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If you find yourself buried under stacks of invoices, with deadlines looming and the constant worry of errors creeping into your financial records, you’re not alone. Many businesses still rely on outdated manual processes for their accounts payable (AP). If you’re unfamiliar, AP involves managing and paying invoices from suppliers or vendors, essential for maintaining cash flow, managing expenses, and nurturing supplier relationships.
In this article, we’ll explore why sticking to manual AP may hinder your business and how adopting automation offers a smarter, more efficient solution.
Pitfalls of traditional AP processes
Time-consuming and error-prone
Manual data entry and paper-based workflows are notorious time-suckers. Each invoice requires painstaking data input, verification, and filing, which not only eats up hours of valuable work time but also increases the likelihood of errors. These errors can range from simple data entry mistakes to more serious issues like duplicate payments or incorrect amounts, leading to skewed financial records and additional time spent on rectification.
We designed Forwardly to lighten your load, potentially saving you up to 5 hours a week. How? By syncing seamlessly with your accounting software and automating reconciliation with a 4-way sync feature. Imagine the relief of fewer manual tasks and more accurate financial records—all thanks to Forwardly.
Payment delays and strained vendor relationships
One of the biggest headaches with manual AP? Payment delays. Human errors and the slow grind of manual processing mean invoices can miss their due dates, leaving vendors frustrated and trust strained. Late business payments aren’t just inconvenient—they can damage relationships and even cost you early payment discounts that boost your bottom line. For businesses watching every penny, these delays can directly impact profitability and cash flow.
With Forwardly, you can send business bill payments instantly in just 60 seconds. Just a simple, one-click accounts payable process that skips the hassle of sharing account details or pre-funding bank accounts. You can hold on to your cash for longer and send the bill payments just at the right time. You keep your vendors happy and your finances flowing smoothly.
Increased risk of fraud and data security breaches
When you rely on manual AP processes, the risk of fraud and data breaches is a big worry. Fraudulent actions, like changing invoices or unauthorized access to financial records, don’t just endanger your money—they also damage your business’s reputation. Recent data from the “2024 AFP Payments Fraud and Control Survey Report” shows a sharp increase in fraud incidents, with 80% of organizations affected, up from 65% in 2022. Checks are especially risky, with 65% of businesses reporting problems with check fraud.
Modern accounts payable solutions often boast certifications like SOC 2 Type 2 and AICPA SOC, which validate their adherence to stringent security standards. These certifications ensure that these solutions meet rigorous criteria for protecting sensitive financial data and maintaining secure operational practices. So, when you’re ready to upgrade, remember—security isn’t just a perk; it’s a must-have for your financial operations.
Impact on the bottom line
Handling accounts payable manually can really hit your wallet. Every invoice processed by hand costs around $15.96. That adds up fast, especially if you’re dealing with hundreds or thousands of invoices each month. These costs aren’t just about paying the bills—they eat into your profits and tie up valuable time that could be spent growing your business.
Now, imagine a medium-sized business that manually processes 1,000 invoices monthly. By switching to automated AP solutions, they could save over $15,000 every month. That’s money they can use to develop new products, launch marketing campaigns, or expand their operations—all of which help their business grow stronger and more competitive in the market.
With Forwardly, handling bill payments is even better—there are no fees involved. That means no subscription fees and no processing fees, which adds up to even more savings and efficiency for your business.
Stress on the finance staff
Behind every stack of invoices and ledger entries are the dedicated finance professionals tasked with managing AP processes. The repetitive nature of manual tasks, coupled with the pressure to maintain accuracy and meet deadlines, can lead to stress and burnout among finance teams.
Manual AP processes require extensive manual oversight, constant error-checking, and reconciliation efforts, diverting valuable time and energy from more strategic financial activities. Automation alleviates the burden on finance staff by automating routine tasks, allowing them to focus on value-added activities such as financial analysis, forecasting, and decision-making.
Move forward with Forwardly
Now that you have a clear picture of what’s wrong with your manual AP process, take the leap towards a more efficient future with AP automation and witness the transformative impact on your business’s financial management.
Discover how Forwardly can optimize your accounts payable with seamless automation, instant business payments and robust security features. Schedule a demo today and experience firsthand the benefits of efficient, automated financial management.
