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The Art of Automating Invoices: Knowing When to Make the Switch

22nd May 2024
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Kefron provides a range of information management solutions including Document Scanning, Accounts...
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Over the past decade, the financial software landscape has significantly transformed, with over 70% of accounts payable (AP) departments adopting invoice automation software. However, only 9% have fully automated their AP processes. Deciding whether to automate invoices requires careful consideration of various factors. In this summary, we outline the key points from our full article to help you determine the right time to switch to invoice automation software and highlight the most important considerations.

Reasons Invoice Automation May Not Be Suitable:

Invoice Volumes: Automation may not be justified if a company processes fewer than 500 invoices monthly, though potential benefits like reduced errors and improved supplier relations should be considered.

Cost Concerns: Many businesses struggle to determine the costs of their current AP processes, making it crucial to analyze the ROI of automation.

Low Priority: Competing departmental priorities can divert resources from automation projects.

Resistance to Change: Fear of new technology can hinder progress. Involving end users early can mitigate resistance.

Limited IT Resources: Concerns about the need for IT expertise can be addressed by vendors providing necessary resources and training.

Security & Reliability Doubts: Ensuring software security and reliability is vital in the face of increasing cyber threats.

Adoption Time & Training: Ensuring vendor support and evaluating the time required for system adoption and training is crucial.

Change Events Leading to Automation:

Technological Advancements: Keeping up with technology is essential for maintaining a competitive edge.

Legacy Systems: Replacing outdated systems can enhance efficiency and adaptability.

Changing ERP Systems: Integrating invoice automation with new ERP systems ensures a cohesive financial ecosystem.

Growth/Acquisition: Standardizing processes during growth or acquisition helps manage increased workloads and maintain efficiency.

Global Change: Adapting to global events like pandemics or geopolitical conflicts requires flexible and secure remote work solutions.

Legislation Changes: Proactive adjustments to comply with evolving regulations ensure seamless transitions.

Staff Challenges: Automation reduces manual tasks, improving productivity, job satisfaction, and employee retention.

Selecting an Invoice Automation Partner:

In adherence to the insightful advice that suggests initiating automating invoices when monthly invoice processing surpasses the 500 mark, the importance of thorough consideration becomes paramount. In the vast landscape of over 70 invoice automation providers, making an informed decision necessitates diligent research, ensuring alignment with your unique business needs. Evaluating solutions based on your organisation’s individual needs is a must:

Company’s Needs: Understanding specific requirements and involving stakeholders is crucial.

Return on Investment (ROI): Calculating ROI involves understanding the cost of manual processes and potential savings.

Integration Capabilities: Ensuring seamless integration with existing systems avoids workflow disruptions.

Security & Reliability: Prioritizing robust security measures and compliance with data protection laws is essential.

Experience & Support: Choosing experienced vendors offering comprehensive training and support ensures successful implementation.

Making the switch to automating invoices is a strategic decision that requires a thorough understanding of your organisation’s unique needs and challenges. By evaluating these considerations, businesses can confidently choose a solution that aligns with their objectives. For detailed insights, consulting an invoice automation specialist is recommended.

Read the full article on our website.