How Does SutiAP Help You Overcome Common Challenges of the AP Process?
Many accounts payable challenges originate from manual, paper-based invoice processes such as manually keying line items, writing paper checks and maintaining manual records and spreadsheets. Making B2B payments with paper checks is slower and more expensive, and the errors and delays from manual invoice processing can be disastrous for your firm. Manual processing, frequent delays, and employee labor account for high costs per invoice in manual AP departments. The higher the invoice amount, the longer it takes to process invoices, and the more personnel are involved in AP processing.
However, automating the accounts payable process reduces the time it takes to manage invoices. Most enterprises that automate AP processes reported needing fewer workers to process invoices, allowing them to focus on more forward-thinking, value-added operations.
Purchase Order
According to a survey report, manually executing a purchase order can cost as much as $89.73. This is due to fixed and variable expenditures, such as salaries and postage, office supplies, and hourly labor. Other difficulties include the Lack of visibility into open purchase orders and circumstances where there are informal requisition procedures.
Top Challenges
- Lack of visibility into open purchase orders
- Concerns over the PO process delaying purchases
- Informal requisition process
- Unapproved purchases
How SutiAP Helps You Save up to 60% of PO Costs
Companies that automate the PO processes have reported savings of up to 60%. They can save time using capabilities like invoice matching and instantly access information in the cloud. There is no need for file cabinets or a long paper path. Automation makes accurate budgeting and forecasting based on real-time data, and it assists financial teams in analyzing spending before and after it has occurred.
Invoices
For instance, if you have one full-time AP clerk processing invoices at $20 per hour or roughly $3,440 per month, 300-400, invoices would cost your company around $9-$12 per invoice. When invoices are processed manually, they are more likely to be misplaced, and there needs to be more accountability throughout the process. Errors and long approval times are more likely to occur.
Top Challenges
- Time and money associated with Manual Data entry
- Lack of accountability and slow approval processing
- Inaccurate and Lost invoices
Cutting Invoice Processing Costs
The cost per invoice can be reduced to $2.36 with automation. It reduces the data entry time and removes the need for approval follow-up because anybody in your organization who needs to approve invoices can do so using their computer or mobile app. SutiAP solution can help minimize fraud by tightening controls and reducing errors such as manual keying errors and duplicate invoices. You can create automated workflows based on location, invoice amount, department, etc.
Payments
The possibility of fraud has become even more frequent since the epidemic, and it is one of the significant difficulties businesses face regarding payments. Between the first and second quarters of last year, there was an increase in fraud, with accounts payable being the most targeted department.
Companies attempt to overcome this problem by tracking payments via email and keeping data in spreadsheets, but this frequently fails. Most AP teams observed a lower risk of fraud with automation. They also saved money by capturing supplier discounts and cash rebates using virtual credit cards. Outsourcing vendor data management also saves time on updating supplier information, and two-way sync systems can automate reconciliation, saving time and avoiding errors like duplicate payments.
Obtaining a 360º view
Due to the Lack of proper workflow, many organizations miss out on a 360º perspective of their payables. The software centralizes all AP procedures and provides complete visibility into the process. For instance, SutiProcure is an easy-to-use system that allows you to handle POs, invoices, expenses, and payments in one place. You can enable automatic routing and simplify approvals, get a better handle on forecasting with a complete view of your spending, and make timely payments even through the smartphone on the go.
