Despite the conversation around digital transformation and the DX revolution, accounts payable departments have been slow to digitize. A current study found 36% of businesses are still using paper invoicing while 47% still rely on manual approvals processing, and 49% of B2B payments are still paid by check, according to a recent report from Business Insider. With so many lagging behind, 2021 is going to be the year where those who are digitizing AP can gain a competitive advantage. With this in mind, we've decided to share 4 Accounts Payable New Year's Resolutions for accelerating your accounting departments digital transformation.
1. Harmonize AR and AP
Cash flow is critical for both large and small businesses—accounts receivable is money coming in, accounts payable is money going out. Harmonizing the two is even more important than ever to maintain healthy cash flow in the face of major market fluctuations. Continuity between these functions is of growing importance. For SMBs, accounts receivable and accounts payable tasks are often performed by the same people. Digitizing AP and AR while creating seamless user experience in your solutions makes it easier for small teams to stay small, even when the company grows rapidly. For enterprises with multiple locations and lines of business, keeping all your teams on the same page with real-time, consistent data is critical to smooth operations.
2. Eliminate or Reduce Paper-based Invoice Processing
We have reached a tipping point for automation and the truth is that manually entering and re-entering data into multiple systems is becoming increasingly archaic. It is time consuming and error prone and therefore costly. Now with cloud-based applications, AP automation with data capture is available on a monthly subscription basis, which means there is virtually no upfront cost. Once you are up and running, this service will deliver ROI almost immediately. Of course not all optical character recognition is the same, so shop around for a best-in-class solution that lets you use whatever scanner you already have.
3. Integrate ERP and AP Automation
No matter which enterprise resource planning or accounting solution you are using, there is more than likely an AP automation solution built to integrate with it. Integrating your AP and ERP is critical to realizing the full value of both solutions. There are a lot of key performance indicators to discuss in accounting but when it comes to AP, Time is the mother of all KPI's. Integration with ERP is a must for reducing your time per invoice.
4. Reduce or Eliminate Paper Checks
Not only are paper checks more time consuming, they are more vulnerable to fraud. They can also simply get lost on the way to your vendor, which might mean late fees for your company. Find an AP solution that enables you to make payments using multiple methods including ACH, ACH Direct and other ePayments. Of course the world isn't ready to completely eliminate checks yet, so be sure to look for a solutions that supports Positive Pay for those checks you still have to write. Learn more about Positive Pay
If you are a Microsoft Dynamics GP user, digitizing AP processing should be one of your top New Year's resolutions for 2021. Fidesic is the go-to AP solution for GP. With Fidesic AR, you can harmonize payments and receivables. What's more, Fidesic delivers unmatched functionality for multi-location payments, and best of all, it works right inside GP with the tightest integration of any AP solution for Dynamics GP.
