Quashing Common Myths Surrounding AP Automation

CFOs are under mounting pressure to deploy cost-effective optimization measures that will enhance efficiency and increase profitability.  In response, finance departments are embracing digital technology not only to compete, but to survive.  Organizations are increasingly replacing repetitive, mundane tasks with automation to accelerate growth and reduce expenditures.

The monotonous nature of Accounts Payable (AP) processes make them ripe for automation, however, misconceptions often stand in the way of progress. In this article, I’ll address concerns I often hear from organizations who are intrigued (but not convinced) about embracing technology in their AP departments.

Myth 1: There’s nothing wrong with our current AP Process

Reality Check: The fear of the unknown often causes resistance to embracing technology.  When employees become comfortable with manual AP processes, the thought of moving away from ‘what they know’ can be daunting.  A thorough analysis of your current invoice processing costs and how much this can be reduced with automation will easily show the inefficiencies of archaic processes. Additionally, surveying the level of job satisfaction may bring to light the need for improvement.  Processing supplier invoices manually can create a stressful and unfulfilling work environment as staff become overworked and vulnerable to making financial errors.

Myth 2: AP Automation is Too Costly

Reality Check: While the initial cost may appear intimidating, AP automation solutions such as ExFlow deliver significant savings by enabling organizations to capture early payment discounts, decrease labour costs and reduce human error.  In fact, ExFlow customers commonly report achieving ROI in less than 6 months.

According to the Australian Taxation Office, manually processing supplier invoices costs organizations around AUD$30 when financial and time costs are considered.  As ExFlow is a leading cloud based solution with volume based pricing, forecasting and improving AP metrics is straightforward and can reduce the cost to process invoices by up to 80%.

Myth 3: Loss of Control

Reality Check: Poor liability management and incorrect estimations can seriously hamper the financial health of an organization.  AP automation provides more control with comprehensive visibility into the company’s liabilities in real-time, facilitating strategic and informed decision-making.  A survey conducted by Ardent Partners revealed that 71% of organizations considered improving process visibility and control as a top driver for AP automation initiatives (source: Ardent Partners, “The State of ePayables“).

Myth 4: AP Automation Leads to Job Losses

Reality Check: AP Automation tools are not designed to make humans obsolute. Multiple studies have shown that rather than displacing jobs, AP automation frees up valuable time spent on repetitive, time-consuming tasks, allowing employees to focus on more strategic tasks that add more value to the organization.