According to a recent survey of controllers conducted by the Institute of Finance and Management (IOFM), accounts payable topped the list as the most time-consuming, laborious and paper-intensive finance and administration function — ahead of even payroll, tax and audit. The same controllers stated that accounts payable is a top priority for improvement this year.
It’s no secret that accounts payable automation and e-payments turn labor-intensive manual processes into more efficient ones that ultimately reduce costs. But for most organizations, part of the process to automate accounts payable and embrace e-payments is convincing both C-suite executives and AP staff why now is the time to automate and migrate away from manual processes and check payments.
If your organization hasn’t implemented AP automation and embraced e-payments yet, here are the top 5 benefits you’re missing out on:
- Lower processing costs.
- Improved cash flow.
- Streamlined processes that improve efficiency of invoice payment.
- Improved AP department morale.
- Increased income through rebates based on transaction volume.
The two case studies below illustrate how two organizations implemented AP automation and realized these top 5 benefits, and more.
Case Study: Eastern Shipbuilding
A U.S.-based marine construction and repair company, Eastern Shipbuilding successfully implemented EnCompass®, the automated e-payments platform for accounts payable, in June 2015. Within six months, Eastern Shipbuilding had made over $4 million e-payments on the platform — payments that had previously been made by check. And according to the company’s CFO, electronic card transactions are now Eastern Shipbuilding’s preferred payment method. Read the complete case study here.
Case Study: Navicent Health
Navicent Health is a full-service acute care hospital in the southeastern U.S. In 2010, Navicent Health chose to automate accounts payable with AOC’s EnCompass®, an electronic payment platform that could handle paying millions of dollars in supplier invoices each week. Plus, the hospital wanted a platform that could more efficiently handle the its high invoice volumes and generate income on spending through electronic card transactions. And since implementing the platform, the hospital’s assistant controller said that using EnCompass for e-payments has freed up staff to focus on other AP tasks and projects. Read the complete case study here.
To learn more about the benefits of automating accounts payable and implementing e-payments, check out our white paper in partnership with IOFM, 5 Ways to Increase Performance and Improve Processes in Accounts Payable.