The technology and the roadmap to build a best-in-class AP department are there for the taking.
While approximately 20% of companies rise to the top of any industry, the other 80% often struggle to compete. Known as the Pareto principle or the 80/20 rule, the idea that 80% of effects come from 20% of causes shows up in many areas of life.
The good news for Accounts Payable departments is that it’s possible to become part of the top 20% considered best-in-class with a little focused effort. The technology and the roadmap are there for the taking if you’re willing to embrace change and adopt an innovative mindset.
Research Proves the Value of a Best-in-Class Approach to Invoices and Payments
Research from William Blair makes it clear that best-in-class enterprises use financial technologies like eInvoicing, dynamic discounting, and automation to lower invoice processing costs and timeframes far more than their competitors.
According to the report—B2B Payments: Substantial Long-Term Global Opportunity Gaining Momentum—while cutting costs is the primary driver of the technology, “other benefits include increased transparency of data/information management, lower late payments, faster approval times, improved cash flow, fewer errors, improved vendor terms, enhanced control, scalability, greater working capital efficiency, labor efficiency, flexibility, and security.”
Stop Leaving Value on the Table
When it comes to AP, the vast majority of businesses are leaving value on the table by sticking with labor-intensive, time-consuming, and error-prone methods.
As the William Blair report points out, these methods drive up the costs of completing purchase orders and processing invoices. AP professionals waste too much energy and effort on nonpayment functions, including “payment requisition (obtaining permission to pay), ordering, receiving, reconciliation, error handling, and invoicing—most of which can be streamlined through technology.”
Become a Best-in-Class AP Department Today
If you want to bring the cost of processing your invoices down from around $20 to $2, if you want to shrink your invoice processing down from about two weeks to about two days, and if you want to get nearly 100% of your invoices paid on time, it’s time to take a best-in-class approach to your AP activities.
Partner with the experts at Direct Commerce and you’ll be amazed at how much time, money, and hassle you’ll save. To learn more, email firstname.lastname@example.org or call 415-288-9700 and we’ll arrange a free consultation or demo.