Transforming Accounts Payable into a Profit Centre.Press clipping published February 7, 2017
Companies strive for one goal only, to increase their profit. They will try to spend as little as possible whilst generating as much revenue as they can. There are therefore two business models which divide all operations in any business:
• Cost Centres
• Profit Centres
There’s a good question about whether this binary spilt is a true reflection of a business reality or not but with the right set of tools, it is possible to turn an alleged burden (cost centre) into a benefits (profit centre). Once such tool is accounts payable automation in the cloud. This is an area which is historically the last place that a business will look when trying to decrease cost but increase revenue but with Yooz it’s possible.
1. Smarter Financial Decisions.
Accounts payable automation in the cloud improves real-time visibility into the daily accounting operations which will in turn, create financial intelligence. According to the Aberdeen Group’s 2015 A/P-A/R benchmark survey “42% of finance leaders identify automation as a key step to improving overall financial management”.
2. Invoice Process: Higher Volumes Processed Faster
As businesses grow, so do the volume of invoices received. More suppliers, more vendors and therefore more paperwork to handle and unfortunately, this will lead to a reduction in productivity. Thanks to automation, companies can scale their AP functions for less and therefore will stop wasting time and money looking for lost invoices and ultimately cut cycle time from 20-30 days down to just a few days. This will help to avoid late payment penalties and increase early payments discounts.
3. Strengthen Relationship with Vendors
Transforming accounts payable into a digital process with turn accounting into a live network of partners who will thrive when simple, secure and traceable invoices flow freely. This will increase the productively of accounts payable and therefore turn it into a benefit.
Automation doesn’t take people out of the equation but instead gives the accounts payable department a state of the art tool which will allow them to stay on top of the purchasing process, PO matching and allows them to organise everything per purchase, per vendor.
If you would like to read the full article written by Laurent Charpentier – Chief Innovation Officer at Yooz please follow this link: