During the COVID-19 pandemic, the normal course of doing business has been disrupted. Many offices have been closed, and accounts payable employees have been unable to do their work at home. With paper invoices and checks being mailed to the office, companies are at a loss when it comes to handling these daily tasks.
Using AP Automation Software can help companies cope with the disruption associated with work disruptions. With paperless AP solutions, employees will have an easier time handling their responsibilities while they work at home.
Having a paperless software solution that employees can log into from their home offices means that your business will be able to meet deadlines and stay financially above-board.
When the pandemic broke out in winter 2020, companies did not have very much time to transition their offices to a remote working model. Many companies that were not already using AP automation software discovered quickly that they would need it if they wanted their businesses to survive.
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What is AP Automation?
Even though today’s business world is gradually becoming digital, there are still many companies that rely on traditional printed invoices. This can represent wasted time, money, and postage. An automated AP solution is paperless, meaning that the entire transaction takes place within the software. Automated AP solutions create invoices, send them to customers, receive them from vendors, accept payment, and keep the data in an easily searchable format.
Here are the ways in which paperless AP solutions can be an advantage no matter what business conditions are in force.
Saving Time and Money
Automated AP processing saves a great deal of time. The days of taking printed invoices from the mail, presenting them to the correct department for approval, entering the data by hand, and mailing a check can be brought to an end. This may mean that your company can get by with a smaller staff in accounts payable. This could free employees to work on more business-focused tasks.
Automated processing also saves money because it is inherently more accurate than paper-based processing. Skipping the step of manual data entry means that fewer errors will occur in the system.
The cost of printing, preparing, and processing a non-automated invoice can be as high as $10. This contrasts with the average cost of an automated invoice at $2.
Saving Paper and Postage
While it may not seem like invoicing uses a great deal of paper, AP staff know otherwise. The volume of mail coming and going represents wasted money and resources. When these systems are fully electronic, the company will be spending less money on paper, envelopes, and postage.
Better Price Matching
When automated systems are used, price matching becomes easier. Employees will no longer have to scour their databases for the correct information.
When paperless solutions are put into place, it will be easier to compare records with the customer or vendor. Duplicates will be less likely, meaning that the company will not have to negotiate with the client who is expecting the company to pay twice.
Supports Timely Payments
When using automated AP systems, companies have an easier time receiving early-payment discounts. They can also eliminate the problem of late payments that could occur due to mail delays.
This is the Time to Automate
Many companies have become mired in paperwork and are missing deadlines, especially if they are tied down in paper processing systems. The logistics of their situation are filled with problems. Understanding when it is time to automate can help companies get through this difficult period.
In today’s challenging economic conditions, companies need to save money wherever they can. Though it may seem like an expensive purchase, automated AP solutions can save a company a great deal of money in the short- and long-term.
Unfortunately, many of the difficulties faced by today’s businesses are likely to continue for the foreseeable future. Companies will need to save money and deal with a smaller workforce since layoffs are bound to continue. Having a working AP automation system will help to take some of your company’s core tasks and make them easier to perform.
Understanding how your business could be impacted by an AP automation service could save you money, time, and trouble. Your contracted workforce will be able to process as many invoices while working at home as they were able to before the switch, and in many cases, these departments will become more efficient.
Having a solid automated invoice processing system could be a huge advantage for any business. Companies like Mosaic are able to work with businesses of any size and create an automated AP system that works in their situation.