You’ve probably heard this before — automating the accounts payable process is key to enhancing efficiency, avoiding crucial mistakes, and improving relations with a company’s roster of vendors and suppliers.
The obvious benefits that employing Accounts payable automation systems offer prompt many AP teams to look for the best software that will match the needs of their workflow. However, the very task of automating the rather complex AP process is easier said than done.
Read below seven of the most common hurdles encountered by AP teams when migrating from a traditional to a cloud-based AP tool:
Resistance to change
Companies often say that the way their AP operations run is already efficient. Despite the time-consuming manual processes their workflow has, most employees exhibit resistance to change for the simple reason that it will require energy and effort to depart from the conventional things they’ve been doing for (most probably) years already.
Fear of things going “too technological”
Accounts payable automation systems are often feared by veteran/older AP team members who, as mentioned above, have been used to the manual way of processing invoices. The fear of going “too technological” comes into picture as they might be overwhelmed with the digitization of the things they usually do.
Connected to this concern is the fear of their job being taken over by machines, ultimately taking a toll on the way they regard the importance of their positions in the company.
Lack of budget
There are also companies who argue that transitioning to an automated AP system is just too expensive for their financial resources to shoulder. Apart from the integration of the tool itself, the costs incurred in training the employees are another important thing to consider. In a myopic point of view, some people consider the time spent in the whole process as lost opportunities to earn more profit.
Size of company
Apart from lack of budget, firms also say that they are not big enough to automate their AP workflow, saying that they only handle a handful of invoices on a monthly basis. Some company leaders deem it to be too big a project to make things digital if the workload they shoulder is not that cumbersome.
Documents are non-standard
Even after a company decides to employ account payable automation systems, they are still faced with quite a number of challenges — one of which is the lack of document standardization.
With invoices coming in different sizes and formats, one might think that talking to suppliers to follow a certain standard could be the resolve everything. Nonetheless, making them do so might just be a futile act because of lack of finances and/or technical skills.
Lack of information from the suppliers’ side
Related to the previous item, some invoices from suppliers lack certain information that is required before they can enter an automated AP system’s database. This will serve as a challenge to talk over suppliers just to get these details.
Industry reports estimate that around 30 to 45 percent of invoices contain errors. Before digitizing such documents, they should be corrected first by making tons of phone calls and emails to the suppliers/vendors.
Accounts payable automation systems solve a lot of AP process issues that cost your business some money. Check out what Nexus offers and see how our business solutions can save you money/