Key Findings from the IOFM/Yooz
2023 State of Automation in Finance Report
The number one reason (39%) for increasing payables automation is to create an environment that people want to work in.
35% of US finance leaders claim slow processes as the primary reason for their late invoice payments. Lack of automation, validating invoicing, and cash flow management tie for second (28%).
14% of US businesses are still primarily utilizing excel spreadsheets or manual processing to approve their vendor invoices in 2023.
Top 3 problems with manual accounts payable processes and systems:
- Too time-consuming (41%)
- Errors made in the past (31%)
- Processes are too complicated & paying vendors/suppliers late (29%)
Key advantages of Accounts Payable automation for US businesses:
- Increased productivity (34%)
- Improved data accuracy (32%)
- People have more time to spend on value-added activities (26%)
Top 3 objectives to achieve from automating the AP process:
- Reducing errors (32%)
- Cost reduction (31%)
- Better financial controlling & Preventing fraud risk (28%)
This research surveyed the views and opinions of 1,575 global accounting and financial decision-makers
working in organizations with a minimum of 50 employees.
Minimizing the Manual Minutia for AP Departments Supporting Multiple Corporate Locations
Topics Covered in this Article
The manual challenges multi location AP departments face when processing Technology, Telecom and Utility invoices across their corporate locations
Strategies AP teams can use to partner with other departments within their organization to implement automation of the Invoice Lifecycle Management process to collectively solve manual challenges.
Specific examples of how AMI Strategies assists multi location organizations in overcoming these manual challenges.
For multi-location corporations, the Accounts Payable (AP) department plays a pivotal role in maintaining financial fluidity and operational efficiency. However, AP teams, especially for critical technology, telecom, and utility invoices, often find themselves navigating a labyrinth of challenges.
These challenges, stemming from the manual processing of invoices, not only hamper the efficiency of the AP department but also have broader implications on the company’s financial health and vendor relations.
Multi-Location Manual Invoice Challenges
The Herculean Task of Handling High Volume
The first significant hurdle is the sheer volume of invoices. Each corporate location, equipped with essential services like electricity, water, heat, internet, and phone, generates a multitude of invoices from various service providers. This high volume can lead to processing delays and increased error rates. In fact, manual data entry in AP systems carries an error rate of about 1%, which could mean one error in every three utility bills.
The Ripple Effects of Manual Processing
The dependence on the arrival of physical or electronic invoices puts the AP department in a constant state of reaction, limiting their ability to proactively manage expenses. This reactivity is further exacerbated by vendor-driven timelines, often with narrow payment windows that can lead to costly late fees and service disruptions if missed.
Furthermore, the traditional approach of manual data entry and processing is not just time-consuming but also costly. For large corporations dealing with a vast number of invoices, the manual process can significantly drive up operational costs. According to a report by IOFM, companies handling 20,000 or fewer invoices per year manually (the equivalent of 300+ locations worth of technology, telecom, and utility invoices), incur an average cost of around $15.97 per invoice.
Bridging the Gap with Automation
Addressing these challenges requires more than just a solution—it requires an understanding and an empathetic approach towards the unique demands of multi-location organizations. In the upcoming sections, we will delve into how AMI Strategies has pioneered solutions in Utility Invoice Processing Automation, Technology Invoice Processing Automation, and Telecom Invoice Processing Automation. These solutions are not just tools but partners in transforming the daunting task of invoice management into a streamlined, efficient, and error-free process.
Before AMI creates an automated parser for an electricity provider’s invoice format, it takes our team an average of 47 minutes to manually capture all the usage detail at the meter and sub-meter level.
AMI Strategies: Pioneering Automation Solutions for Multi-Location Invoice Management
At the heart of AMI’s innovation is a keen understanding of the complexities faced by multi-location organizations in managing their utility, technology, and telecom invoices. Recognizing the critical need for an efficient, error-free approach, we have developed specialized automation solutions that transform invoice processing from a cumbersome task to an efficient, streamlined operation.
