automation, and for those that are on the fence, sooner is better than later to begin implementing technology enhancements.
One of the leading motivations behind automation is the opportunity to save money. The Managing Accounts Payable publication produced by the Institute of Management and Administration found that some AP departments have been able to reduce costs by up to 75 percent by automating their processes.
One way to cut costs quickly is to install imaging equipment to get rid of paper invoices. The images can then be sent online for approval and payment. Furthermore, the need for a paper invoice can be eliminated entirely with electronic invoicing.
Using electronic bills also increases efficiency because the bills can be automatically routed to approvers. This can greatly boost the number of invoices each staff member can handle a month.
Automation can also reduce errors such as duplicate payments, which are more likely to occur when departments have to redo work and field a high volume of calls from vendors complaining about mistakes, notes the source.