Power of PAYBOX®
How Automation Leads to Better Accounts Payable Management
Accounts payable management is often overlooked when it comes to process improvements in large organizations. Why? Because most enterprises are used to manual methods of paying invoices and purchase orders. It may seem like your AP system is working, but if your company is still relying on paper-based processing, you might be seriously hindering company cash flow and working capital.
There’s a reason so many companies have taken steps to incorporate an automated AP solution into their accounting departments. Aside from easier accounts payable management, automation means you can optimize working capital management, fund company growth and develop strong, lasting relationships with vendors.
3 Ways Automation Translates Into Stronger Accounts Payable Management
Accounts payable can feel like a time-consuming, expensive endeavor to take on, but it yields a variety of benefits for your organization. The ability to better forecast cash flow and improve liquidity opens up new funding opportunities for your enterprise.
But if you’re still not entirely convinced that automation is the key to better accounts payable management, here are three ways an automated platform enhances AP processes to improve your overall AP strategy:
- Invoices are presented and settled electronically. Not only are manual invoices expensive to create and distribute, they’re also far more prone to errors. An automated solution generates and sends invoices to vendors, simplifying invoice validation and acceptance. And since purchase orders and invoices are handled electronically, there is no need for human intervention – which means statements are less likely to contain errors.
- Automatically generated reports improve visibility into working capital. Paper-based AP processing presents a serious problem for treasurers and CFOs who want to track working capital. Common problems include:
- Data that is sometimes lost, and not organized efficiently.
- Settled invoices are not recorded in real-time, meaning information is not accurate.
- AP systems are not integrated with other company technology.
An automated platform that generates reports grants CFOs and company treasurers the real-time visibility they need to effectively manage working capital and forecast company cash flow. Granular insights also improve your CFO’s ability to analyze spend patterns and negotiate payment cycles with suppliers.
- Early payment discounts are easily managed. It’s a common practice for vendors to give buyers a discount on invoices that are paid before the settlement date. As a buyer, those discounts incentivize you to keep paying invoices early. Automated AP technology supports pre-determined and early payment discount rates. You’ll settle invoices at a reduced rate, and your supplier collects payments on time. Everyone wins.
Accounts Payable Management Made Simple With Direct Insite
Direct Insite’s PAYBOX® AP platform streamlines complex accounts payable and procure-to-pay processes. A strategic tool for your company’s accounts payable department, PAYBOX® AP is a highly secure and scalable platform that delivers measurable benefits for your business.
Accounts payable management just got a lot easier. Contact us today to learn more.