Mastering the Art of Utility Invoice Processing Automation
Utility invoices, with their varying rates, terms, and billing cycles, can be particularly challenging to manage across multiple locations. AMI’s Utility Invoice Processing Automation system is designed to tackle these challenges head-on. By automating the collection, processing, and (optional) payment of these invoices, we ensure that each site’s utility bills are handled efficiently, reducing the risk of late payments and service disruptions.
Internal Partnering: Sustainability
Automating Scope 2 Sustainability Reporting
AP Teams can partner with internal Sustainability stakeholders by automating the push of utility usage metrics across all corporate locations to sustainability frameworks such as Energy Star’s Portfolio Manager and Building Emissions Calculator all in one singular process via AMI’s library of off-the-shelf APIs, eliminating the need for multiple manual redundant processes that capture data from the same invoices.
Read more here.
Streamlining Technology Invoice Processing
For technology invoices, where details, specifications and user allocations are critical, AMI’s Technology Invoice Processing Automation solution shines. This system seamlessly integrates invoices from various technology vendors, ensuring that the billing information is accurate, up-to-date, and ready for processing. We also tie services, such as software licenses, to users, groups, cost centers and GL codes. This automation not only saves time but also significantly reduces the likelihood of overspend as existing but unused purchased services can be recycled to new users.
Internal Partnering: IT Finance
Automating the Bill of IT
AP Teams can partner with internal IT stakeholders by automating the operations around organizational showbacks and chargebacks to encourage cost-conscious behavior and ensuring a more equitable distribution of IT resources.
Read more here.
Revolutionizing Telecom Invoice Management
Similarly, telecom invoices, with their complex billing structures, are adeptly managed by AMI’s Telecom Invoice Processing Automation. This solution simplifies the intricate details of telecom billing, from data usage to service charges, ensuring that each invoice is processed accurately and promptly, once again tying circuits to locations and wireless devices to business users for touchless complex showback/chargeback activities.
Internal Partnering: IT Asset Management
Automating Telecom Service Inventories to the ServiceNow CMDB
AP Teams can partner with internal ServiceNOW stakeholders by automating the creation and continuous updating of telecom service inventories through AMI’s Invoice Lifecycle Automation and AMI’s scoped, certified ServiceNow app, connectNOW.
Read more here.
Transforming Invoice Processing Across the Board
The beauty of AMI’s solutions lies in their ability to be tailored to the specific needs of each organization. Whether it’s handling a high volume of invoices, dealing with complex billing structures, or ensuring timely payments, our automated systems are equipped to handle it all. This not only leads to operational efficiency but also contributes to better financial management and vendor relations.
A Proactive Approach to Invoice Management
By shifting from a reactive to a proactive approach in invoice processing, AMI’s solutions empower organizations to take control of their financial operations. This proactive stance is crucial in managing the complexities that come with multiple locations, allowing organizations to anticipate and address potential issues before they become problematic.
The Tangible Benefits of AMI's Automation in Invoice Processing
The implementation of AMI’s automation solutions in invoice processing brings a host of tangible benefits, marking a significant transformation in both operational efficiency and financial health for corporations.
Enhanced Operational Efficiency
The automation of invoice processing leads to a drastic reduction in manual effort and time spent on handling invoices. This efficiency gain is not just about speed; it’s about the accuracy and consistency that come with automation. With systems adept at handling the complexities of multi-location invoice management, errors are significantly reduced, and processing times are shortened. This operational streamlining allows AP teams to focus on more strategic tasks, thereby enhancing overall productivity.
Improved Financial Health
AMI’s solutions directly impact a company’s financial health. By reducing the time and resources spent on invoice processing, companies can allocate these savings to other critical areas of their business. Additionally, the avoidance of late payment fees and the ability to capitalize on early payment discounts contribute to considerable cost savings. This financial prudence and efficiency are crucial for maintaining a healthy cash flow and strong vendor relationships.
