Businesses are operating in a highly competitive marketplace, and razor-thin margins are considered when determining their success. Further, the entire organization is constantly concerned about the cost of doing business. Therefore, the management is ever seeking ways to reduce costs while strengthening its Return on Investment (ROI) for each dollar spent.
Automation is one of the most effective and efficient ways to attaining smart, strategic spending. An example is https://www.getyooz.com, an accounts payable automation platform that provides intelligent cloud-based AP automation that streamlines the invoice process workflow to over 4,000 global customers.
The article will provide you in-depth information about AP & purchase to pay automation. It will tell you how leveraging information sharing between key departments, such as procurement and accounts, will help maximize your ROI.
Accounts payable (AP) automation entails optimizing the entire process of receiving and handling the supplier invoices. Automating the whole process makes it touchless, and minimal human effort is required.
AP automation offers your organization the following benefits;
- It helps you to capture 100% invoice data in an electronic format. Thus, you’re able to receive the information irrespective of how your suppliers send it.
- It eliminates redundant manual work by allowing repetitive tasks to be covered by digital services. The advanced coding and matching technologies streamline your AP processes.
- Faster invoice processing enables you to grab those early payment discounts. With the elimination of the manual process, you’re able to pay early, thus earning an advanced payment discount.
- Modern technology helps you to reduce exception handling.
It’s also known as procure-to-pay (P2P) and comprises the process that starts at the point of order and ends when payment is made. P2P involves requisitioning or ordering, purchasing, receiving, and payment of goods and services; thus, multiple processes and people are involved.
P2P process brings together procurement and AP. Thus, a manual process can be confusing, complex, labor-intensive, and time-consuming. On the other hand, P2P automation is efficient, increases transparency, reduces overall cost, and potential sources of errors.
The major benefit of P2P automation to your organization.
- Computerization links the procurement team to the finance department.
- It transforms a difficult process into a rich opportunity by reducing payment cycle times.
- It contributes to cost reduction, thus improving the ROI.
- It supports data-driven strategic planning that is value building at the enterprise level.
AP and purchase to pay automation are geared towards improving the entire procurement process. They add value by providing greater efficiency and reducing costs.
The workflow is streamlined through artificial intelligence and software-based centralization.
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