As we approach Summer, many of us have the beach in mind, whether we’re lucky enough to live near one, or vacation at one. And with the beach and the ocean come surfers. There are as many different types of surfboards as there are people who use them, but for purposes of this blog series we’ll focus on two particular styles: the long board and the short board. And we’ll use the analogy for invoice and payment processing (AP) automation, where there are long term, sustainable benefits and short term positive results.
One of the most compelling opening remarks in this year’s Levvel Research 2019 Payables Insight Report lies in the report’s executive summary, which sets the stage for how a smart AP automation solution like Yooz will benefit companies in the long run:
“One of the most effective ways to improve an organization’s bottom line is to decrease the cost of operations that do not directly contribute to profit, redirecting the freed resources towards strategic, profit-generating initiatives. Automating accounts payable (AP) processes is a perfect example of this opportunity, as it not only reduces the footprint of a high-cost administrative department, but it also creates an opportunity to generate revenue through increased efficiency.”
Like a surfer on a long board made of modern materials such as polyurethane foam and fiberglass, who is much more able to gracefully navigate smaller waves for a longer period of time, finance leaders who have automated their finance workflows are able to more nimbly and strategically navigate important workplace initiatives such as management of working capital, mitigating potential risk, and making more strategic decisions.
According to the Payables report, smart AP automation solutions “are the most versatile and scalable options available today for organizations across revenue segments, business types, and industries because they are increasingly flexible, dynamic, and affordable.”
In the long run, finance leaders are able to go from wondering, “How do we manage this ever-growing pile of invoices?” to asking, “Where do we stand with working capital so we can more accurately forecast cash and manage budgets?” From there, they will dive deeper into strategic game plans for better managing supply chains and finding innovative ways to allocate the cash that has been freed up, such as investing in R&D and new product development. Like the surfer, it’s a beautiful thing to watch.
In Part 2 of this series, we’ll look at some of the benefits that are realized from automating in the short run. Until then, “Hang ten, brah!”