If it ain’t broke, don’t fix it.
It’s a grammatically incorrect sentence, yet it’s an unwritten rule many leaders in the business world follow.
On some level it makes sense. If something is not causing a problem, there’s no need to waste the time and resources to correct it. While you could argue the merits of that statement, this same ideology undercuts any potential or growth for a specific sector of business.
To underscore this, let’s take a look at accounts payable.
It’s 2019, not 1920, there’s no reason for 43 percent of all companies to rely on manual processes and paper systems to track invoice and spending (that number jumps to 84 percent when talking about small businesses). While some may be comfortable with their outdated system, doing things the hard way is also the expensive way.
Researchers with the Institute of Management & Administration (IOMA) discovered companies employing little to no automation spent almost 250% more per invoice compared to a company who decided to automate their AP departments with a cloud-based solution. Those companies saw a cost of $6.31 per invoice, compared to $15.70 per invoice for those still stuck in the past.
Now that’s if the report is picture perfect, but that’s not always the case. A couple years back, the Global Business Travel Association found that 19% of all expense reports contained an error. In order to fix the report, it would cost a company $52. That’s on top of the $58 price tag to create the original report.
By switching to an automated process companies put the control back into their hands by setting corporate spend policies that will be enforced by the solution. With software powered by state-of-the-art technologies like Optical Character Recognition (OCR) and Artificial Intelligence (AI) these solutions generate a 100% accurate report that eliminates fraud caused by estimates and guesses from the human touch.
Web and mobile solutions with receipt matching and validation technology end the practice of employees hoarding receipts or digging through their car in search of a missing sales slip, instead they can take of a picture, scan or email the receipt to the solution and file a report with just one click. One click has never been so powerful. It turns a 20+ minute process into less than a couple minutes, freeing employees to focus on more pressing matters.
That’s not the only reason employees will support the shift to automation. They’ll also see greater visibility into why their reimbursement is stuck in limbo. Not only do modern solutions allow employees to see where their report is in the approval process at any given time, they also will see a quicker reimbursement, thus lessening the burden of out-of-pocket expenses.
With automation on their side, companies can confidently operate with reliable and streamlined expense data. Removing unnecessary steps, such as printing out documents and manually filling out information, will not only benefit today’s processes but multiply in value as they grow and change.
For a complimentary consultation to determine which of our cloud-based solutions may be best for you, click here, or give us a call at 412-858-1111.