Organizational hypergrowth: A good reason to start automating your AP

AP Automation Best Practices Industry News
  • May 19, 2020
  • Joe Perkins
Organizational hypergrowth: A good reason to start automating your AP

Organizational hypergrowth: A good reason to start automating your AP

For many entrepreneurs, business owners, and investors, hypergrowth is the ultimate goal. To see your company experiencing exponential growth at accelerated speeds can mark the turning point of success. Yet, accommodating rapid expansion is usually accompanied by growing pains.

Achieving “hypergrowth” is defined by having a compound annual growth rate (CAGR) of 40% or higher for more than one year. In contrast, “rapid growth” falls between 20%-40%, and “normal growth” companies experience a CAGR of less than 20%.

Keeping up with hypergrowth can be challenging, especially for new companies. As your business grows, so will your team, and you’ll need to consider investing in the right tools and technology that will support that growth. Scalable systems and processes that support recruitment, development, and management will prove to be crucial to success.

The progress of any business is largely determined by profitability and the efficiency of a company’s finance department. Though traditionally thought of as a back-office function, the accounts payable department plays a critical role in supporting organizational growth.

When small and medium-sized businesses are unable to support rapid growth with a small accounts payable team, they must determine how to handle the increased workload. In the past, a business would have hired additional staff. Today, there’s a different option.

Growing your business with efficient processes

Businesses are increasingly recognizing the need to automate their accounts payable department processes and for good reason: the positive impact of AP automation is indisputable. AP automation allows businesses to dramatically increase account payable workloads with smaller teams while improving their return on investment.

Here’s are some of the ways that businesses can support hypergrowth using AP automation software:

Automated invoice entry

Department workflows can be optimized from the very beginning by using AP automation for invoice collection, sorting, categorizing, and data input upon arrival. Electronic invoices can be processed immediately, and the data is automatically, digitally extracted free from errors. Overall, a digital AP automation platform significantly reduces the amount of manual time spent inputting invoices and helps build a systematic, error-free intake process.

Automated PO matching

AP automation software extracts and stores all the documents necessary to support the purchase order matching process while automatically capturing and digitizing invoice data such as GL codes, line item information, terms, and amounts. This helps AP departments save time, remove bottlenecks, and improves accuracy.

Automatic data capture

AP automation software extracts digital and handwritten data and automatically captures it, free of errors. Eliminating invoice errors and duplicate payments means your team will no longer need to rebalance the books when last-minute discrepancies are found during the month-end close. Plus, all captured data can be synced across your accounting department and used throughout the entire organization.

Automating routing & approvals

Automating the invoice routing and approval process helps simplify the process and speeds up approval times. Once an invoice is captured and validated, it is automatically sent to the manager responsible for approving the payment along with notifications that ensure the invoice doesn’t get missed. If the approver is out of the office, an automated system can route the invoice to another designated approver. With cloud-based software, approvers can access and approve invoices from anywhere in the world, at any time.

Supporting growth using strategic data

AP automation helps businesses expedite the entire accounts payable process, but it can also provide a strategic advantage for your business. Many businesses still conduct reporting using manual data entry and spreadsheets that come attached with time-consuming, inconsistent, intensive efforts fraught with errors.

Using an AP automation platform provides your business with fully automated data capture and sophisticated analytics. This data allows companies to forecast a truer picture of costs and better control P&L to support financial predictions and reporting. CFOs and their teams can deliver accurate reports more frequently, complete a financial close quickly, and dive deeper into company data to deliver strategic insights to other leaders within the organization.

Digital AP automation platforms also mean businesses can create a comprehensive, searchable database of payment history automatically. This type of software allows managers to examine historical data quickly and strategize innovative ways to save money by taking advantage of payment incentives.

A new world of growth

Any business that wants to grow must have an accounts payable team in place with the appropriate software and tools to carry out their jobs with efficiency and confidence. Having the right set of analytical tools helps companies gauge their performance, compare their metrics against industry standards, and set appropriate improvement goals and objectives. Utilizing the full scope of an automated system can create a new world of efficiencies and savings that benefit and support strategic organizational growth.

A complete guide to AP automation

The average AP workflow is full of manual, time-consuming, hands-on tasks. Imagine how much easier tracking and amplifying AP performance would be with automated workflows & processes. To learn more about how automated AP processes can save your company both time and money, download our complete guide to AP automation.

Rethink what AP can be

Joe Perkins

Joe joined Goby in June of 2019 as a Solutions Development Specialist. In his role, Joe has been an integral part of driving growth by sourcing new sales opportunities. He has been a trusted resource in developing relationships with prospects.

LinkedIn
Sign up for the Goby Mailing List!