Companies who consider investing in any of the recent account payable programs available usually have one thing in mind: faster invoice processing. While it is true that the main purpose of automating an AP system is to enhance the invoice processing and make it more efficient, the upgrade has more than one purpose.
In fact, with the correct system and programs in place, AP automation will significantly improve a company’s bottomline. Here’s how:
#1: Invoice Location And Replacement Cost
As soon as an invoice is received is scanned and stored properly by the automated AP system. This reduces the cost when the original copy is lost or misplaced. It typically costs $120 to locate a missing physical copy of an invoice and up to $220 to replace the lost copy. With the automated system, allows companies to avoid these excessive expenses.
#2: Cut Down On Cost Of Copies (And Paper)
The manual invoice processing requires several copies of the same invoice which can be very costly. When the invoice is uploaded to the system, there is no added cost for copies. Everyone can have access to the document and the company does not have to spend extra on the copy and the printing of the invoice.
#3: Save On Storage Cost
A dedicated storage room for the copious copies of invoices requires a lot of space. The bigger the business, the more room required for invoice storage. Instead of wasting money on renting out more space just for physical copies of invoices to gather dust, account payable programs offer digital storage spaces that will not occupy any physical room inside the office.
You can store as many copies of the same invoice without worrying about paying for the expensive storage fees.
#4: Early Payment Discounts
The automated AP system is programmed to send payments on time and even catch early payment discounts. Even if the discount for each payment do not look very valuable at first, at the end of every year they will add up and go towards the company’s bottomline.
#5: Form Better Supplier Relationship
It is a must for all businesses to develop and cultivate a good relationship with their vendors and suppliers. Not only will this relationship result in better deals for future purchases, the loyalty between two parties means you are given priority in times of emergency and need. Having a list of go-to suppliers is always advantageous, don’t discount this perk when double thinking the reasons to automate your current AP system.
#6: Avoid Duplicate Payments
One duplicate payment may not be a cause for panic, but when this becomes a regular issue, it can severely affect the company’s bottomline. A simple upgrade to an automated AP system will reduce or even eliminate the chances of sending out double payments, meaning your company will not lose any more money due to simple human errors.
There is so much an automated AP system can offer a company’s bottomline. Don’t let unfamiliarity get in the way to increase your savings and profitability!
Excellent account payable programs can help businesses improve their bottomlines. This is very true for Nexus Systems and that is why together with the brands that use our solutions, we’ve seen growth over the years!