As businesses navigate increasingly complex accounts payable (AP) processes, they face a growing challenge: finding and retaining skilled AP professionals. Recent economic uncertainty has only exacerbated this issue, with many organizations operating lean AP teams that struggle to keep up with the workload.
However, rapid advancements in payment technology capabilities – specifically, payment automation – offer a powerful solution. By embracing automation, businesses can not only streamline their financial operations but also create an attractive work environment that appeals to top accounting talent and reduces costly employee turnover.
Vendor payment automation can help businesses overcome the accounting staffing crisis by elevating the employee experience and achieving new levels of organizational efficiency. Addressing the root causes of the staffing shortage with automation technology, as well as following best practices for successful implementation, will equip organizations with the capabilities needed to transform AP departments into a hiring and employee retention superpower.
The Accounting Staffing Crisis: A Ticking Time Bomb For Businesses
The shortage of accounting professionals is a growing concern across nearly every industry. Over the past decade, there has been a 33% decline in the number of accounting graduates entering the workforce, while the demand for accounting talent is expected to grow by 6% over the next ten years – nearly 50% faster than the average occupation.
When industries experience a professional shortage, high turnover rates inevitably follow as businesses compete to fill critical roles. Despite their significant impact on business continuity, many AP departments already operate under a lean staffing model, which can lead to increased workloads and stressed-out employees. A further shortage of AP professionals could be devastating – especially for organizations that cannot afford to win in a hiring contest against larger competitors – disrupting crucial financial operations and undermining business continuity.
The root cause of this staffing challenge often lies in the nature of AP work itself. Manual processes, such as endless data entry, paper-based workflows, and human intervention contribute to employee burnout and dissatisfaction. Accounts payable teams are putting in more hours than ever, struggling to keep up with the workload, and often left feeling like they’re fighting an uphill battle against mounting invoices.
AP Automation: The Solution To the Staffing Conundrum
Advances in payment technology, particularly in the realm of AP automation, offer a powerful solution to this staffing problem. By automating accounts payable processes, businesses can revolutionize the efficiency and employee experience of their AP department, reducing turnover and creating an attractive work environment for future hires.
Automating Away the Mundane
Manual AP processes are time-consuming and error-prone, heavily contributing to employee stress and disengagement. Repetitive tasks like data entry, invoice processing, and complicated payment approvals can quickly lead to burnout, especially in lean staffing environments that demand long hours from accounting professionals.
AP automation can expedite and reduce the headaches associated with these low-value, tedious activities, freeing up AP teams to focus on more strategic tasks that require critical thinking. With automated payment processing, simplified approvals, and real-time financial reconciliation, employees can spend less time on the mundane and more time on value-adding initiatives that benefit the organization.
This improvement in the AP professional’s experience can have a profound impact on job satisfaction, work-life balance, and overall employee retention. By automating the most frustrating aspects of AP work, businesses can create an environment that appeals to top accounting talent and reduces the risk of costly turnover.
Retaining Institutional Knowledge
Another critical benefit of vendor payment automation is the ability to preserve institutional knowledge and expertise within the AP function. When skilled AP professionals leave the organization, they take with them a wealth of historical payment knowledge, vendor relationships, and process familiarity. Automated systems act as a repository for this invaluable information, ensuring that it remains accessible and transferable, even as team members inevitably come and go. This reduces the burden of onboarding new hires while also maintaining business continuity and supporting better financial decision-making across the organization’s operations.
Businesses can better navigate payment complexities, identify optimization opportunities, and provide a higher level of service to their vendors and customers by retaining this institutional knowledge. This, in turn, enhances the reputation and credibility of a business’s AP team, making it an attractive role for talented accounting professionals.
The Business Case for AP Automation
The benefits of AP automation extend far beyond solving staffing challenges. Modernizing accounts payable processes can also drive significant improvements in organizational efficiency and financial performance.
Improving Organizational Efficiency
The criticality of efficient and accurate AP operations cannot be overstated. Slow turnarounds or errors in this role can have consequences that negatively impact multiple aspects of the business, from strained vendor relationships to cash flow problems and regulatory compliance issues.
AP payment automation helps ensure these crucial financial operations run smoothly and efficiently. Businesses can reduce the risk of errors, accelerate payment cycles, and maintain strong partnerships with their vendors by streamlining outbound payments and approvals, while enabling real-time financial reconciliation. Additionally, the data-driven insights and increased visibility provided by automation can empower businesses to make more informed financial decisions, including optimizing payment strategies and identifying new cost-saving opportunities.
Embracing the Future of Payment Processing
The world of business payments is rapidly evolving, with digital payment methods, virtual cards, and enhanced ACH becoming increasingly prevalent. Modern AP payment capabilities integrate seamlessly with existing ERPs, enabling businesses to take advantage of cost savings, security features, and rebate opportunities from their own trusted platform.
By automating vendor payments, organizations can reduce the administrative burden, eliminate the need for paper checks, and tap into new revenue streams from virtual card and ACH rebates. This improves the bottom line while also freeing up AP teams to focus on higher-value activities and decision-making to support larger business strategies.
Implementing AP Automation for Staffing Success
Transitioning to an automation-enabled workflow may seem like a daunting task, especially for businesses that cannot afford an error or delay in AP execution. With careful planning and a strategic approach, businesses can ensure a smooth implementation and unlock the full potential of this technology superpower.
Assess Current AP Processes
The first step in the journey is to conduct a thorough assessment of the organization’s current AP processes. This involves mapping out each step of the workflow, from invoice receipt to payment processing, and identifying areas of inefficiency, bottlenecks, and pain points.
Gathering feedback from the AP team is also crucial, as they can provide valuable insights into the daily challenges they face on a regular basis. Understanding these pain points will help determine where automation can have the most significant impact, simultaneously improving efficiency and enhancing the employee experience.
Define Goals and Requirements
With a clear understanding of the current state, the next step is to define the specific goals and requirements for the vendor payment automation initiative. Common objectives include reducing processing time, improving accuracy, enhancing visibility, or achieving cost savings.
Establishing key performance indicators to measure the success of automation technology is also essential. These metrics can help track progress and demonstrate the tangible benefits of automation.
Select and Integrate the Right Solution
Once the goals and requirements are established, the organization can research and evaluate AP payment automation solution options. It’s crucial to look for providers with a proven track record, positive customer reviews, and robust support services to ensure a seamless integration and successful long-term partnership.
Developing a detailed integration plan is also critical. This will help the organization and the automation provider work together to ensure a smooth transition from manual to automated processes.
Train Staff and Manage the Transition
The final piece of the puzzle is ensuring that the AP team is fully prepared to engage with the new automated workflow. Offering comprehensive training sessions and providing ongoing support and optimization will help maximize the benefits of the technology as well as ensure positive employee experiences. Continuously monitoring the system’s performance and gathering feedback from the AP team will also help the organization make any necessary adjustments and maintain the momentum of the automation initiative.
Activating the Hiring and Retention Superpowers of AP Automation
As businesses try to overcome the accounting staffing crisis, they will inevitably find that the solution lies in embracing the power of AP automation. By streamlining accounts payable processes and elevating the employee experience, organizations can not only attract but also retain top accounting talent, ensuring the long-term success and continuity of financial operations.
Moreover, the benefits of AP automation extend far beyond the staffing challenges, driving significant improvements in organizational efficiency, cost savings, and payment processing capabilities. By taking a strategic approach to implementation and leveraging the expertise of trusted automation partners, businesses can unlock the full potential of modern payment technology and position themselves for long-term growth and success.
This article was originally published in HR Future.
