Many AP teams are stuck in the dark ages, which means:
Implementing better practices means that the AP workload is moved away from low-value processing activities into more value-added areas (see diagram, right). This will also increase the AP team’s job satisfaction and be welcomed by budget holders.
Why do we go from an electronic transaction in the supplier’s accounting systems to an old-school paper-based invoice? Surely, we should be able to receive this electronically, in AP-friendly format, from all our major suppliers?
There have been major advances in technology for AP teams. The return on investment of this technology is arguably greater than any other equivalent investment in other service departments within a business. Why then is it common to under-invest in AP technology?
This could be because the AP team is not researching the technologies, or because they are failing to explain the benefits to the CFO or executive team. But there is technology suitable for SMEs and large enterprises that will make them paperless. Here are some steps towards a paperless AP function.