Part one of this blog (10 APIA Benefits: Part One) discussed the following five benefits of accounts payable invoice automation (APIA):
- APIA Eliminates Non-PO Invoice Pain
- APIA Doubles Accounts Payable Productivity and Speeds Cycle Times
- APIA Equips you to Scale Faster
- APIA Makes Closing the Books Faster and Easier
- APIA Reduces Fraud
With APIA spending set to more than double over the next five years, the benefits don’t stop there. Read part two below to find out what else APIA can offer your business.
6. APIA Increases Cash Flexibility
APIA increases cash flexibility by giving your organization more control over the payment process and visibility into financial commitments. There are three core factors here:
- The ability to process an invoice sooner – for example with early discounts – provides an opportunity to improve working capital.
- Make cash forecasting simple by providing visibility into how much money needs to go out and when.
- Control when things get paid.
7. APIA Improves Supplier Relationships
Supplier relationships are delicate. Poor communication, order inaccuracies and late payments can cause them to break.
Suppliers that don’t get paid on-time will also be the last to co-innovate. This turns a potentially strategic relationship tactical. On the other hand, paying suppliers early is a great way to strengthen the relationship, reduce risk, invest in co-innovation and take advantage of discounts.
Operational efficiency also matters to supplier relationships. Everybody wants everything to be done quickly, easily and as affordably as possible. Everyone also wants to be kept in the know. APIA helps make both a reality. AP automation gives suppliers visibility into the process. Instead of calling and emailing to learn about payment status (this accounts for ~25% of AP’s time), suppliers can directly access that information themselves.
8. APIA Alleviates Global Payment Complexity
Regulations change all the time. Different country-specific invoice templates, currencies, tax and business rules add complexity to the accounts payable process. Few organizations have internal experts to manage these variances or track and implement the changes.
Moving forward, more countries will be adopting real-time clearance (invoices need to be cleared and verified by the buyer through a tax authority) to ensure accurate tax collections. Companies need to be ready for the rapidly evolving changes that impact country-specific requirements.
APIA solutions are built to manage global invoice formats and standards automatically by ensuring country invoices are cleared through tax authorities and verified by the buyers while maintaining the proper rules for archiving, integrity and origin.
9. APIA Reduces Your Invoice Processing Costs
Ask yourself: How much time and money do you spend manually processing vendor invoices each month? If you’ve never calculated it, check out these numbers:
- Ardent Partners reports the average cost to process a single invoice is $10.89
- Let’s use the earlier example of the business that processes 40,000 invoices per year
- The total invoicing costs for that business: $435,000-plus annually
On average, APIA solutions cut invoice processing costs by up to 80%. For this business, that’s a potential savings of nearly $350,000.
10. APIA Makes Your Life Easier
The benefits of APIA are numerous and substantial. But there’s another win we haven’t touched on yet: APIA makes your life easier!
Deploying APIA technology eliminates operational headaches, improves employee satisfaction, reduces workloads and simplifies your day-to-day. See how here: Procurement and AP Leaders: 4 Ways to Make Your Life Easier
Ready to see more? Request a demo of Vroozi’s AP Automation and AI capabilities today.