Accounts payable new year’s resolution – 5 best ways to cut costs
Ready for the new year, Patrick Harbin has published and amazing 50 ways to reduce costs in accounts payable. They say about new year’s resolutions that you should ensure they are achievable so for those that think 50 major change management programs in one year – that’s 1 per week – is a little too much, you might want to consider the first 5 because we think the first 5 are the best 5.
Patrick’s top 5 ways to reduce cost are spot on but we’re going to put our take on them
1) Use e-Invoices. Paper invoices are so 20th century. They rely on manual processes; they require storage and they damage the planet. If you’re serious about cost reduction, this is the starting point.
2) Implement Dynamic Discounting. Paying early may blow a hole in your DPO but when you can get 10-20% return on cash by negotiating discounts in return for early payment, you’re crazy not to look in detail at dynamic discounting.
3) Save Time with Automated Workflow. Autometed workflow allows you to centralize and automate – which is a great link to number 4.
4) Centralize, then automate. Centralize doesn’t have to mean off-shore but it is an important prerequisite for AP automation.
5) Implement Invoice Imaging. Implementing e-invoicing can be an up-hill struggle and if your supplier profile includes many small suppliers, using intelligent data capture to convert unstructured data on paper invoices or invoice images can help you get to 100% electronic invoice