Over the last few decades, accounts payable practices have modernized exponentially. What once was a monotonous, paper-based process has evolved into a smoother, digitally-enhanced procedure. As popular as AP automation has become, just ten percent of businesses have fully automated their AP process. Only 38 percent of small to medium sized businesses have a partially automated system in place.
Organizations that have transitioned to a fully AP automated system are benefiting from its functional capabilities and saving money. For those that implement manual methods, adding a customizable, flexible, and user-friendly AP automation solution can eliminate unnecessary spending and accelerate productivity.
Slash Costs with Paypool AP Automation
Without a reliable AP process in place, it can be difficult to execute a steady and consistent workflow. If your business is utilizing partially-automated or manual methods, it is likely that your risk of errors will increase along the payment cycle. This inefficiency has the potential to generate extra costs. While they may not be visible on the surface, they can negatively impact your financials.
Paypool’s AP automation solution can reduce wasteful spending related to the following items.
Invoice Processing
One of the most drastic cost-saving changes a company may experience as a result of AP automation is its cost per invoice. Although savings can vary depending on the amount of invoices processed, AP automation could cut processing costs by nearly 80 percent.
Late Payments
Paypool gives you the means to easily schedule payments, which can help you take advantage of early pay discounts. On average, this can save you around two percent on your invoice depending on payment terms.
Manual AP methods slow down operations, which can lead to late or missed payments. Research shows that just 38 percent of business invoices are paid on time. In fact, late payments cost small and mid-sized companies around $3 trillion globally. This is difficult to recoup, especially when late payments occur consistently.
Duplicate Payments
Organizations can lose thousands of dollars a month with repeat payments. A recent APQC survey revealed that between one and two percent of organizations’ annual disbursements are duplicate or include errors. If you are looking to grow your operations, you can’t afford to misuse funds in this manner.
Duplicate payments are nearly avoidable with Paypool.
Document Storage
The more invoices you collect, the more storage you will need. Renting storage space or purchasing multiple filing cabinets can add up quickly. Depending on a company’s needs, it can cost around twenty dollars to store one document. These costs can spiral out of control, especially if you factor in other expenses associated with manual storage, such as insurance costs. Automation eliminates this cost completely because invoices are stored virtually, safely, and securely.
Audits
It can cost approximately $70 per confirmation in a manual audit, which can vary depending on billing rates and any follow-up work on inaccuracies. However, Paypool trims audit costs and the time it takes to complete them because auditors can get immediate access to accurate transaction data and AP reports.
Increase Profits with Paypool
An AP department using slow, out-dated manual processes is more prone to errors. This can produce inaccurate forecasting and lead to loss of revenue. Adopting Paypool’s AP automation solution can simultaneously generate a more efficient process and protect your bottom line.
Thousands of companies have turned to Paypool to help generate cost savings. Request and demo today, and learn how we can create a more efficient AP process for less.