Anytime new technology or an innovation with the account payable system is introduced into the market it is followed by myths and misconceptions. This equates to bad press which makes business owners, CFOs, and AP department heads hesitant to upgrade their current AP systems. It is easy to stick to what the department already knows, but sometimes the system used is just very wasteful and inefficient.
Here are the top 6 myths associated with the AP systems that businesses still believe, but have already been debunked:
Myth #1: AP Automation Is Inefficient
People are daunted by the fact that the automated AP system is something new and requires some adjustments to their daily routine. While at first there will be a learning curve every AP department must tackle, it takes a very short time to adjust to the new system. Once the department has adjusted to the automated system, efficiency and productivity will soar higher than before.
Myth #2: AP Automation Will Result In Downsizing
Yes, the computer will do all the encoding and report creation, but that doesn’t mean the AP department will become obsolete. The system will free up more time for the staff to concentrate on other tasks that need their attention.
Myth #3: Loss Of Control
Businesses fear that the automated AP system means they can no longer control the AP process. This is a complete myth because an upgraded system actually allows for more control of the invoice processing. The automated system comes with real-time access to invoices and other important documents which enhances visibility and control.
A CFO can easily put a stop to the invoice process with a click a button when they notice any discrepancies.
Myth #4: Upgrading Is Expensive
Just because the automated account payable system is a new form of technology doesn’t mean they are all expensive. There are several systems that are very affordable and can be customized according to a company’s specific needs and budget constraints.
Myth #5: Small Businesses Do Not Need AP System
As long as you are dealing with vendors, suppliers, and paying monthly bills, your company will benefit from an AP system, no matter how small it may be. As stated before, an automated system doesn’t have to be an expensive system; there is an affordable option that will work perfectly for small businesses who want to upgrade their current AP system.
Myth #6: AP Automation Is Just An Added Cost
Aside from preventing duplicate payments, fraud, and theft AP automation also allows for big savings. The scheduled and timely payments created by the systems can bring in a lot of early payment discounts which all companies appreciate.
AP automation can also lead to a better relationship with vendors and suppliers. Companies who are considered as priority or VIP clients are usually offered better deals than others. It may be a small amount, but it will add up to the company’s savings in the long run.
Don’t listen to these myths because they aren’t true at all. Investing in AP automation is the best thing any CFO or business owner can do for the future success of their company.
Nexus Systems provide an account payable system that can help increase your business process efficiency. We are also known for providing excellent customer service in case you need our help along the way.