Businesses looking for sustainable growth require streamlined operations. Automating accounts payable (AP) processes enhances efficiency and frees up valuable resources to focus on strategic initiatives. But how do you get started? Working with a company that is experienced in designing AP automation processes and tailored solutions for all clients is crucial. At DataServ, we understand the intricacies of AP automation and our solutions fit your needs, removing the burden of making your internal teams become the experts in automating accounts payable.
In this guide, we’ll explore the need to examine current accounts payable processes and the specific pain points that AP automation can help resolve to revolutionize your financial operations.
Establish the Steps of Your Current AP Process
Before diving straight into accounts payable automation, you must assess your current AP processes. Understanding your workflow lays the foundation for effective automation, bringing any areas to light that would benefit from improvement. Current workflows that are often held up due to bottlenecks or avoidable obstacles, like manual approvals of paper invoices, should be most heavily scrutinized.
Throughout your internal evaluation, ask yourself several questions about the current accounts payable process:
- How many invoices are typically processed each month? How is the process affected when more invoices require attention?
- What is the current invoice approval process?
- How do you currently receive supplier invoices (mail, email, vendor portal, etc.)?
- What are the biggest bottlenecks in your accounts payable process?
- How often are invoice processing or vendor payment mistakes made and identified?
- What is the average cost of processing one invoice in your organization?
- How long does it typically take your team to fully process and approve one invoice?
Answering these questions will help establish not only your current processes but also provide specific, measurable goals your organization can work to achieve by implementing AP automation.
In addition to helping improve processes, accounts payable automation can help your organization save money. As you evaluate the way your accounts payable department is currently working, take note of how much the processes are costing. Poor processes may result in higher labor costs and late vendor payments. AP automation can lower these costs as well as help your company take advantage of early payment discounts.
If you’re already curious how much money could be saved by improving AP automation within your teams, our ROI estimator tool can give you a fair idea.
Identify the Pain Points
Every business encounters pain points in its AP processes. From lost time to data inaccuracies, these challenges can hinder productivity and profitability. The following are some of the most common accounts payable pain points and how AP automation software and solutions help remedy them.
Losing Time Capturing and Routing Invoices by Hand
One of the most time-consuming tasks in accounts payable is manually processing invoices. Performing all tasks manually takes a lot of time, from sorting through inboxes, printing out or scanning invoices, tracking routed invoices in separate spreadsheets to manually keying in information, and more. If your business experiences growth, these processes become even more time-consuming and prone to errors. Processing invoices by hand may also result in slower, delayed, or even missed payments to vendors, which could subject your business to late fees, more stringent supplier terms, delayed shipments, or just an overall negative vendor relationship.
One of the most important automation tasks is figuring out how to digitize 100 percent of your incoming invoices with the least amount of change possible. This may require you to find a solution that’s even better than traditional optical character recognition (OCR). With DataServ’s Invoice Processing Machine, you can effortlessly streamline invoice intake and processing – simply redirect your existing AP email inbox(es). By digitizing invoices and standardizing data fields, you eliminate errors and expedite the approval process. Automation also better utilizes your accounts payable team—all invoices will be routed through one place, the data will be checked for accuracy, and an effective QA process will be established to keep your team focused on strategic, meaningful tasks.
Should we say this again? Chasing Invoice Approvals
Invoice approvals are necessary but shouldn’t be a bottleneck in your AP process. Often, invoices get to where they need to go but are forgotten in an inbox or lost under stacks of paper on a desk. Suppliers may mail, email, or fax invoices and address them to various individuals. AP often sorts and routes emailed invoices, tracks them manually, makes decisions about who gets what, and maybe even codes for the buyers. These situations created by manually routing/chasing invoice approvals cause friction as managers, purchasers, and suppliers begin pointing fingers at who they think dropped the ball.
Without formal approval, invoices aren’t paid, and team members are tasked with performing substantial investigations to find where the invoice ended up. Late payments affect the balance sheet, expenses are coded to the wrong income statement, and more, leaving management with an inaccurate summary of financial data.
With DataServ’s Automated Workflow solution, you can distribute approvals seamlessly across your team based on your unique Delegation of Authority. Our invoice workflow automation ensures efficient routing and tracking, reducing delays with timed escalations and delivering complete visibility.
Manual Entry is Taking Up Valuable Employee Time
Manual data entry is not just time-consuming; it’s a drain on your resources and a risk to your financial records’ accuracy. Every keystroke is a potential error waiting to happen, leading to discrepancies, delays, and frustration among your accounts payable team. The repetitive nature of manual entry can also lead to employee burnout and decreased morale, causing higher turnover. Your skilled workforce shouldn’t be bogged down with mundane tasks when their expertise could be better utilized elsewhere.
