Regardless of how well your AP department is currently performing, it is essential to continuously improve your workflow processes – and the best way to do that is with procure-to-pay automation.
Technology constantly evolves. So it is important to make nimble strategic decisions for your business. From big data analytics to automated data capture to robotic process automation, companies looking to outshine the competition must engage in constant process improvement.
And since it touches all parts of your business, the procure to pay processes that you choose can significantly affect the success of your company.
Choosing an automated and integrated procure-to-pay process is a simple way to optimize productivity and efficiency.
So let’s take a look at the perks of using a procure-to-pay automation system. And then consider how to decide which automatic payment system is right for you.
What Is A Complete Procure-To-Pay Automation Business Solution?
A procure-to-pay (or purchase-to-pay) system is a fully integrated payment system created to support end-to-end purchase and payment processes.
And what used to be a long exhausting manual process of pushing paper and writing checks has been transformed.
Procure to pay automation business solutions are now a sleeker, more effective way of improving your business’s productivity and revenue. A procure-to-pay process ingrates 3 specific areas of the payment process.
The procure-to-pay process includes:
1. Procurement
- Purchase requisition.
- Purchase order.
- The order is purchased.
- Record of goods and services received.
2. Invoicing
- Seller invoices buyer.
- Three-way matching and reconciliation.
- Invoice approval.
- Final invoice review.
3. Automatic Payment
- Payment upon approval workflows.
- Payment issued by accounts payable.
- Accounting records updated.
The goal of any procure-to-pay system is to make purchases and pay for them following best practices.
But every single one of these steps can be automated and integrated!
Advantages of Procure to Pay Automation
By choosing an integrated procure to pay automation solution your company will generally see:
- Improvements in cash flow through electronic transfers.
- Elimination of the likelihood of fraud.
- Improved payment visibility.
- Optimization creating more efficiency and productivity.
- The elimination of human error in the payment process.
- Strategic spending supported by transparent supply chain management.
- Transformation of the purchasing department from a source of minimal savings to a reliable source of added value – and you can even earn a 1% rebate on every invoice you pay using our vCard payment system!
As you can see, there are so many benefits to switching to an automated procure to pay system.
And once implemented, training to your new system will be a snap since so many of the steps are automated. Even better, the the steps that do require human intervention are very hard to do wrong without the system alerting you to the error.
So you’ll never pay an invoice that doesn’t have proper approval again. Never double-pay an invoice. Your automated procure to pay system simply won’t allow it!
Manual procure to pay systems are like a leaky wooden ship – you are constantly worried that the next thing that goes wrong will sink the ship.
But automated procure to pay systems are like a sleek modern self-driving car! You can sit back, relax and let the technology do the work.
And although training efforts will still likely be required with an automated procure to pay system, they won’t be nearly as demanding as learning the ins and outs of a manual process that has grown organically over time.
Discover Which Procure-to-Pay System Is Right For You
Every company has different goals. So it’s important to choose the best procure to pay automation for your desired outcomes.
Below are a few things you should consider when evaluating your options.
What is the state of your current payment process?
If you are unable to measure your current process, it may difficult to know what improvements need to be made.
You can learn how to map your current procure to pay workflow and create a requirements document for automating procure to pay in our article How to Choose an Accounts Payable Automation Software Provider.
What issues are you looking to solve?
Do you need to improve invoice data accuracy or payment accuracy? Trying to improve payment turn around time and even qualify for early payment discounts?
By choosing the correct automated payment system, you should be able to solve it all. Creating a bulleted checklist of your issues first can serve as a guide, before exploring options.
Read What to Look for in Accounts Payable Automation Software and 7 Reasons to Move to Electronic Payment Automation for ideas for your checklist!
Which executives are needed to accomplish this transformation?
Depending on the size of your organization, your procure to pay automation team may be one person. Or it may be the whole finance department.
Whatever the case, identifying and engaging key stakeholders in the process before, during, and after can be a game-changer. Collaboration with your colleagues provides you with the feedback you might never think of.
Also, their involvement in the process can speed up the learning curve once the system is implemented.
What is your budget and timeframe for the research/implementation of a new automatic payment system?
Having a procure to pay automation provider on the same page as your business can drastically improve the process. Look for a business that will take the time to map out a course that fits YOUR needs, timeline and budget – not theirs.
Training and educational content should also be included in the transformation.
These things can shorten your timeframe of implementation, reduce costs, and decrease the learning curve as a whole.
Click Here to Read How to Choose an Accounts Payable Automation Software Provider
At CoreIntegrator, our customers tell us that their favorite thing about our solutions is that they are simple, intuitive and that we have a fierce commitment to making your life at work easier and your people more productive.
Take a look at how we can make your procure to pay process 500 times more efficient:
Procure-To-Pay Automation Drives Your Business to Success
Whether you are looking to digitize a manual procure to pay system or you are unhappy with your current automation solution, take a look at CoreIntegrator’s procure to pay automation solutions.
Saving your company time and money is only a small bit of what an automatic payment process can do for you. By having a complete all in one procure to pay system you will find your records more accessible, less vulnerable to fraud payments and minimum human error.
So gather your team today and discuss what improvements your payment system needs to ensure you rise above the competition.