Proactive Financial Management
Beyond the immediate benefits, AMI’s automated solutions enable companies to adopt a more proactive approach to financial management. With better visibility and control over invoice processing, companies can anticipate and address potential financial issues before they escalate. This proactive stance is particularly beneficial for multi-location organizations, where the complexity of operations can often lead to oversight and financial mismanagement.
Advancement of ESG Initiatives
According to the IOFM report, 60% of US finance leaders believe the finance function should have an impact on Environmental, Social, and Governance (ESG) initiatives. Using a certified diverse supplier, like AMI, to assist with Invoice Lifecycle Automation helps organizations attribute large categories of vendor spend as diversity spend through our partnership.
Internal Partnering: Supplier Diversity
AMI Bill Pay Services can assist with ESG Initiatives
- AMI Bill Pay is an optional service that allows AP departments ot consolidate to single weekly payments across hundreds to thousands of vendors.
- International payments are safeguarded by a 90-day currency exchange lock.
- As a woman-owned, WBENC-certified diverse supplier, AMI clients enjoy the benefit of attributing our services and payments towards their diversity spend goals.
The Long-Term Advantages of Partnering with AMI Strategies
The journey of transforming invoice processing through automation is not just a step towards modernization but a strategic move towards sustainable success. Partnering with AMI Strategies for invoice processing automation offers long-term benefits that go beyond immediate operational efficiencies and financial savings.
Building a Foundation for Future Growth
By integrating AMI’s automated solutions, corporations lay the groundwork for scalable growth. As the business expands, especially in the case of multi-location organizations, the systems in place can easily adapt to increasing volumes and complexities. This scalability is crucial for businesses aiming to grow without being bogged down by administrative challenges.
Fostering Strong Vendor Relationships
Timely and accurate invoice processing plays a significant role in maintaining healthy vendor relationships. Automation ensures consistency in payments and transparency in transactions, fostering trust and reliability with vendors. This stability in vendor relationships is invaluable, especially in today’s dynamic business environment.
Enabling Strategic Financial Decisions
With improved visibility and control over financial processes, companies can make more informed decisions. The data and insights provided by AMI’s systems enable businesses to identify cost-saving opportunities, optimize cash flow, and strategically allocate resources for maximum impact.
Embracing a Culture of Innovation
Adopting AMI’s invoice processing automation solutions is a statement of a company’s commitment to innovation. It reflects a forward-thinking approach, embracing new technologies to drive efficiency and effectiveness. This culture of innovation is essential for companies looking to remain competitive and agile in the digital era.
Case Studies: Impact of Automation
- Global Automotive Telecom Spend: AMI Strategies automated the telecom spend management for a global automotive company, leading to significant cost savings and enhanced visibility into telecom expenditures.
- Global Pharma Business: In another instance, AMI Strategies automated invoice workflow for a global pharmaceutical company, streamlining their process and improving accuracy and efficiency in managing technology costs.
Final Thoughts
In times where operational efficiency and financial health are paramount, AMI Strategies stands out as a beacon of innovation and reliability. Our tailored solutions in Utility Invoice Processing Automation, Technology Invoice Processing Automation, and Telecom Invoice Processing Automation are more than just tools—they are partners in your journey towards streamlined operations and financial robustness. Reach out to us today and take the first step towards transforming your invoice processing challenges into opportunities for growth and success.
David Sonenstein - Vice President of Product Strategy
AMI Strategies
With over 20 years in the industry, David helps orchestrate AMI’s vision for vendor hyperautomation. While contributing to AMI’s adoption of automation technologies, system integrations and technology frameworks, his research focuses on enterprise market and technology trends and where automation solutions can help organizations achieve their desired business outcomes. He currently serves on the executive board of the Enterprise Technology Management Association (ETMA) and is an associate of the Technology Business Management (TBM) Council.