Many challenges come with data entry, from deciphering illegible handwriting to transcribing complex figures, that leave ample room for error. Manually entering data also offers little flexibility in handling various data formats and sources, adding to an already complex process. If you expect your business to grow while still using manual processes, you will only exacerbate the strain on your resources and increase the risk of errors as the volume of data increases. Overall, it’s difficult to keep up with evolving business needs and industry standards when everything is performed manually.
At DataServ, we understand the frustrations and inefficiencies associated with manual data entry. That’s why we offer comprehensive solutions to automate this cumbersome process and empower your team to focus on value-added activities. We streamline data capture, classification, and validation by leveraging advanced technologies and intelligent automation. Our tailored approach identifies patterns in your data and establishes automated workflows, ensuring accuracy and efficiency at every stage. With DataServ by your side, you can transform manual entry from a liability into a strategic asset, driving productivity and profitability across your organization.
Change Management
Change management is an often under-emphasized yet crucial component that can make or break your AP automation project. Attempting to implement AP automation without first having proper change management can lead to significant costs such as:
- Reduced Productivity: Employees may struggle with new processes, leading to mistakes and delays.
- Increased Resistance: Without buy-in from all stakeholders, there may be pushback, slowing down the project’s process.
- Higher Turnover: Resistance to change can increase employee dissatisfaction, potentially leading to higher turnover rates.
Underestimating the importance of change management puts your company at risk of project failure, incomplete adoption for inefficient automation, and loss of initial investment into the project if it doesn’t fulfill your goals.
At DataServ, we understand the significance of guiding your organization through the automation process. This is why we incorporate change management assistance through our Rapid Adoption Kit, which includes:
- Early Demos: Introducing AP automation to impacted users early in the process helps them understand and feel comfortable with the new system.
- Communication Schedules and Messaging Templates: Regular, clear communication keeps everyone informed and engaged throughout the transition.
- Ongoing Training: Free, ongoing training ensures that all users are confident and proficient with the new system.
- Comprehensive Support: Our support team is always available to assist with any issues, ensuring that your AP automation project stays on track.
By prioritizing change management, we help you navigate the complexities of automation and achieve a successful, smooth transition.
Regulatory Compliance is Adding Uncertainty and Time
Navigating regulatory compliance is complex and time-consuming for businesses trying to keep up with constantly evolving tax regulations, industry standards, and more. Adhering to the necessary regulations requires meticulous attention to detail and a deep understanding of legal requirements, adding layers of complexity to already intricate financial processes.
There are many challenges with regulatory compliance:
- Keeping up with regulatory changes and updates requires continuous monitoring and adaptation, putting additional strain on internal resources and adding uncertainty to an already complex process
- International transactions introduce additional, complex layers with varying regulations across jurisdictions
- Non-compliant operation subjects your business to severe consequences, from financial penalties to reputational damage
At DataServ, we understand the complexities and risks associated with regulatory compliance. That’s why we offer tailored solutions to help businesses confidently navigate this challenging terrain. Our International Invoice Processing Solution ensures seamless compliance across borders, providing clarity and peace of mind in an uncertain regulatory environment.
The International Invoice Processing Solution reduces your financial risk, manages current exchange rates, offers you control and transparency in all transactions, and reduces your processing and labor costs. By including our E-Invoicing Compliance option, the DataServ technology interfaces with any e-invoicing network to receive and process invoice data, meaning you don’t need individual solutions for each country’s different e-invoicing mandates.
By establishing rigorous controls and workflows, we streamline compliance requirements, minimizing risks and mitigating potential liabilities. We help you navigate regulatory complexities to empower your business to thrive in a global economy.
Find a Partner That Will Help You Figure Out How to Automate Your Accounts Payable
Automating your accounts payable processes is not just about streamlining operations; it’s about transforming your entire financial ecosystem. By identifying pain points, such as manual entry, and regulatory compliance challenges, your business can unlock opportunities for efficiency and growth.
DataServ delivers tailored solutions to address these pain points head-on, leveraging advanced technologies and integration expertise to drive tangible results. Our holistic approach to AP automation ensures that every aspect of your process is optimized for maximum efficiency and accuracy. From invoice processing to compliance management, our solutions are designed to adapt to your unique business needs, empowering you to stay ahead of the curve in a rapidly evolving market.
Contact us today or check out a demo to discover how we can revolutionize your financial operations and propel your business toward success.
