If used properly, dynamic discounting can help businesses improve cash flow and establish beneficial relationships with their suppliers. A portion of vendors would have a higher demand for cash and could be more prepared to offer a concession in exchange for transaction acceleration when payment terms are stretched, and policies compel banks to hold greater funds before financing small firms. Companies pay their suppliers early in exchange for lower pricing and receive an enticing annual percentage rate (APR). Expedited payments imply suppliers won’t need to borrow as much money, and 100% factoring means fewer Days of Sales Outstanding (DSO), which lowers collection expenses and increases cash flow availability.
From the perspective of working capital, it is advisable to adopt an “all-in” strategy and push AP automation to its maximum level through e-invoicing, electronic information exchange, assessed invoice settlement, interconnected Purchase-to-Pay (P2P) operations, and self-service vendor portals. A shortened invoice-to-pay cycle aids in obtaining the greatest discount.
Assure The Success Of Dynamic Discounting: Pay Attention To AP Automation
The 2017 AP & Working Capital Report by Paystream revealed that AP automation requires significant attention to remove obstacles to advance payments incentive acquisition.
These obstacles include:
The time it takes for invoices to be approved; 41% of respondents said this was an issue.
39% of respondents cited incomplete or lacking data on invoices as a problem.
Lost invoices were cited by 36% as a major source of suffering.
Billing exceptions: 32% of respondents thought this was an issue.
Manually routing invoices for review and settlement was cited by 31% of respondents as a major barrier in their organizations.
Decentralized bill receipt: 30% found this uncomfortable.
Gaining the transparency, management, and speed of processing necessary for the effective implementation of dynamic discounting efforts depends on AP automation. An AP automation solution “simplifies and shortens billing cycle times, resulting in enterprises’ having a considerably better capability to secure early payment discounts,” the paper states. According to PayStream, clearance times decrease from an average of 45 days with no automation to an average of 5 days with minimal paper use.
The Cornerstone Of A Dynamic Discounting System Is Shaped By Spending Analytics
Without knowledge of supplier spending, invoice numbers, and payment schedules, it is hard to assess the possibility of such a dynamic discounting plan or determine the discount conditions that would generate the most interest. A dynamic discounting mechanism can be defined using expenditure analytics technology. A dynamic discounting method can be based on a variety of expenditure analytics dimensions, including:
Monthly expenditures by the supplier
Using PO or non-PO invoices to determine the distribution
Terms and method of payment
Tools for enterprise resource planning
Information from general ledgers, or the financial details of an institution
Orders for goods
Data exchanged by vendors
Risk assessments
Credit scores
Transactional data
Additional internal systems and outside resources
The way businesses may now gather specific spending statistics even on non-PO bills has changed dramatically over the past few years as a result of the rapid development in automation in the payment managing system and software, such as machine learning.
Dynamic discounting with the help of AP Automation allows the organization to take advantage of the highest gains based on a well-organized optimization framework that was developed utilizing previous data. The framework can be used to start negotiating payment standards and possible discounts with providers based on region and/or industry.
A Well-designed Shortened Invoice-to-pay Cycle Yields Long-term Advantages
Companies that issue invoices on paper use a lot of labor. The average invoice-to-pay cycle in such a situation lasts 30 to 120 days. Today, many solutions are available to enable digital invoice processing. Companies just need to choose an appropriate AP automation strategy.
The majority of AP automation projects contain some, if not all, of the long-term objectives listed below:
Decrease processing times and expenses
Lower rejection frequencies and other problems with invoice processing
Create a more efficient vendor payment plan to handle cash more effectively, limit spending, and maximize working capital
Reduce late fees and late payment fines as much as possible
Utilize data to make your operation more intelligent
To enhance performance and management, communicate AP data with operational stakeholders
Enhance relationships with suppliers and customers
Gain improved insight into the performance of the process, line items, and suppliers
Become more adept at accurately and promptly closing the “books” for the accounting period
Some factors to take into account include company-specific pain points, suppliers’ openness to adopting new employment practices, the competencies of the current network, and the viability of alternative approaches for each type of supplier.
Using AP Automation, You Can Receive Additional Early Payment Discounts
As you may expect, when all AP operations are computerized and automated, it is simple to receive discounts for early payments. In addition, there are other incentives available. If you settle a bill before 10 days as opposed to the mandatory net of 30, you not only receive the 2% price reduction (or whatever it boils down to), but you also qualify for dynamic reductions. These present you with an even bigger chance of profit.
