Is your AP/AR process a well-oiled machine or a clunker?
I've seen the power of technology in impacting positive and productive change - not only for an organization, but for suppliers, partners and the entire ecosystem. The latest tools and technology in AP automation can not only eliminate the paper from AP processes, but can also help leadership ensure they're cultivating efficiency across the enterprise. While technology is a powerful and positive influence, it's only as strong as the processes that underpin it.
Best in class accounts payable (AP)automation software makes visibility a priority; creates savings opportunities through reduced paper expenses, early-payment discounts, and avoidance of late-payment fees; and even makes sure the right employees are assigned to the right P2P roles to maximize productivity.
My advice to organizations interested in investing in streamlining their financial management processes is tried and true. Start by taking a hard look at the numbers to get a handle on whether your organization's internal process is an enabler or a detractor of efficiency.
Invoice processing: a measure of financial health
How long does it take a single invoice to make its way through your organization's AP department? A company's profitability is often determined by how well vital departments are managed internally. The amount of time it takes to turn cash into more cash is often a tell-tale sign the level of efficiency of the AP and accounts receivable (AR) departments. Research by The Aberdeen Group indicates the top 20% of organizations process the average invoice in three days, while the bottom 20% process an invoice in just over 27 days.
A few questions to consider:
- Do invoices with the shortest turnaround times get paid first?
How much does your organization spend on postage, courier costs, and
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