Introduction:
We all know about how the Workday files. Workday is done for the payable department of accounts, manually coding invoices after spending hours correcting the errors and chasing down the approvers. Here, very little time is spent focusing on the expectations and goals that can directly impact the future finance of your company.
Why are many businesses reluctant to implement cost-cutting, time-saving AP automation? Some of the common answers are:
- There is no budgetary spending for AP automation.
- What’s not broken? Then why fix it? The present, proven processes are working fine.
- There is no time to learn and implement the new solution.
- There is not enough volume in justifying the AP automation. The ROI is very low.
Despite all of the above reasons, automation is still here to stay. And here is to save the day. Manual AP automation processes save finance departments money and time, improving strategies for ease, freeing them in analyzing, and additional cost savings. We have come to the rescue by finding the top drains on the AP Workday and how the AP automation could be the hero of the finance department.
1. Files and Paper are Everywhere: Keeping track of every account payable process detail is a daunting task and can result in manual mistakes and lost files. Without having the payable process of the centralized accounts, it’s not difficult to lose the payment track approval statuses, due dates, and vendor contracts. Often, businesses waste many hours sorting via numerous transactions and files in solving that single problem.
AP automation is a cloud-based solution that can integrate helping the payable process of streamline accountants with the accounting systems by removing paper and manual tasks. With automation, AP staff and departmental approvers have 24/7 access and flexibility to the payment information and invoices anywhere in the internet connection. There is no need to spend hours and no headaches from recovering all the corrupted files and doing the repeated work when the user forgets to click the save button. Recovery, security, and backup procedures are established for storing all the information or data, such that there is no more panicking.
Integrating an AP automation solution with Dynamics GP provides businesses with some flexibility for the process of payment. The users can approve the invoices automatically and electronically send AP transactions to the accounting system.
Also, businesses can execute the check runs in the Dynamic GP, and AvidXchange will send the approved payments via a printer driver. Payments will be sent automatically and safely to save the payment processing time.
2. Loss of visibility and control: To have control over the budget, the finance departments must know how much they are spending without any surprises. Due to a lack of visibility into the budget, cash flow can pose a challenge in a typical environment. CFOs must require insight and clarity into finances in assessing the threats of future finance and growth opportunities.
Controllers and CFOs have visibility into the invoice status with the AP automation and payments anytime and anywhere. This flexibility offers increased control over the cash flow by giving them the power to make more informed payments.
Keeping the details track in a single hub gives the finance department the finances without guessing. It’s very easy to pinpoint the inefficient spending, prepare for audits, and manage the reconciliation. Take an example here: Automation allows the customers to pull the aging reports for easy reconciliation with the GL accounts.
For a streamlined and simple Workflow, it is essential to control the payment process at the beginning level. After the invoices are entered into the invoice management system, the data or information automatically routes the approvers. Besides, the invoices are approved then the payments are processed. The good news is your Dynamic GP and AP solution track all of the records. Any distributions can be coded on the invoices and brought into the Dynamics GP with the invoice image. Throughout the automated payment process, the Dynamics GP remains the system of all the records to keep control of the transactions.
3. Paper-Based Processes are a Problem: Paper-based processes are referred to as a pain point for the department of Accounts Payable. Managing invoices and paper checks is proven to drive up costs, time, and risks. Data breaches, fraud, and human errors can cost the organization many dollars. A recent AFP study has indicated that 75% of the companies that primarily use paper checks were fraud victims.
In order to know the true cost of the paper-based processes, add up the money and time it takes to process manually with the ePayments. As per the reports of PYMNTS, processing one paper can cost around $10 and often results in late payments. By implementing the AP automated solution, the cost of the paper is cut completely. Between storage, labor costs, and check finance, printing departments spend much more processing the payments than analyzing the spending.
The automated AP process decreases the entry of manual errors and duplicate payments while ensuring the internal rules and compliance are met for each payment. Rather than spending time scanning invoices, opening malls, and routing invoices manually via AvidXchange, interoffice mail takes care of the scanning process. It fully presents the indexed invoices in the portal. Customers can often receive approval notifications via email or log simply in every day. They are not required to push the paper around the office.
4. Master Vendor Files are known as Mess: Maintaining the compliance and contact manually, the details of the master vendor files are overwhelming, but an accurate and updated master vendor file results in some compliance concerns. During the tax season preparation and audits, the AP automation can make it very easy to check in W9s, vendor validation, and TINs without combing via the forms of outdated paper and files that may have entry errors.
The Dynamics GP users can review the queue of exceptions in fixing the errors even before executing the payments. It identifies the errors quickly, and includes mismatched vendors. “PO Not Found,” and “No Vendor Found.”
5. There’s not enough data in making critical decisions: Making the decisions that can impact the company’s financial future is very tough. Decision-makers require significant data to feel very confident that they are making the best investments and moves. Gathering the information that can date back the years can be very time-consuming when everything is not in a single spot. Businesses that are using AP automation have access to rich remittance information or data. All the invoice data, payment details, and purchase orders are available without losing a single detail.
Conclusion:
Everyone is looking for easy ways to come out of the problems and pain of paper processes. If you want to learn more about Workday, feel free to contact Gologica or call 8296960414.