Four Keys to Upgrading Invoice, Payment Processes

Invoicing processes directly impact any company’s revenue, that is why companies are using more efficient payment systems today. When the coronavirus pandemic occurred, it brought an urgent need for automation in many aspects of work, and it didn’t leave invoicing and payment systems behind. Having inefficient accounts payable (AP) processes is easily noticeable to vendors and suppliers, and these are relationships every organization wants to keep intact, hence the need for an efficient system.

At the onset of the pandemic, many companies, in their drive towards AP automation, turned to quick fixes with the notion that they would suffice until things returned to normal. However, with continued supply chain disruptions, geopolitical unrest, the Great resignation, and a pandemic still very much around, we have seen that things will not likely return to how they used to be. Companies, therefore, need solutions and approaches that will help deliver the agility and resiliency they need to survive and remain relevant.

Unlocking the full potential of AP automation

Business leaders already recognize the value in account payable automation. In fact, according to a 2022 study by Kofax Inc., 85% of enterprise executives plan on focusing automation efforts on AP. A lot of work, however, remains to be done as almost one-fifth (17%) of respondents still rely on manual AP processes.

How can a company unlock the full potential of AP automation? Here are four capabilities that, when used together, can help to turn your AP processes into a resilient source of strategic value.

1. AP document intelligence. The automation solution must be capable of processing financial documents in any format or language and from any source. This multi-channel invoice capture allows suppliers to use their preferred channel, whether scanned, paper-based, XML, or PDF.
2. Electronic invoicing and self-service portal. The ability to send and receive invoices electronically eases business interactions for all parties involved. Also, a self-service portal that allows the supplier to track the progress of invoices and payments helps to improve their experience significantly.
3. Dynamic workflows. Managing approval and exception workflows within the AP process is crucial for improved invoicing and payment. This helps the AP team to maximize productivity and reduce errors.
4. Enterprise Resource Planning (ERP) integration. Connecting your AP automation solution with any financial management system using pre-built connectors is key to improved and seamless invoicing and payment processes. This makes it easy to route validated data into your existing ERP without wasting time or money on custom integrations.

Failure to achieve an end-to-end AP automation can cause slow, error-prone invoice processing and other problems. Intelligent AP automation is the key to unlocking AP’s true potential for smoother business operations.

Sweet Tips from Ally:

Upgrading your invoice and payment processes can seem like a daunting task, but it doesn't have to be. By following these four key steps, you can streamline your process and make it more efficient. Not only will this save you time and money, but it will also help improve your relationships with your customers.