The Future of Accounts Payable Software: Why Automation Is No Longer Optional

Manual approaches to accounts payable (AP) processes feel like a relic from a previous era in today's digitised world. The maintenance of spreadsheets, paper-based invoicing, and endless approval chains are no longer a match for the demands of present-day schools. With finance teams facing increasing pressures to meet efficiency, compliance and cost control expectations, AP automation is no longer a 'nice to have' but a necessary resource.  

Due to the digital world's complex and fast-paced operations, the future of accounts payable in education institutions will be dominated by those who adapt their existing processes to accommodate these new solutions. In this blog, we'll explore why automation isn't just the next step for AP but the key to operational transformation.  

Why Traditional AP Processes Are Holding You Back  

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It can be easy to conclude that legacy AP processes can still get the job done since invoices mostly end up paid. However, hidden costs and inefficiencies lurk beneath these manual workflows that will eventually become unmanageable.  

Let's examine why sticking with legacy systems might be costing your school more than you initially thought.  

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1. Time-Consuming

‍ As all finance teams know, processing invoices can be incredibly time-consuming. From receiving paper or email invoices, entering data, seeking approvals, and issuing payments, every step in the manual process has the potential to become a bottleneck. These processes can slow the payment cycle and distract your team from focusing on more high-value tasks like financial analysis or supplier relationship management.  

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2. Human Error‍

Manual data entry inevitably leads to the risk of error. A misplaced decimal point, due date, or duplicated payments can create costly errors that impact cash flow and tarnish supplier relationships. Correcting errors like this takes time and adds stress to the already lengthy process.  

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3. Limited Visibility

‍Without automation, gaining an accurate view of your school's financial standing is almost impossible. Data is often siloed across departments, making it challenging to track outstanding payments, manage cash flow, and spot financial risks.  

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4. Non-Compliance and Fraud

‍Adhering to financial regulation standards requires manual processes. Additionally, without suitable safeguards in place, accounts payable departments are often vulnerable to fraud, a rapidly growing risk in the digital world.  

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AP Automation: The Game-Changer  

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Here's where schools can rely on AP automation to solve these problems. Ap automation software digitises and streamlines the entire process from procure to pay. Reducing errors, streamlining approval workflows and enhancing visibility into data for your finance team. The change is not only able to save significant time, and reduce administrative bottlenecks, but it can also unlock an entirely new world of efficiency and strategic insight.  

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1. Faster Invoice Processing

Automated AP solutions eliminate the need for manual data entry and approval delays, allowing your finance team to process invoices in a fraction of the time. Digitised workflows ensure that invoices are directed to the right people of approval with the help of a delegation of authority structure, ensuring on-time payments, ensuring relationships with suppliers, and taking advantage of early payment discounts.  

This was precisely the case for Brisbane Grammar School. After implementing AP automation, they were able to cut invoice processing times by 20 minutes per order and achieve an impressive compliance rate of 100%. They now have over 300 active users who manage 800+ monthly invoices more easily and transparently.  

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2. Real-Time Visibility and Insights  

One of the best benefits of automation is the capability to gain real-time insights into your financial data. A cloud-based accounts payable platform allows your finance team to see real-time information on outstanding payments, cash flow, and pending approvals from anywhere. This visibility encourages better decision-making and helps you manage financial tasks more efficiently.  

Automated accounts payable software also provides an accurate and updated audit trail, reducing the risk of fraud while maintaining compliance with financial regulations. The shift to digitisation means your AP team can spend more time on strategic tasks like budgeting and planning and less time tracking down paperwork.  

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3. Reducing Errors and Mitigating risk

Automation almost eliminates the possibility of human error, such as incorrect data entry or late payments. AP automation systems can pinpoint duplicate invoices, detect anomalies, and ensure that payments are processed correctly and according to your school's requirements. Not only does automation save time, but it reduces risks associated with fraud and regulatory non-compliant practices.  

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4. The Potential of Scalability

As your school inevitably grows in students, staff, and even campuses, so does the volume of invoices. Manually managing rapidly growing workloads is virtually impossible, as it can easily lead to mounting inefficiencies. Accounts payable automation provides the scalability capabilities needed to handle increasing volumes without additional strain on your finance team. This scalability is essential for growing educational institutions to avoid inflating costs.  

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The Cost of Doing Nothing  

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The number one question for schools considering digitising their AP processes is: "What will it cost us?" But an equally important question is: "What is the cost of doing nothing?"  

From missed early payment discounts to the hidden labour costs of data entry and error correction, traditional AP methods are draining resources that could be better spent elsewhere. Over time, the inefficiencies of manual processes add up, ultimately impacting your bottom line.  

Continuing with legacy AP processes isn't just slow or inefficient; it's also expensive. As more schools adopt automation, those who don't face the daunting potential of falling behind. Other education institutions will be able to pay suppliers faster, negotiate better terms, and have more cash in hand to invest in growth opportunities. Schools that stick with outdated processes could be trapped in a cycle of inefficiencies and lost opportunities.  

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The Future of Accounts Payable is Automated — Are You Ready?  

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Accounts payable automation is not just a passing trend; it's the future of finance. As schools continue to digitise their financial operations, AP teams have a unique opportunity to transform from a back-office function to a strategic partner that drives value for the school.  

By embracing automation, you are improving your AP team's processes and laying down the foundation for a more efficient, cost-effective, and future-proof financial operation.  

With the right AP automation solution, you'll unlock a new superpower for your organisation. One that frees up time reduces risk and turns your AP department into a force for innovation and growth.  

Are you ready to step into the future?