Why do dynamic discounts exist? Discounts are given on a rotational basis starting on the first day and continuing till the final due date. They can be so profitable that complete e-commerce solutions have been developed around them. These implementations will enable the AP department to move fast and take advantage of all available advantages.
With a manual procedure, the typical AP staff will:
Spend around $6 to $15 handling invoices (some AP departments charge up to $25+)
Require 10 to 15 days to settle the payments (the lowest performing taking up to 20 days)
About 80% of invoicing processing is done on paper
Approve, process, and pay some or most of the bills manually
A fully automated accounts payable procedure, on the other hand, will:
Spend $2.18 on each invoice you process on average
Take 2.8 days on average to process a bill
As little as the possible paper is used.
Utilize an automated procedure to cut back on wasteful spending and boost productivity
(Source: Aberdeen Group)
You may reap the profits of such rewards for possible cumulative benefits of more than $5 each payment by using a payment automation system. If your company issues 20,000 checks annually, you might normally receive profits of more than $100,000.
The appropriate technological foundation helps achieve the desired Impact
A company willing to pursue AP automation and dynamic discounting can:
Judge vendors based on their capability to handle non-PO invoice-led inconsistencies
Minimize disruptions in the invoice approval processes
Offer additional traceability into purchase orders in various formats from numerous source materials
Remove or decrease manual processes
Start providing stronger emphasis on anomalies.
The performance of dynamic discounting is also heavily influenced by the efficiency of vendor supplier interaction and collaboration with AP automation projects. The vendor network needs to make it easier to interchange all types of paperwork digitally without being required to pay additional transaction fees. Most importantly, it must include dynamic discount administration features.
Here are a few examples:
Analytics and Supply Chain Financing Working Together
All parties profit when third-party financiers, purchasers, and suppliers are connected electronically. Both the customers and the sellers have the option of prolonged terms. In this open digital space, both parties can live in harmony.
AP automation enables you to analyze each payment for relevant supplier data and searches for chances for contactless transactions, going beyond the usual quarterly outreach to suppliers. Because electronic payments are 10 times more affordable than paper checks, ongoing vendor outreach results in additional savings for you.
More control Of DPO And Cash Release
As you may expect, increasing the days payable outstanding (DPO) will boost your revenues. You can keep your backup money on hand longer if the AP staff uses technological tools rather than manual ones. An electronic solution can give a company more control over when they pay vendors and thus more control over their DPO.
How? Utilizing electronic payment alternatives will hasten the completion of your payments. The requirements of complicated AP processes with numerous hierarchical levels, intricate approval workflows, different sites, several bank accounts, and foreign payments are met by payment automation solutions.
Consider the amount of time you could start saving if you weren’t required to manually manage checks.
Accounts Payable Automation’s 4 Foundations
Management Of Supplier Data
Six out of ten businesses are responsible for supervising and revising supplier documentation, according to the 2017 Zycus eInvoicing Report Card. The collection, upkeep, and renewing of supplier data is a very laborious and error-prone procedure.
A 2013 Gartner study found that AP automation reduces data management costs by $850 per provider annually. The suppliers may enter and update all of the data themselves because it provides a simple self-service interface, eliminating the need for the AP department to get involved. It keeps up-to-date, duplicate-free records that can help with strategic choices.
E-invoicing
When a company adopts electronic invoicing, they save the time it takes to process invoices and increase savings. Responding to supplier inquiries to find out their payment progress is the job that takes up the majority of the AP department’s attention. An e-Invoicing system frees up the AP department’s periodic supplier inquiries by giving suppliers end-to-end transparency into data, facilitating payment tracking, and serving as a direct engagement channel. Additionally, it allows them to choose from the different possible invoice types and gives them insight into the billing cycle.
Contactless Processing
The majority of firms spend 1-3 hours per week dealing with invoice processing difficulties including redundant invoices, human blunders, regular & repeated supplier calls, etc., as per the PayStream Invoice Workflow Automation Report. These problems cost AP departments cash and effort. By removing the requirement for manual comparison, automating exception management, and offering transparency into the whole invoicing process, Contactless Processing may serve to streamline end-to-end invoicing operations, allowing AP to realize additional savings and increase liquidity.
Dynamic Discounting Tools
With the help of dynamic discounting tools, businesses may make the most of accessible discounts to sustain cash flow and maximize liquidity. It also assists in tracking organizational savings targets with simple and timely indicators.
