What could your accounts payable department do with an extra 50 hours per month?
- Look for opportunities to help your organization better manage its cash?
- Spend more time improving supplier relationships?
- Clean up your vendor master database?
Freeing up 50 hours each month seems a dream for accounts payable departments that are drowning in paper and manual processes.
But that’s exactly what one community-sponsored, not-for-profit senior healthcare organization achieved as a result of migrating to electronic supplier payments.
How automation eliminates payment delays
Like many organizations, the St. Petersburg, FL, healthcare organization used to pay all 350 of its suppliers via check. The organization makes roughly 3,600 payments annually, worth $10 million.
The healthcare organization’s accounts payable staff wasted a lot of time and effort paying all its suppliers via check.
Worse, paying suppliers via check was prone to lengthy delays that resulted in strained supplier inquiries, phone calls and e-mails from frustrated suppliers regarding the status of their payments, missed early payment discounts and a weaker negotiating position with suppliers.
These are the reasons the healthcare organization deployed an electronic payment solution.
The healthcare organization now uploads its approved invoice file to a payment hub in the cloud. The hub parses the file based on the preferred payment method for each supplier.
And the electronic payment solutions provider assists with identifying and registering suppliers for electronic payments.
Free up Your AP Staff’s Time with Electronic Payments
The healthcare organization currently pays 70 percent of its suppliers electronically.
As a result, the healthcare organization is freeing up 50 hours of its accounts payable staff’s time each month, reducing its payment costs by $12,000 annually, and earning cash-back rebates on card payments to suppliers.
Additionally, the healthcare organization no longer experiences delayed payments to suppliers, which has resulted in fewer supplier inquiries and more early payment discounts.
Want to free up your accounts payable staff to spend more time on the things that matter most?
Contact ACOM Solutions to arrange a no-obligation consultation with one of our payment experts.