The competitive case for implementing AP automation – London Business News | London Wallet

Finding new ways to enhance your business’s edge is an essential part of staying competitive in the modern business landscape. Whether it is by increasing and enhancing efficiency, reducing costs or streamlining processes, there are plenty of methods for strengthening your business’s internal performance.

One area where many businesses are still lacking and can look to for an easy improvement is their accounts payable (AP) management. Invoicing is something that has traditionally been entirely manual and time-intensive. But technology can help significantly improve this area, with AP automation having the potential to significantly improve the way all businesses handle their invoice process.

Increasing speed and efficiency with AP automation

Speed and efficiency are two of the most important traits to have for businesses who want to remain competitive. This is why reliance on manual invoicing and AP processes is a hindrance for any company looking to expand and grow.

Manual processing is not just costly in terms of time, it also runs the risk of disrupting cash flow, preventing businesses from taking advantage of early payment discounts and straining relationships with vendors or suppliers. If your business still uses manual invoicing processing then you are at risk of being left behind, with suppliers more likely to favor competitors using modern processes.

AP automation makes the entire invoicing process more efficient, speeding up the pace of processing any given invoice thanks to its ability to automate. Team members no longer have to deal with inputting data, approvals or any other part of the processing system. Instead, the automation software handles all of the busywork.

With no more need for manual data entry and fully automated workflows, invoices can move through the system at far greater speed. They can be processed and routed to the appropriate stakeholders quickly and efficiently, allowing invoices to be approved in just a fraction of the time it would take in a manual system.

By speeding up the entire process and removing the potential for delays, AP automation allows companies to make much prompter payments and more effectively manage their cash flow. With a far lower risk of payment delays, relationships with vendors and suppliers should naturally improve.

The cost savings of AP automation

It is not simply time that implementing AP automation can save your business, but direct costs as well. Automation poses a major saving in operational costs by eliminating the need for labor-intensive manual processes, with the software instead handling the majority of the invoice processing labor.

With the time that staff would otherwise have spent on those tasks, they can instead pursue more value-adding work instead. All of the time saved through AP automation is made available for your business’s growth and development, allowing the team to focus on the work that they do best.

Aside from the savings in labor costs, removing the need for paper invoices instantly saves you money on paper, printing, and storage. As invoices are entirely handled within the digital space there is no need to deal with mailing or printing.

Meeting compliance requirements with AP automation

Another competitive factor to consider is the way that AP automation makes it easier for businesses to operate in the international space. An increasing number of countries now mandate the use of electronic invoicing for all businesses doing trade in their jurisdictions, so only companies with the capability to generate and handle digital invoices can operate there.

If your business wants to expand to new markets, you cannot ignore the importance of AP automation and the ability to handle all invoices electronically.

From a competitive standpoint, the case for AP automation over a purely manual invoicing process should be clear. Businesses who are serious about their growth prospects cannot ignore the benefits of utilizing AP automation tools.