Regardless of how your AP department is currently seen within the company, AP will eventually become more strategic. Automation is necessary to maximize AP’s capacity to deliver priceless strategic inputs.
The Bottom-line
The chance for early payment discounts is significantly increased by extending net payment periods and offering sliding scale discounts after the usual discount date. Spending analytics, a shortened itemized receipt cycle, and best-in-class P2P solutions should be combined by businesses looking to significantly enhance financial KPIs through dynamic discounting. CFOs may optimize the financial supply chain and play the part of a genuine strategic partner by acquiring visibility into where funds are spent, adopting a contactless AP procedure, and fostering supplier cooperation and discounts captured through a specialized supplier platform.
If you are like most business owners, vendor management is one of the most challenging aspects of running your company. There are many layers to this process, from selecting the right vendors to managing their performance and ensuring that all contractors comply with federal and state regulations. An effective vendor management program will help ensure that your organization maximizes its purchasing power while minimizing risk exposure.
When it comes to vendor management, there are three basic questions that every business owner should be able to answer:
Who are my vendors, and what do they do for my organization?
How can we help them do their job better?
How can we ensure that our vendors comply with all the laws and regulations governing their industry?
The process of vendor management begins with selecting the right vendors. This is a critical step since it can directly affect the quality of your products and services as well as your overall profitability. You should clearly understand what you need from each vendor so that you can make informed decisions about which businesses to do business with.
This article will introduce you to the most important aspects of vendor management, including how to select and manage your vendors. We will cover some of the best practices for managing your vendors, including choosing the right ones, maintaining a strong relationship with them, and keeping them compliant with industry regulations.
What is vendor management?
Vendor management is a process that helps you manage the vendors you work with. The process involves managing your vendors, which can include doing things like:
Creating a list of vendors and identifying each vendor’s strengths and weaknesses. This can help you decide which vendors to use for different projects.
Monitoring the performance of your vendors. This includes ensuring they deliver on time and within budget, as well as completing quality work per your requirements.
Making sure that any agreements between you and your vendors are clear, fair, easy to understand, and enforceable by both sides if necessary.
Vendor management is an important part of running your business. It helps you ensure that you’re getting the best value for money from your vendors and that you’re working with reliable partners who can deliver on their promises.
Vendor management can be challenging, especially if you don’t know much about it. But once you understand the process and how to manage your vendors effectively, it becomes easier to ensure that you’re working with the right people for the job. This can help save time and money, which is always good.
Define roles and responsibilities.
When you’re just starting out with vendor management, there are a few key things to keep in mind. First, it’s important to define roles and responsibilities for everyone involved. This includes creating a vendor management team and developing a process for vendor management. Second, once you’ve established those roles, each person should know their role within the team—and how it impacts the other people on your team.
When creating your own unique process for managing vendors, you’ll want to consider whether there will be different levels of approval between senior leadership and individual contributors/managers/employees.
For this to work, each individual must clearly understand their role and responsibilities within the organization. For example, if someone is responsible for managing vendor contracts, they need to have an understanding of what their responsibilities are as well as how they impact other members of the team. Once you’ve established roles and responsibilities (and defined them clearly), developing processes around vendor management should be relatively simple.
Defining roles and responsibilities within vendor management is an essential first step. A vendor management team should be created, and a process for managing vendors should be developed. The team members’ roles should also be defined clearly by senior leadership; this will help ensure everyone understands their role within the organization. Once these roles and responsibilities have been established, developing processes around vendor management becomes relatively simple.
Implement a contract library.
A contract library is a collection of vendor agreements, contracts, and policies. It can be used to create templates for new vendors and add additional clauses as needed.
A contract library is especially beneficial if you have multiple contracts with different terms and conditions that vary based on your business needs or industry requirements. Creating a contract library will make it easier for you to draft new agreements or modify existing ones. The benefits of creating this document are that it allows you to keep all your agreements in one place, saving time and money.
To create a contract library, you need to determine which types of contracts are needed for your company. These may include standard agreements like an employee handbook or confidentiality agreement as well as more specific ones such as non-disclosure agreements (NDAs) and indemnification clauses.
Once you’ve determined what types of contracts should be included in your library, you can begin drafting them. To draft these documents effectively, it’s important to have some basic knowledge of legal terminology and principles so that they’re clear and easy to understand.
