A manual AP process prevents visibility to cash, impacts precise cash forecasting, and poses several cash management challenges. Additionally, it hinders a timely and accurate financial close since the AP department is never sure of the correct accrual amount and if the liability is stated correctly. Lastly, a manual AP process creates risk since duplicate and erroneous invoices are often processed. These dilemmas emphasize the need for additional internal controls and reviews. If we look at the actual value of time saved in an automated process versus a manual process, it is not just about the ROI but also the hours saved from invoice receipt to financial close.
Learning Objectives:
Determine the actual value of an automated AP process from cash management to the financial close
Identify other challenges that AP automation can address within finance operations