How Automation Transforms Procure-to-Pay Cycles

Ever wonder why you’re not seeing measurable improvement in your accounts payable department’s procure-to-pay cycles? Take a look at your AP processing techniques. Relying on manual, paper-based invoice and purchase order processing is the number one culprit for slow, inefficient P2P cycles due to:

  • A lack of visibility into key information.
  • Data is poorly organized and not easily accessible.
  • Information is not captured in real time.
  • Systems cannot integrate with existing legacy technology.

What Paper-Based Processing Does to Procure-to-Pay Cycles

Paper-based accounts payable processes have a negative impact on financial visibility and your ability to forecast cash flow. According to a 2015 report by the Institute of Finance & Management (IOFM), the main reasons that manual processing fails is due to:

  • Poor Procurement – Manual invoice and purchase order processing provides zero visibility into liabilities with suppliers.

  • Slow Invoice Processing – The IOFM report states that 74 percent of financial organizations receive invoices in paper, email, fax or PDF formats. This means data needs to be manually entered into AP department systems, leading to more keying errors and mistakes.

  • Payment Problems – Paper checks are slow to arrive, and are at higher risk for theft or unauthorized viewing. Yet 65 percent of businesses surveyed by the Remittance Coalition admit to paying suppliers only with paper checks. The biggest problem faced with paper checks is a lack of visibility into payment data.

The Solution to Inefficient Procure-to-Pay Cycles? AP Automation

If you’re tired of your AP department dealing with the pitfalls of paper-based processing, it might be time to consider an automated solution. Automated technology takes the legwork out of tiresome AP tasks, enhancing processes to improve visibility into procure-to-pay cycles.

  • Electronic Purchase Orders – Automated technology produces electronic purchase orders, enabling AP departments to better manage and track spend, as well as reduce costs associated with manually producing POs. Additionally, electronic delivery means POs are immediately available for viewing by suppliers and vendors.

  • Scan & Capture – Scan and capture data services enable AP providers to process invoices easily, no matter the format they’re received in. Companies reduce fees associated with invoice processing and achieve real-time cash flow visibility.

  • Electronic Payments – Automated and electronic payments are easily submitted through a secure web portal via the Automated Clearing House (ACH) network. The simplicity of electronic payments means AP departments are able to better track liabilities and improve cash management.

Don’t Wait Another Minute to Improve Your Procure-to-Pay Cycles

The switch from manual AP processing to automation should be simple. PAYBOX® AP is an automated AP processing platform from the minds at Direct Insite. The cloud-based, user-friendly technology makes complicated AP processes and procurement simpler than ever before. You’ll gain access to key information that is current, actionable and transparent.

It’s time to enhance your procure-to-pay cycle. Contact Direct Insite today to get started.

AP Strategies