Healthcare organization mergers mean more suppliers, more invoices, more payments and more opportunities for errors. But many organizations are still mired in labor-intensive, manual processes, contributing to inefficiencies and missed opportunities for cash flow improvement.
As the speed and complexity of business increases, accounts payable departments can no longer afford to remain with paper processes. Those that automate have the opportunity for competitive advantage and bringing process improvements that impact the bottom line.
Reduce the time it takes to approve an invoice. Electronic workflow and streamlined processes eliminate bottlenecks and labor-intensive data entry. With more suppliers implementing shorter payment terms, an automated process supports best-practice payment procedures, ensuring reviews and approvals are timely.
Secure early payment discounts. Adding speed to AP processes helps organizations take advantage of discounts or avoid penalties for late payments. With greater agility and visibility, organizations can take advantage of all the discounts it qualifies for and prioritize invoices where there is the greatest financial impact.
Prevent rush checks. Too many rush checks indicate that the payment function isn’t running efficiently. It also increases risk of duplicate payments and fraud and may raise a red flag for compliance auditors that the organization has weak internal controls. An automated process ensures business rules are followed and provides greater transparency into financial processes, helping to identify patterns of rush requests, so organizations can implement a fix for the problem.
Diminish rent for storage facilities. Storing documents electronically eliminates the need for physical storage facilities. Centralizing documentation also improves efficiency, helping managers and associates reduce the time spent searching for information.
Gain more actionable insight. AP automation provides a documented audit trail that facilitates compliance but also provides greater transparency into data so organizations can uncover errors and overpayments. Organizations can use this information to work with suppliers to collect money due or understand spending patterns.
Most Accountable Care Organizations are tasked with reducing administrative costs and doing more with less. AP automation can help strategically manage payments and spending, making it easier to forecast more accurately, increase efficiency and reduce expenses associated with processing invoices.