If you think the C-suite isn’t receptive to accounts payable automation, think again. The AP department’s standing has never been higher in the eyes of the C-suite.
58 percent of controllers surveyed by IOFM rate their AP department as having “high value” and being a “critical component of their business.” Another 22 percent of controllers surveyed by IOFM said that the AP department is “integral to some business units.”
Importantly, 63.5 percent of controllers surveyed by IOFM say that AP is a priority for improvement. Controllers are willing to back up their plans for AP with additional capital: 60 percent of controllers anticipate that AP will receive additional investment for process improvement projects– the only finance function that the majority of controllers expect will receive more investment compared to previous years. Of note, more than one-quarter of controllers (27.6 percent) say that their AP department plans to deploy electronic invoicing capabilities, according to IOFM.
Why do controllers believe in AP automation?
For starters, automated AP solutions such as NexusPayables provide controllers with complete access to active and historic invoicing data to drive more informed financial decisions. Second, automation significantly decreases AP costs through reduced manual data entry, less paper handling and routing of documents, no paper filing, and faster resolution of supplier inquiries. It costs a best-in-class company (which typically has a higher level of AP automation) an average of $2.20 to process an invoice, while average companies (with low or moderate levels of automation) pay $19.10 to process an invoice, according to Ardent Partners. Automation mitigates many of the risks associated with paper-based invoices, while improving compliance with external and internal requirements. Automation reduces the incidence of lost invoices by 63 percent, finds PayStream Advisors.
These benefits help controllers fulfill their functional responsibilities for control, costs and cash management — strategic dividends go far beyond the AP department.
Contact us today to learn how AP automation solutions from Nexus can help increase your profit margins.