What Are The Challenges Faced By Organizations Accounts Payable...

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What Are The Challenges Faced By Organizations Accounts Payable More Effective

CFO Tech Outlook | Monday, August 01, 2022

Organizations are rapidly using Accounts Payable Automation to assist their employees in transitioning from laborious, repetitive, and time-consuming duties to higher cognitive work.

Fremont, CA: Across industries, substantial time is spent on manual, labor-intensive accounts payable operations. For example, according to one study, the time it takes to process an invoice from receipt to payment is between 4 and 16 days. The Accounts Payable Team is required to do up to 76 percent of this procedure manually.

Despite firms spending substantial effort and money on new technology, accounts payable teams face several challenges that result in high costs and low productivity.

By using RPA, organizations may get strategic value from their Accounts Payable employees, reduce transaction costs, and drastically reduce errors.

The traditional method of process engineering

Many businesses have invested significantly in process re-engineering by utilizing technology such as ERP, OCR, EDI document management, and e-invoices. However, the cost and administrative overheads of accounts payable pose considerable obstacles.

Here are several obstacles to achieving accounts payable practical and error-free.

In non-standard billing, invoices are sent as PDF attachments through email or couriered as physical copies in most businesses. The structure of these invoices is inconsistent, and manual processing becomes laborious. To standardize these bills, the PO must match the ERP, and the AP team must handle a variety of difficulties.

Inadequate organized information

Manually converting data from numerous invoice forms into the company's authorized or standardized format is time-consuming and error-prone. Moreover, the procedure gets increasingly difficult and time-consuming as these invoices increase.

Inconsistencies and authorizations

These manual duties frequently entail the resolution of conflicts and mistakes. Suppliers often submit multiple bills, adding to the redundancy. Businesses with many sites risk having bills paid by various locations. Duplicate payments can have a detrimental impact on cash flow.

Keeping records

Maintaining paper records can significantly increase a company's labor expenses when the firm builds up its activities. In addition, storing, accessing, and keeping records is time-consuming and labor-intensive.

Traditionally, routine accounts payable procedures do not scale well and are difficult to perform with consistent speed and accuracy. Organizations are rapidly using Accounts Payable Automation to assist their employees in transitioning from laborious, repetitive, and time-consuming duties to higher cognitive work. This shift in capacity enables

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