This might seem to be an oxymoron because, as a general rule, increasing compliance with best practice involves more time, more resources and as a result more cost for the business that implements it. This is the primary reason that every managing director (MD) will shudder when the word compliance is used by finance or their accountants and that makes it a very poor way to try to open a conversation.
However, the opening statement is not only true, but the level of productivity gains that deliver a compliance best practice accounts payable (AP) function are between 65% and 90% of all the work for every current accounts payable team using a manual paper-based process.
Whilst AP has resided at the very bottom of the priority list for most businesses, that is about to change as the business benefits are simply too great to be ignored.
When you combine digital invoice capture and purchase invoice and approval automation together with artificial intelligence (AI) and machine learning, not only do you deliver a level of best practice compliance diligence that is commercially unachievable from a manual process, you also remove all the labor that adds no value to business and between 60% and 80% of the repetitive “knowledge work” in coding invoices and selecting the correct approval process.
At the same time, you also make the exact status of every invoice available to everyone that needs to know and by default, the account status of your key suppliers to ensure continued supply. Then there is the additional benefit of maintaining a real-time cash requirement report from the moment the invoice is received.
By extending the functionality of every accounting or ERP application, irrespective of whether or is cloud or on-premise, with the ability to go live in just an hour or two, at a price point that is utterly compelling, our recommendation is you open the conversation with the MD’s of your clients and talk about the benefits of automation to them, their senior management team and the finance function.
The reality is that it is the adoption of automated compliance best practice that saves your client money, deliver far better real-time financial information on cash flow, aid the growth of supplier credit accounts and the cashflow benefits they bring, whilst substantially reducing the risk of fraud.
If this is a conversation you think would benefit your business or your clients’ business and you decide to contact the MD to start a dialog, we recommend that you only drop “compliance best practice” into the conversation at the very end, as a useful “tick in the box” benefit that they no longer need to worry about.