5 advantages to automate your P2P process
Business models, budgets, and processes are constantly evolving and successful finance leaders are adapting through busy growth periods.
P2P automation means working with an ERP or financial software to streamline workflows for the creation and approval of a purchase requisition. Once the approver receives notification in the financial software or ERP that a purchase requisition has been made, they simply review and then approve or deny the request.
Modernizing a P2P process means leveraging technology to streamline the process of a company buying and paying for goods and services. Companies who have successfully modernized their P2P process are experiencing significant benefits such as:
Efficient cash flow management: Most businesses aim to achieve a positive level of cash flow on a consistent basis, and with a procure-to-pay optimized process, the buyer’s cash conversion cycle can flow without hurting their supplier's own cash flow needs.
Streamline and optimize workflow for better process control: With AP Automation, the invoice arrives from the vendor to the automated accounts payable system, and the data is then automatically captured into a centralized system.
Enhanced supply chain management: Improved management of suppliers, and thus improves your relationship with them
Reduced errors and frauds: the risk of human error is dramatically decreased. Examples of human error within an un-automated P2P process include; duplicate invoicing, paying an incorrect amount, or paying the invoice to an incorrect supplier. Also, reduce fraud by improving compliance with regulatory bodies.
Better visibility into business operations: Procure to pay automation provides control and monitoring of the budget in real-time, allowing visibility of funds. Many have no idea where a particular invoice is at any given time, or if a PO was fulfilled and received. By automating the P2P process, a finance leader can manage the entire P2P process on one system with one single interface.
By eliminating paper and manual processing steps with P2P automation, many companies have saved time and money by leveraging online purchase requisitions and goods or services ordered, as well as a standardized approval workflow.
As you could see, automation in your Procure-to-Pay process can identify cost-savings opportunities and have a deep impact on your organization’s success, contact us today and let us add value to your organization’s processes