Develop an onboarding process
The first step in the vendor management process is developing an effective onboarding plan. This will help ensure that your vendor gets up to speed quickly and provides you with a way to ensure that they are meeting all of your expectations. The last thing you want is for them to get going without knowing how things work in your organization or how exactly their responsibilities are going to fit into what your team does.
There are several elements that you should consider when creating this process:
Documented checklist – A documented checklist will help ensure that each new vendor has completed all required steps according to your written processes and industry standards.
Training plan – All vendors should receive training on how to do business with your company from members of your accounts payable team during the onboarding process. This helps ensure a positive experience for both you and your vendor.
Communication plan – It’s important to have clear communication between yourself and vendors so they can ask questions or make requests if they need clarification on anything, which will help avoid misunderstandings down the road.
Review process – A review process is also required before a vendor begins work as part of their orientation with your company.
All in all, it is important to ensure that the vendor understands how things work in your organization by creating an onboarding process for them. This will ensure they are well prepared and can hit the ground running.
Have a centralized system in place for vendor management
It’s important to have a centralized system in place for vendor management. You can save time, reduce costs, and improve efficiency by centralizing your data and automating the necessary processes.
A number of benefits are associated with using a vendor management system (VMS). These include:
It provides visibility into all aspects of each deal, allowing you to track progress through stages such as creating quotes or contracts, pricing out work orders, etc. This allows vendors to manage their own activities effectively as well as keep clients informed on what’s happening at any given moment in time.
The VMS should allow users to create new quote templates quickly without having to start from scratch each time they want one made up. It should also be able to easily import existing templates from previous quotations so that there isn’t wasted time trying out different layouts (which could happen if the user had no previous experience with making these documents).
If a company has multiple locations around the world, it makes managing vendors easier for everyone involved and reduces confusion when working together remotely.
It allows you to track all of your vendors’ information in one place, including contact details, current projects being worked on, and more. This will help streamline communications between departments as well as make it easier for management to keep tabs on what each vendor is doing and what they’ve completed. The VMS should be able to handle multiple projects at once so that if a team member needs assistance with something related to their workload they don’t have to wait until someone else is available.
Choose the right technology solutions.
One of the best ways to ensure that your vendor can deliver the right technology solutions is by choosing a vendor that can offer a complete solution. This means they should be able to help you with all aspects of supply chain management, including:
Planning and forecasting
Procurement (purchasing)
Inventory management and control
Distribution, warehousing, transportation, and logistics services
The more comprehensive their offering is, the less likely it will be that they’ll need to outsource any part of the process.
Secondly, it’s important that the vendor you choose offers a solution that can be tailored and customized to your needs. By doing so, they’ll be able to provide you with a solution that is right for your business and fits within your budget.
Finally, to ensure you’re choosing a vendor that can offer a solution that is right for your team and organization, it’s important to ask them about their customer service policies. It’s also important to consider what will happen if your vendor doesn’t deliver on their promises or fails to meet your expectations.
Create a communication program
An important step in managing your vendor is establishing a communication program. You must regularly communicate with your vendors and ensure that the communication is easy for the vendor and for you, secure, reliable, and easy to maintain. Many tools available today make it easy for companies to interact with their vendors.
One of the biggest challenges in managing a vendor is knowing what information you need from them at different stages of the process. If a vendor doesn’t provide this information on time or there is a delay, then it can cause delays further down the line as work continues on other parts of an order while waiting for missing information from vendors.
Last but not least, it’s important to use a secure and reliable tool. If you doubt whether your information is safe, then you should find another solution. The last thing you want is to have your data compromised because someone hacked into the system.
Make sure you have a risk management program in place
Risk management is crucial to the success of any business, and it’s important that you have a solid risk management program in place.
First, let’s define “risk.” Risk is defined as “the possibility of loss or injury.”
So, when we talk about risk management, we are talking about minimizing and/or mitigating the effects of potentially negative situations or events.
There are many steps you can take as a vendor manager that will help reduce your company’s exposure to risk:
Perform background checks on vendors before doing business with them
Make sure all agreements between vendors and your company have clear terms defining expectations from both parties
Conduct regular audits of your vendors’ work performance (e.g., attending meetings)
If one of your vendors is performing poorly or is not meeting their agreed-upon goals, you should immediately terminate the relationship with them. If you do not have a risk management program in place, then deciding on this might be more difficult for you than it would be otherwise.
A risk management program is essentially an organized, structured system of processes and procedures that are designed to prevent, identify, and mitigate the impact of potential threats. It should be implemented in every industry as well as at all levels within each industry.
