• Finance

    Why third party accounts payable automation is good for your business.

    Six Sigma and Lean, what do they do and why do companies incorporate these to their operating procedures, work environment and work process?

    This is because they help drive the efficiency of work, they help guide the company and its employees on what are the better ways to do things by giving them the skills to identify, analyze and apply positive output of their observations and inefficiency.This also helps eliminate:

    Waste: by definition this is the unnecessary processes that make’sa process slow and adds cost that can only be identified by further studies. One of the common ones that have “waste” are accounts payable because of the potential number of handoffs that shouldn’t be existent in the first place. This can be identified and can be eliminated by accounts payable automation.

    Stagnation: A company that doesn’t grow is prone to be eliminated by their competition because there is no such thing as a perfect process or a process that continues to succeed over time. This is because of the ever changing market and the more that your company continues to evolve by adjusting thru the market changes it will make your company grow and still be successful from years and years to come. Automation of accounts payable can greatly change all that and can be felt directly by customers too.

    Not striving for greatness: Companies that are contempt on their achievement and doesn’t strive to be more can easily be pounded by their competition.  Where does automation of accounts payable come into all of this? It helps makes a company efficient even if they don’t try that much, it also directly influences the people around it to have a more efficient process by adapting to change and eliminate the tasking and excess work. So if your company doesn’t drive for greatness yet then let it start by automating everything!

    Unproductivity: When you hire a lot of people doing the same task, chances are if the tasks are done they no longer have anything to do. Your people are paid when they work, if they don’t work because they no longer have anything to work on, this makes you overpaying your people and if you don’t have any tasks to make them productive the whole day you are bound to lose money over this. With the automation of accounts payable where most of the waste comes from it gives you the capability to see your waste and eliminate it.

    Over budgeting: Over budgeting is the lack of foresight or the lack of risk assessment in investing on products, services and people. Automation of accounts payable may not be directed to this but the fact that it’s automated helps you with your budget by having a system that is much cheaper, that works and efficient.

    Over staffing: This is the reason why companies should try automation in the first place. Because the problem for most companies is overstaffing,but they don’t even have a clue that they actually are overstaffed. Not until they are offered to automate their process like accounts payable for example. When they do risk analysis that will be the time that they will realize they are indeed overstaffed. The solution? Automation!