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Accounts Payable Automation Statistics the Financial Team Should Know

As the financial team plans for 2019, recent accounts payable automation statistics help management make key decisions about accounts payable process improvement options.

As financial teams worldwide face the unique challenges ahead in 2019, it’s an excellent time to review the latest statistics to determine past trends and consider future developments. Accounts payable automation statistics reveal where improvements should be made, what clients expect, and much more. Consider these compelling statistics to help successfully kick off your 2019 accounts payable process improvement efforts.

The Cloud Promises Blue Skies Ahead

Companies around the globe are realizing the many benefits of cloud computing. Pertinent data is securely stored and accessed in the cloud. There are notable advantages of using cloud accounts payable automation, including getting real-time AP updates, collaborating anytime and anywhere, and saving time on invoice approval and other routine tasks. Cloud computing reduces labor costs and relieves the staff from spending endless hours on mundane manual tasks. In fact, companies using 100 percent cloud-based accounting realized a 15 percent year-over-year revenue growth. The cloud promises blue skies ahead for the savvy executives adopting these technologies now.

Time is Money in the AP Department

When it comes to doing business, time is money - and that statement is especially true when it comes to the AP department and automation. Manual processing of invoices and purchases orders takes far longer than using AP automation. And manual processes increase the risk of errors, especially if the staff is tired or distracted. With the implementation of AP automation, total invoices effectively processed increase of as much as 10 percent in one year, per the reports of 39 percent of AP professionals. AP departments that automate invoice capture/workflow and payments save an average of one hour per day. And accounts payable automation can pay for itself within six to eighteen months on average.

Get an Edge on the Competition

One of the best ways, beyond saving time and money, to convince the C-suite to adopt AP automation is to cite statistics proving it gives companies an edge on the competition. Faster, more accurate AP operations improve vendor relations and ensure production is on schedule. More than half of C-level executives in accounts anticipate the development of automated, intelligent accounting systems will have the highest impact over the next three years. Over 80 percent of executives feel AI leads to a competitive advantage and 79 percent believe it boosts productivity. Accounts payable automation helps the C-suite overcome common challenges such as late payments, outdated vendor data, and missed opportunities to save money.

Compare AP Automation Statistics

Comparing accounts payable automation statistics helps companies keep up with the competition and stay ahead of the curve. Medius benchmarks give users data to determine their progress and prowess in the technical arena as compared to other industry professionals. For example, the C-suite can verify the average total AP process time as well as the touchless invoice processing ratio to examine how the organization stacks up against the competition, and make necessary changes to step up the pace. Other financial metrics that AP can provide data include days payable outstanding, open invoice amount, cash requirement, AP closing trends, aging bucket, overdue invoices, invoice source, invoices that can be paid on time, and invoices available for payment in faster than 10 days. The AP department becomes a valuable resource for the C-suite as they access crucial data to develop financial policies for 2019 that help improve cash flow and increase profits.

These updated statistics evidence the relevance of accounts payable automation and how it can benefit the financial team, and the organization at large, in 2019 and beyond. And if the company’s current AP system is not robust enough to give you these insights, 2019 is the perfect time to improve and upgrade to a more powerful AP solution. Use benchmarks, statistics, and trends to make 2019 the most productive and possible year possible, so that you can achieve your professional new year resolutions and realize the benefits of accounts payable process improvement.

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