In order for a risk management program to be effective, it must include:
Establishing clear goals and objectives
Identifying potential threats
Developing strategies for managing those threats
Prioritizing mitigation efforts
Implementing corrective actions
Tracking progress with regular reporting systems
Evaluating effectiveness at achieving stated goals
In short, vendors should be evaluated based on how well they meet their contractual obligations while also complying with any applicable laws and regulations.
Review vendor performance and contractor compliance.
Review vendor performance and contractor compliance. Most companies will have a standard set of criteria that they use to measure vendor performance. For example, you might evaluate your vendors based on the following:
Their ability to meet deadlines
Their ability to adhere to your requirements or specifications
How cost-effective they are compared to other vendors
You can use this information to decide which vendors you should work with and whether or not you need to make changes. You may also want to review your contracts with each vendor to ensure that they are still working as originally intended or if any changes need to be made. This process should take place regularly in order for you to stay current with how your vendors are performing and what changes need to be made.
If you know how to review vendor performance and contractor compliance, you’ll be able to ask the right questions when you are evaluating your vendors. This will help ensure that the companies you work with are meeting your needs and providing quality service at an affordable price.
Conclusion
Now you know how vendor management works, and it’s time to put it into action. The first steps are always the hardest, but with this information at your fingertips, you should have no problem getting started. If you have any questions about the process or need help implementing it in your business, don’t hesitate to reach out! We’re here for all of our clients, whether they’re just starting out or have been around for years.
In today’s fast-paced environment, companies are using automation to reduce costs and increase efficiency. Automation is a tool that can help organizations improve the way they do business. It can also be used to streamline processes and increase employee productivity.
You’re probably wondering if you can implement AP automation successfully.
The answer is yes, but it’s not going to be easy. Automating AP processes is a complex task that requires a strong understanding of the underlying business processes and technology at play in your organization.
Automating your AP processes is one of the most important things you can do as a business owner. Automating your AP processes means saving time and resources, which means freeing up your team to focus on other, higher-value tasks.
In this guide, we’ll cover everything from assessing your current processes to developing a plan for moving forward. We’ll also go over how to implement the automation solution and what to expect once it’s in place.
Perform a Detailed Assessment of Your Needs
As you begin planning for AP automation, it is important to clearly evaluate your requirements. This will provide you with a clear picture of where your organization currently stands in terms of the accounts payable department and enable you to better understand where it needs to go.
The next step in any successful implementation is understanding exactly how things are done today. Are there any bottlenecks or issues that could be improved upon? What is working well? How often are problems encountered? If there have been changes recently, do they affect key elements (such as staffing levels), or are they just cosmetic updates that don’t impact functionality?
Perform a thorough audit by reviewing all documents related to current processes before conducting interviews with employees involved in these processes from start to finish (including those outside IT). This will help ensure that any gaps between what’s happening now and what should happen next are discovered early on so they can be addressed appropriately during the development/implementation phases.
Prepare for the transformation
Before you begin, it’s important to prepare for the transformation. The right preparation can help ensure that your project is a success.
Create a project team
It’s important to establish a strong, knowledgeable, and cohesive project team who will be responsible for transforming your organization’s AP processes. This team should include all stakeholders involved in the AP process—from accounting and finance to tax and auditing, as well as IT leaders from both finance and operations departments (if appropriate).
Create a governance structure
If you decide that implementing automation is something worth pursuing, it’s time to create an effective governance structure for your initiative. An effective governance structure should be clearly defined with roles and responsibilities outlined so that there are no misunderstandings about who does what.
Conduct a cost-benefit analysis.
At the beginning your organization should conduct a cost-benefit analysis. You need to know how much time and money you will be able to save with AP automation, as well as how it will impact your company. For example, if you are able to reduce the time employees spend on manual data entry by 50% after implementing AP automation, then this means that they will have more free time during their day. That time could be spent doing other things like building relationships with customers or managing vendors.
Once you have calculated what your savings will be after implementing AP automation, you need to determine how much it will cost to implement the technology. The cost of implementing AP automation can vary based on many factors, such as how many users need access and how many documents will be processed.
You also need to consider the cost of not implementing AP automation. Think about how much time you spend on manual data entry each year and how that impacts your business. Once you have calculated the costs associated with implementing AP automation, you can determine its ROI (Return on Investment). You can calculate the ROI by dividing your savings after implementing AP automation by the cost of implementing it.
