Accounts Payable can be a tedious and time-consuming process. However, AP Automation can greatly alleviate many of it’s pain points. With more and more AP Automation solutions becoming available and as they become more popular, there are growing misconceptions surrounding a few key details.
The 3 misconceptions we describe below are based off of insights we received from our sales team as they guided prospects through the search for AP Automation.
Misconception 1: The Costs Associated with AP Automation are Too High
The first misconception concerns the cost associated with the number of users the business can have in their AP Automation system. Many AP professionals think that their company will have to pay for each individual user that is involved in the AP process, including those who may only need to approve a single invoice or payment. However, with many top automation providers, there are no costs per user or limit on how many users the client can have in the app.
Misconception 2: The Automation Software Will be Too Time-Consuming & Tedious to Implement
The second misconception is that all accounts payable information will have to be manually keyed and transferred between the new software and existing ERP/Accounting System. Due to this misconception, many businesses are hesitant to automate because they feel it will create more work than it alleviates. However, a great AP automation solution has syncing capabilities that allows information and updates to reconcile back and forth with the client’s ERP/Accounting System. The syncing capabilities can be either an automatic or manual, but either way, the business will not have to waste time comparing and correcting information between the two systems.
Misconception 3: AP Automation Payment Solutions Take Away Control Over AP
The third misconception surrounding AP Automation is that businesses think that they will lose control and transparency of when/how they pay their vendors and of their cash flow. Some automation solutions use settlement accounts and other control methods that hold onto the user’s money prior to actually sending the payment to their vendor. However, with a top automation provider, users can schedule payments and have complete visibility into the entire payments process, so they never have to wonder where the money is and when it will be in the hands of the vendor. This also means businesses can optimize their cash flow and use their money more efficiently because they know exactly how much will be available and when at all times.
Unfortunately, misconceptions surrounding AP Automation have swayed finance teams to be hesitant about implementing it. However, once you sift through these misconceptions you can clearly see the value that AP Automation will add to your business, such as saving time and money, increasing efficiency, and better transparency.
Do you have concerns about why AP Automation may not be right for your business? Let’s debunk those misconceptions, today. Contact MineralTree to get started!