The Institute of Finance & Management (IOFM)’s Finance & Accounting Appreciation Week 2024 is September 23-27, 2024. This year, make sure to give special recognition to your accounts payable (AP) team. These unsung heroes literally keep the lights on at your business, making sure bills are paid on time and you remain in good standing with suppliers.
Though treats like flowers, cards, and gifts are surely appreciated, equipping your AP team with the technology tools they need to do their job efficiently is one of the best ways to acknowledge and reward these hard-working professionals.
How Automation Helps AP Teams Shine
AP automation software helps teams work more efficiently and offer strategic value to their business in several ways.
Streamlined Processes
AP automation reduces the need for manual tasks like data entry, invoice processing, and approval routing. By automating these duties, teams can process invoices faster, reducing AP cycle times.
Reduced Errors
Automated systems are designed to minimize human errors that often occur in manual processing, such as duplicate payments, incorrect data entry, or missed invoices. This can lead to more accurate financial records and reduced errors.
Improved Visibility
AP automation provides timely visibility into invoice status and payment deadlines. This enables AP teams to make quick and informed decisions related to cash flow and helps the business take advantage of early payment discounts and avoid late fees.
Better Record-Keeping
Automated systems can log transactions and help make them easily traceable, which can simplify the audit process and support compliance with internal policies and external regulations.
Data Analysis
With automation, AP teams can easily access and analyze large volumes of financial data. This data can be used to identify trends, optimize payment strategies, and improve supplier relationships, turning the AP function into a source of valuable insights for the business.
Cash Flow Optimization
Automation allows AP teams to manage cash flow more effectively by scheduling payments strategically so the company has sufficient liquidity while maximizing the use of available funds.
Rich Supplier Relationships
Faster and more accurate payment processing improves supplier satisfaction, which can lead to better terms and stronger partnerships. Automation also helps facilitate better communication with suppliers through automated notifications and portals that allow suppliers to check payment statuses.
Collaboration
AP automation can integrate with other financial systems, including accounting and enterprise resource planning (ERP) software, helping enhance collaboration between the AP team and other departments such as procurement, finance, and treasury. This integration supports the flow of data across the organization, which can lead to more cohesive decision-making.
Focus on Higher-Value Activities
By automating routine tasks, AP teams can allocate more time and resources to activities that add strategic value, such as negotiating better payment terms with suppliers, optimizing working capital, or supporting broader financial planning initiatives. In turn, this can impact employee satisfaction as AP professionals are allowed to focus on more rewarding and intellectually stimulating work.
Support for Scale
As a business grows, the volume of invoices and payments increases for the AP department. AP automation solutions can scale to handle this growth without requiring a proportional increase in headcount or resources, helping the AP function remain efficient as the business expands.
AP Automation Customer Success Stories
AvidXchange’s customers are experiencing the benefits of AP automation within their accounting and finance teams. Learn how real AP pros have used automation to deliver tangible benefits for their businesses.
Robert High Development
Robert High Development, a leader in self-storage construction, faced inefficiencies in its accounting department due to reliance on paper-based processes. The team manually printed, coded, and filed invoices, with checks sometimes delayed or lost in the mail.
Recognizing the need for change, the company implemented AvidXchange’s purchase-to-pay solution. This automation digitized invoice processing, approvals, lien waiver management, and payments, eliminating the need for paper storage and manual processes.
AvidXchange’s cloud-based system enabled faster, more secure payments and improved approval workflows, reducing errors and ensuring business continuity. The automation has also allowed for seamless reconciliation and easier document retrieval, significantly enhancing the AP team’s productivity and job satisfaction.
Since implementing AvidXchange, Robert High Development has cut invoice and payment processing time in half, saved on operational costs, and increased efficiency despite a reduced workforce.
&Barr
Seeking to modernize payments, &Barr, an advertising and public relations agency, chose AvidXchange’s payment automation solution built for media. This system streamlined payments by reducing processing time from five hours to just 30 minutes, freeing &Barr to focus on client work and maintaining healthy cash flow.
&Barr appreciates AvidXchange’s simplicity, reliability, excellent customer service, and consistent rebates, all of which have significantly improved the agency’s financial operations. The automation and efficiency gains have not only saved time and money but allowed &Barr to more effectively serve its clients.
Property Management Systems, Inc.
Property Management Systems, Inc. (PMSI), a condominium and community association management firm, faced inefficiencies in its AP process. Community managers were using a paper-based system that involved manually sorting, routing, and approving invoices, leading to wasted time and difficulties in providing timely updates to suppliers and community boards.
To streamline its AP tasks, PMSI implemented AvidXchange. This digital solution automated the invoice approval process, allowing community managers to approve or reject invoices with just a click. The automation significantly reduced the time spent on AP tasks by 50%, freeing up managers to focus on providing better service to their communities.
Moreover, the new system enabled community boards to be part of the approval workflow, even when members were not local, improving transparency and collaboration. PMSI has greatly benefited from the time savings and increased efficiency provided by AvidXchange, allowing the company to better meet the needs of its clients.
Final Thoughts
This year, during Finance & Accounting Appreciation Week 2024, the best way to show appreciation for employees is by equipping them with the tools and technology they need to excel in their roles.
Providing tech resources not only streamlines their daily tasks, making work more efficient and less stressful, but also empowers them to contribute strategically to the organization. When employees have access to the right technology, they can focus on higher-value activities, innovate, and drive the business forward.
This investment in their success can foster a culture of trust, enhance job satisfaction, and demonstrate that the organization values employee contributions.