Escape The Bottlenecks Of A Manual Accounts Payable Process

 

A member of the accounts payable department meticulously calculating financial data using a calculator on his desk, highlighting the inefficient and potentially time-consuming nature of manual accounting tasks.

 

Automated processes are widely recognised as the key to unlocking improved business efficiency and growth, with benefits including quicker delivery, efficient deployment of resources, lower costs, and steadier cash flow. Accounts Payable (AP) departments, in particular, can gain from automated solutions; while many business processes benefit from automation, invoice processing has a greater capacity to impact across the organisation, even to protect your company’s reputation with suppliers and customers alike.

 

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The Ap Bottlenecks Automated Invoice Processing Will Overcome

Many Accounts Payable problems arise from manual processes, such as painstakingly entering invoice data into an ERP, or physically matching POs with vendor statements.

Not only are these practices time-consuming, but they also increase the risk of bottlenecks in the AP process, leading to late payments, missed supplier discounts, and unpredictable cash flow. Bottlenecks typically include:

  • Missing information, such as the payee’s VAT registration number (up to 20 per cent of invoices lack the key information required for processing).
  • Matching errors due to discrepancies in data entry.
  • Invoices in unreadable formats.
  • Lost invoices, resulting in late payments and inaccurate company financial information.
  • Invoices from payees in different currencies
  • Invoices which require extra information to comply with statutory requirements.

How Ap Automation Can Solve The Problem Of Bottlenecks

By identifying the most common bottlenecks in your AP processes, you can implement automated solutions to streamline your systems, improve turnaround times, and save time and money. 

With AP automation, your AP team will no longer have to concentrate on time-consuming manual work. Instead, automation will simplify the process of three-way matching by capturing, comparing, and validating data on Purchase Orders, invoices, and delivery notes. Exceptions are automatically flagged for a human eye to investigate, while pre-defined criteria enable payments to be authorised quickly without extensive time being invested in cross-checking and approvals.

Book A Free Automated Invoice Processing Demonstration

At Cogent Consulting, we support companies to improve their AP efficiency by implementing automated accounts payable solutions. To arrange a no-obligation demo of our services, please get in touch today.

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