Reduce Costs With AP Process Improvements

CalendarJune 29, 2023

Reduce Costs With AP Process Improvements

Implementing effective accounts payable (AP) process improvements can result in substantial cost reductions for businesses of all sizes. By streamlining payment cycles, minimizing errors, and efficiently managing cash flow, your AP can transform from a resource drain into a profit center.

Increase Efficiency by Improving AP Processes

With automated AP processes, your AP team can significantly reduce – or completely eliminate – manual data entry. The burden of managing and filing paperwork becomes negligible with AP automation. This enables AP to process invoices more quickly and with greater accuracy, effectively reducing human error and increasing reliability.

Why it matters: Reducing the time it takes employees to complete AP tasks allows them to focus on more value-add projects.

AP Process Improvements Mean Faster Payment Processing

When a company improves its AP processes, it optimizes efficiency and expedites payment completion. By eliminating bottlenecks and minimizing delays in processing, suppliers receive payments faster, which is a win-win for everyone involved.

Why it matters: Paying suppliers faster builds stronger relationships and improves overall cash flow.

Reduce Errors and Time Spent Fixing Them

Manual data entry is prone to errors. These errors often lead to delayed payments, duplicate payments, incorrect payment amounts, and frustrated suppliers. Depending on the severity or nature of the errors, they can pose significant risks to the companies involved.

With payment fraud on the rise, it’s crucial to avoid exposing your company to the risks associated with manual payments. AP automation reduces the potential of human error and comes with built-in safeguards and fraud monitoring. These features proactively alert AP teams of any potential issues during the payment process.

Why it matters: By eliminating manual processes, companies can drastically reduce their payment discrepancies and overall fraud risk.

Manage Cash More Effectively

An automated AP process provides real-time visibility into a company’s cash flow. With a clear picture of outstanding invoices, businesses can prepare for expenses and avoid unnecessary spending. This level of transparency also empowers companies to make informed decisions regarding payment prioritization, turning AP into a more strategic part of the company’s overall mission.

Why it matters: With a complete AP picture, companies can better prepare for upcoming invoices and allocate payments based on priority without overspending.

Decrease Processing Costs

Manual AP processing is time consuming and resource intensive. AP automation reduces the cost of processing invoices and lowers the amount of employee time spent on AP. That’s money saved on paper, labor, and error remedies, all while ensuring a more efficient way to make vendor payments.

Why it matters: Paper is a costly resource that can be reduced – or even completely eliminated – through the adoption of AP automation.

The Bottom Line

AP process improvements can help businesses cut costs in a variety of ways. A more efficient workflow can markedly increase efficiency and reduce time spent on error-prone, manual tasks. Automated AP processes also lead to streamlined systems that ensure prompt supplier payments, strengthened supplier relations, and reduced processing costs across the entire AP department.

Don’t waste time and resources on manual processes. Contact our in-house experts at Corpay today to discuss your current AP workflows and explore how our end-to-end solutions can simplify and streamline the way you pay.