The value of AP Departments

Undervalued - but not for long


The financial workhorse of most companies—accounts payable—often goes operationally overlooked, not to mention unappreciated.

Don’t make this mistake. Your AP department is certainly operationally critical because every company needs to pay its vendors and suppliers. Behind the predictable transactions is an area that’s ripe for strategic transformation.

Help your department tackle some of its most pressing challenges, and you’ll introduce a new era for AP—one in which the function is no longer a cost center, but is instead a revenue generator and strategic partner.

3 High value opportunities you cant afford to miss EBO page image

Why Automate Your AP?

46% of companies view AP as having some or little value, despite the critical function the department serves.

Source: Ardent Partners, The State of ePayables 2019

important things to note

Two huge challenges facing AP


Challenge #1: Manual processes

A lack of automation in AP may not seem like an inherent challenge for teams with comfortable, well-worn workflows. However, maintaining the status quo actually means you’re neglecting AP best practices your competitors have embraced, thereby suffering productivity losses and hindering your ability to scale as volume increases.

Paper checks, paper invoices, manual data entry, and manual approval routing demand extra work and time that hampers AP efficiency, not to mention introduce fraud risk. What’s worse, these outdated operations prevent your AP team from adding more value and more revenue to the organization. Too much of your team’s time is tied up in manual, error-prone tasks instead of initiatives that drive the business forward.

3 High Value Opportunities Challenge #1 Manual Processes page image
Payment Security PMX Illustration

Challenge #2: Payment Fraud

Your AP team faces a host of challenges to realizing the function’s full potential. And payment fraud is potentially one of the costliest challenges of all.

Your AP department is exceptionally vulnerable to fraud—in fact, 90% of companies view AP as their organization’s most significant fraud risk.*

Scammers send emails, submit fake invoices, and request to update bank account information in hopes of rerouting or receiving fraudulent payments. Too often, AP teams don’t know they’ve paid fraudsters until the real supplier asks about a past due invoice. 

*Source: Strategic Treasurer: Treasury Fraud and Controls Survey 2019

AP teams know there are security risks that need to be handled .

  • 50% of people in corporate roles

    reported seeing an increase in fraud attempts over a three-year period

  • 54% of North American businesses

    have internal monitoring for fraud attempts

  • 74% of large and 55% of small organization

    have multifactor authentication for business payments

Source: 2020 Treasury Fraud and Controls Survey Report

Three intelligent AP opportunities for 2020

The challenges are there, but if you’ve read this far, you’re likely motivated to evangelize change.
By improving your AP operations, you can mitigate fraud and improve your team’s productivity.

BT process & representation 119

1) Prioritize automation

Finding ways to automate invoice and payment processes is the first step toward improving and elevating your AP operations.

BT personnel 145

2) Reduce fraud risk

Automation and security go hand-in-hand when both are done well.

BT currency & payments 93

3) Generate significant revenue

The net impact is the transformation of AP from a cost center into a revenue generator, increasing value to the larger business.

FIRST OPPORTUNITY

Prioritize automation

Finding ways to automate invoice and payment processes is the first step toward improving and elevating your AP operations. Reducing paper and manual tasks increases efficiency, reduces errors, provides more data about your payments, increases payment speed, and opens up space for AP to focus on higher-level objectives. 

Automated AP teams report that their solutions:

  • Eliminate paper invoices and manual processes
  • Reduce costs, errors, and risks
  • Integrate seamlessly with your ERP
  • Improve visibility and control
  • Maximize straight-through processing
3 High Value Opportunities Move #1 Prioritize Automation page image
3 High Value Opportunities Move #2 Reduce Fraud

SECOND OPPORTUNITY

Reduce fraud risk

Automation and security go hand-in-hand when both are done well. The right software partner provides efficiencies and data to be sure. However, automating processes also provides the chance to limit the risk of fraud.

Automation technology provides additional built-in controls and helps improve your security efforts.

For instance, thanks to advanced pattern recognition capabilities, you can employ risk scoring, which uses custom business rules plus supervised machine learning to help identify unusual and potentially fraudulent invoices and evaluate the security of each payment before you make it. As an added bonus, these technologies can make your vendor onboarding effort both more secure and more efficient.

THIRD OPPORTUNITY

Discover true efficiency

Automation frees AP staff from the chore of manual work, which opens up the opportunity to explore early payment discounts and rebates.

The net impact is the transformation of AP from a cost center into a revenue generator, increasing value to the larger business.

Educational Services Illustration 1170x1170
BT currency & payments 93

Take advantage of discounts

Automated payments make it easier to track and time all of your vendor payments and take advantage of available early payment discounts. The small savings collated over multiple suppliers and months adds up and makes a significant difference.

BT currency & payments 103

Earn rebates on AP spend

By leveraging electronic payments, including virtual card and Automated Clearing House (ACH), you can give your company’s topline an easy and significant boost. Take the time to explore the best rebate program for your company, set up ACH and card payments with vendors, and then watch the rewards roll in over time.

AUTOMATION IS THE AP ANSWER

What are the advantages of AP automation?

AP doesn’t have to remain underappreciated and undervalued just because that’s the way it’s always been. Focus on the areas that challenge your AP team and leverage automation solutions to reduce your payment fraud risk and increase your productivity, cost savings, revenue, and more.

BT security fraud & risk 161 Limit AP fraud attempts and damages

BT data representation 36 Enhance data, analytics and business intelligence

BT legal 107 Improve supplier relationships

BT documentation & messaging 40 Eliminate paper processes, invoices and checks

BT currency & payments 103 Save money on discounts and earn on rebates

BT data representation 22 Allow your team to focus on strategic tasks

845049570670014504957067001 6127351265001 6022092437001 vs
video time: 02:50 video title: Automate Your AP Processes

See for yourself how easy it is to drive greater value from your Accouts Payable operations in this three minute video.

According to the Global Payments Report, 20% of AP teams have zero automation in their processes. Stay ahead of the curve and discover how Paymode-X AP Automation is here to help your business. 

Are you ready to reinvent your AP department and achieve best-in-class performance?

Download our infographic to find out how Paymode-X can help you transform your AP function.

Transform AP with Paymode-X: 6 Benefits for Your Business

Download the guide

Explore Paymode-X

BT data representation 21

Automate AP

Digitize the invoice-to-pay process to realize cost-savings, efficiency gains, enahnced security and new rebate opportunities.

Learn how
BT documentation & messaging 40

Get Paid

Streamline your AR processes with electronic payments, detailed remittance information and valuable accounts receivable tools.

Get started
BT personnel 142

Partner with us

Provide your clients with an innovative business payments solution to deepen customer loyalty and satisfaction.

Partner

GET IN TOUCH

Want to learn more about Paymode-X AP automation solution?

Call us.

Our solution experts are here to help.

+1 (877) 443 6944

Chat with us.

Chat with one of our solution experts. We'll recommend the right product to fit your needs.

Let us help you automate your AP processes.

Tell us a bit about you and your business and we'll get back to you with all the information you need.

curved shaped