Businesses have a lot riding on their accounts payable processes. Accounts payable inefficiencies negatively impact:
- Cash management
- Forecasting and reporting
- Spend management
- Compliance and security
- Supplier relationships
With accounts payable having a significant impact on enterprise objectives, it is no surprise that more businesses are thinking more strategically about their accounts payable processes.
Automating invoice approval and exceptions workflows is a good starting point. But what makes manual and semi-automated invoice workflows so inefficient?
- They cost too much: If I told you that manual AP workflows of over 1,000 invoices a month could cost you between $187,000 and $465,000 a year, would you continue to use it? With it becoming easier and easier to tie back ROI to different business entities, we know how important it is to cut spending wherever possible, which is why we recommend cutting manual or semi-automated workflows.
- They create too many errors: When errors occur, exceptions arise. Whether it’s a wrong price, wrong quantity, or a missing PO number, it takes time to fix these issues. Even more time is wasted if you have to fix these exceptions manually. There are numerous handoffs and back and forth communication that take time away from being productive.
- They take up too much time: Along with taking up time fixing errors, manual and semi-automated workflows just take up too much time in general. According to Ardent Partners, it can take 17.1 days for an invoice to go through the entire approval cycle.
Don’t suffer through using inefficient AP Workflows. Fully automated AP workflows eliminate these issues to improve profits and productivity.