Prepare a Plan for Implementation
To successfully implement an AP automation system, you will need to have a plan for its implementation. This plan should include the following:
How to transition from the old system (if any) to the new one.
How you will train your employees on how to use the new system, as well as other training required during implementation.
An effective way of communicating with all stakeholders throughout the implementation process and after it is complete.
AP automation is not a project that can be rushed. It requires careful planning and preparation to ensure that your system is implemented successfully. While there are many factors to consider, the most important thing you should do before starting any implementation process is to set clear goals for what you want out of it.
You will also need to plan for how you are going to train your employees on how to use the new system.
Understand Barriers to Implementation
There are many barriers to AP automation, but the most common ones include:
Cost. While you may not need a large budget to get started with AP automation, it can still be expensive if you choose an expensive system. It’s also important to keep in mind that some of the tools used in AP automation require more training than others. This can add costs as well as time spent learning how to use them.
Lack of knowledge and resources within your company. If there isn’t anyone on staff who knows how to set up a new software package or integrate new technology into existing systems, then implementing an automated process will be much more difficult for everyone involved—including yourself!
Lack of time. Implementing an AP automation system can take months, from beginning to end. If you don’t have the time to get things done, then it may not be worth trying at all—especially if it means sacrificing other parts of your business or personal life.
Lack of motivation. If you’re not motivated to implement an automated process, then it probably won’t happen. Lack of support from management. AP automation will require some degree of buy-in from your boss or department manager, so make sure they understand what’s at stake before committing to any changes.
These are just a few of the most common barriers to implementing AP automation. While each of them requires individual attention, there are also some general solutions that can help you move forward.
Cost: While implementing an automated process can be expensive. It doesn’t have to break the bank. There are many affordable options available that will still get things done while saving you money in the long term.
Consider Your Budget
Next, consider your budget. This is where we talk about the cost of AP automation software and what features are included in that price tag. Before you buy it, find out if there is a free trial available so you can test the product in your own environment and make sure it fits your needs.
How much can you afford to spend on AP automation?
What other IT projects are you currently working on?
Are there any long-term costs associated with this purchase? (for example, maintenance fees or additional hardware needed to run the software)
Automating your AP workflow can save you time and money, but it can also be a big investment. Consider how much you are willing to spend on AP automation, as well as how much you can afford to spend. To find out what features are included in your price tag, contact vendor support or look at their website. Each vendor may have different features available depending on the package purchased.
Plan a Training Program
Now that you’ve done all the prep work and have chosen a new AP automation system, it’s time to make sure your staff is ready for the change. You can do this in several ways:
Make sure your staff understands what the new system will mean for them and how it will affect their work. Let them know of any changes in workflow or reporting requirements, as well as any benefits they may receive from the new software.
Train staff on how to use the new system if necessary (if there’s no training program available). If there is a training program available, consider incorporating this into your training plan as well.
The new system should be easy enough to learn and use so that the average person can get up and running with minimal help. But remember: Your employees are not average people! They’re special snowflakes who need extra attention when learning how to do things, so make sure they’re getting what they need from you as their manager.
Even the most automated accounts payable department will see some human error. You can help minimize this risk by training your staff on how to use the new system, as well as providing them with support when needed.
Testing AP Software
After you have implemented the software, you need to test it. Testing is essential to ensure that the software is working correctly and that your team is able to use it easily. There are several different types of testing:
Test in a lab environment: Before going live with the software, try it out in a lab environment, which gives you the opportunity to make any last-minute adjustments before rolling out changes.
Test with real data: Once all bugs have been squashed and training has been completed, move on to testing with real data from actual accounts. This will help uncover any remaining issues or bugs in your system before they affect your users’ ability to do their jobs effectively.
Test with real users: Give each user access so they can test their own abilities within the new system—you may be surprised by their feedback! If there are any bugs remaining after this round of testing, work them out before moving further.
Test transactions: The best way for AP departments (not just developers) to know if something isn’t working correctly in the new automated system is when they actually go through a broad array of transactions that represent their normal daily routine.
Conclusion
We’ve seen how the implementation of automated processes can benefit your business. But before you jump headfirst into AP automation, it’s important to do some research and decide if this is the right move for you. Some companies may find that the cost-benefit analysis doesn’t favor an all-out implementation, while others might have a better time implementing part of their workflow through automation rather than starting from scratch on every process. Regardless of your decision, we hope this guide has helped shed some light on what goes into implementing a successful AP automation strategy.
