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Improving efficiency is an important goal for any business, as well as the key to staying both agile and competitive in an expanding market. Stakeholders need to consider which areas of their business could see an increase in efficiency without any major structural changes.

One area that is often ripe for an improvement in efficiency is the management of accounts payable (AP). This is a central pillar of any business, so it is essential to ensure that it is running as smoothly and effectively as possible.

This is where AP automation comes into play, offering businesses a modern, digital solution to many of the issues faced by outdated finance team processes that can improve their overall outlook.

Understanding the impact of AP automation

An increasing number of processes within businesses are being digitalized, with technology helping to support staff to increase their productivity and efficiency. AP automation platforms are digital tools which streamline large swathes of the accounts payable process, automating many of the repetitive tasks involved with invoice processing, approvals, and payments.

This allows companies to move away from outdated processes involving paper-based invoices and manual workflows, creating a far more efficient pipeline. Not only that, the adoption of AP automation allows for the centralization of data, with in-built dashboards that make a far simpler job of tracking individual invoices and overseeing the accounts payable process.

Now, we will take a look at some of the most tangible benefits of implementing an AP automation solution and how they can improve your business outlook:

• Better productivity and efficiency

By far, the most immediate benefit of accounts payable automation is a sizeable improvement in efficiency. Cutting out the majority of the manual processes associated with invoices and payments allows for a far more agile approach for your entire business.

Not only are the tasks involved in processing invoices typically labor-intensive, they also take a significant amount of time. One invoice can take days or even weeks to get through the system when manual processes are in place, raising the potential for costly delays.

AP automation ensures that all invoices are captured electronically and automatically uploaded, immediately beginning their processing. This makes for far more efficient turnarounds on invoices, reducing waiting times to just hours in the best cases.

With staff freed up from the repetitive tasks of manually processing invoices, they can focus their time and attention elsewhere. This is both more fulfilling for them and better for the overall business, as more work is being done without the need for any additional hiring.

• Cost savings

As we all know, time is money. So, by reducing the time needed to process invoices through automation, businesses can naturally save money. This is in addition to the reduction of operational costs through removing the need for printing and the physical storage of invoices.

Further cost savings are also possible as AP automation makes it easier for businesses to take advantage of early payment discounts from suppliers. With lower processing times, payments are less likely to suffer from delays and any associated costs from late payments.

• Enhanced supplier and vendor relationships

Delivering payments quickly also offers the benefit of bolstering relationships with the businesses being paid. A streamlined and efficient accounts payable process will encourage the confidence of business partners and suppliers, giving them more reason to maintain the relationship.

In addition, AP automation platforms offer suppliers the chance to utilize a self-service portal, checking up on the status of their invoices without having to reach out. This saves teams time answering enquires and offers a level of transparency that translates into more positive business outcomes.

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With the use of AP automation businesses could see improved productivity, reduced operational costs and improved business-to-business (B2B) relationships. All these point towards better overall outcomes, as well as more agile operations.