Accounts payable (AP) is treated as an unavoidable cost of conducting business by most finance executives. Tech-savvy Chief Financial Officers (CFOs), however, beg to differ. They maintain that AP automation solutions have tremendous value; if leveraged properly, it can transform the accounts department from an ‘expensive’ center to one that generates good revenue. Read on to find out how businesses can reap amazing financial rewards by focusing on AP automation.
Why Should CFOs Capitalize on Early Payment Discounts?
Digitization of the invoice approval process is an effective method to conserve both money and time. Considering the fact that only a small percentage of organizations take advantage of early payment discounts, it becomes necessary to make use of segmentation tools for optimization of supplier payments. If CFOs take the initiative to speed up invoice approvals through AP automation, it becomes easier to negotiate deals with vendors. Many buyers will jump at the prospect of paying invoices early in lieu of a discount.
How to Leverage Payable Data for Better Cash Management?
CFOs need to employ segmentation tools for the optimization of supplier payments. This leads to an increase in cash flow visibility and effectiveness of disbursements. Suppliers must be grouped together based on the importance of their relationship with your business, payment volumes as well as the purchase value. The result will be an improvement in vendor relationships while securing prompt payment.
Creation of Scalable Processes that Decrease Hiring Needs
CFOs need to figure out how staff members are making use of their time in the absence of an automated AP department. They should address any frustrations that arise from hunting for data.
AP automation decreases the need for manual work, providing your staff with the opportunity to process a larger number of invoices daily, effectively handle vendor requests and exception, and hasten the handling of exception processes.
Many organizations have begun to automate invoice payments in order to decrease overall payment costs. Contact us now to understand the nuances of next-gen AP automation, and how the CFOs can utilize this to ensure maximization of their return on investment.