Drowning in Manual AP Tasks? Find Out Why Automate Accounts Payable is for You?

Let’s make it clear from the start: it is the year 2024. Automation is part of our lives now. We started using automatic coffee makers for our daily dose of morning freshness over 20 years ago, and about eight years ago, we began using fitness trackers and other automated health devices to monitor our well-being. We stopped cleaning our home by ourselves a decade ago and began using vacuums.  

Do you know why? Why would we automate everything?   

Because we just hate doing the same stuff over and over again, so we find a smart solution to focus our time on spending it on something more valuable. Now, these are just a few examples of how automation has changed our personal lives. Now, what about our professional lives?  

Face it: don’t you just hate spending your time on something as repetitive and mundane as accounts payable? In a world where so many of the tasks of our daily lives, from brewing our morning coffee to managing our health and cleaning our homes, have been automated, it is hence exasperating not to get relieved from some of the manual activities at work.  

Think about it: manually entering data, processing invoices, and handling payments can feel like a never-ending cycle of tedious tasks. It’s not just about the time wasted; it’s also about the potential for errors, delays, and inefficiencies that come with these outdated methods.

In today’s fast-paced business environment, where efficiency and accuracy are crucial, sticking with manual accounts payable processes is like choosing to walk when you could be driving a car. 

If we have automated our lives personally, it is high time we adopt the same approach for our financial operations. A logical decision would be a smart solution that reduces errors and eliminates unwarranted spending of capital.

That is a no-brainer: going for a system that will reduce processes and steps. Obviously, these are very strong advantages, but many organizations are still sitting on the fence. 

In fact, most organizations are still clogged with laborious, manually intensive AP processes. Their reliance on manual operation has led to quite a few inefficiencies and consequently higher labor costs. Manual accounts payable processes are extremely labor-intensive as well as very time-consuming.  

Full automation can save up to 40 days of AP invoice processing time, therefore saving the average SMB up to $12 per invoice. This does not sound very persuasive, particularly when about 80% of mid-sized companies expect a rise in the volume of payments and a 75% rise in invoices over the next three years. 

So, What’s the Solution? The answer lies in embracing cutting-edge AP automation technologies. Accounts payable and AP automation software offer a way to automate all financial activities, thereby transforming how a business operates its accounts payable and accounts receivable processes. 

Challenges of Manual AP Tasks 

Data Entry Manually: This is one major issue with manual AP; it is laden with inefficiency and errors. Many SMBs— up to 86%— are still operating manually, thereby increasing the chances of errors and costly rectification later. 

Compliance Issues: Managing regulatory requirements is highly cumbersome. It requires each transaction to be recorded in the books, for which there is heavy employment without automated accounts payable software. 

Delays in Processing: Most manual AP processes are highly susceptible to delays. For instance, companies of medium size say their AP departments spend about 50% of their time trying to collect invoices and pay suppliers. This eats into productivity and may come with bad relationships with vendors and lots of late fees. 

How AP Automation Solve These Problems  

Smoother workflows: The automation of AP means doing away with boring and repetitive tasks like the data entry process or invoice processing, among many others. Accounts payable automation software can save a business approximately 70-80% of time taken for any given task, thus allowing the workforce to engage in more strategic activities. 

Compliance is enhanced: AP automation renders enterprises compliant with regulatory standards. Accounts payable automation software keeps records and minimizes errors, which is important for compliance. 

Increased processing speed: Automated systems increase the speed of processing invoices. Faster Approvals and Payments AP automation enables companies to make faster approvals and payments for their invoices, raising the satisfaction levels of the vendors. Companies that have fully implemented AP automation have reported a 74% increase in vendor satisfaction; those with partial automation have reported only 40%. 

Suggested Reading: What is AP Automation and How Does It Work?

Numbers Say It All 

Fully automated accounts payable can reduce invoice processing time by an average of 40 days and save an SMB about $12 per invoice. On the flip side, 52% of SMBs face issues with receiving invoice payments on time, which impacts vendor relationships. All of these issues are resolved with the fast and accurate processing in AP automation. 

Why Opt for Zenwork Payments 

If you’re ready to experience the benefits of AP automation, Zenwork Payments is the solution you need. This advanced accounts payable software offers a comprehensive AP automation solution designed to simplify your financial processes.  

Zenwork Payments automates invoice capture, approval, and payment tasks in order to make AP less subject to human error. It allows you to manage AP easily, cut processing time, and reduce manual errors with more intuitive interfaces and reliable features. Expect about 70-80% in savings from time, while vendors are delighted with Zenwork Payments, working within regulation. 

Conclusion 

At present, AP automation is not a trend but a necessity in any organization that aims to increase its efficiency and reduce pressure on the workforce. Integration of account payable automation software such as Zenwork Payments makes your financial process efficient, optimizes time used, and improves the relationship with vendors. 

 Stop holding your business back with outdated manual ap systems; leap into efficiency with Zenwork Payments. Learn how this AP automation solution can take your accounts payable to the next level and set your business up for even more success.