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4 Ways a CFO can maximize ROI by automating vendor invoice processing

Automating vendor invoice processing boosts profitability. Consider discounts, use payment data for cash management, build scalable processes, and transform invoicing.

4 Ways a CFO can maximize ROI by automating vendor invoice processing
Written by Matricia on Dec 21, 2018

Most CFOs perceive invoice processing from vendors as an inherent cost of business . Technology enthusiasts realize the value of automating this process . By automating invoices from suppliers, attention can be shifted from keeping costs under control to achieving the profitability and cash flow goals of the business.

When using vendor invoice automation solutions, there are 4 things to consider by the CFO to maximize ROI.

  • Use pre-payment discounts. Quick payment of bills in exchange for a discount is an offer that many suppliers will take. Unfortunately, only 29% of organizations benefit from these payments. By speeding up the approval of invoices through automation, you can gain the ability to negotiate with these discounts. Even 1-2% is justified if it is a large proportion of expenses.
  • Use payment information for better cash management. It is imperative to use segmentation tools to optimize payments to suppliers. Group the suppliers according to the importance of the relationship with your business, the volume of payments and their value. This way you can improve relationships with suppliers while making sure payments are prompt.
  • Build scalable processes that reduce human resource needs. If your vendor invoice processing department is not automated, how do employees manage their time? Supplier automation reduces manual labor, helping employees to:
  1. Process multiple invoices daily
  2. Accelerate exception resolution
  3. Manage supplier requests quickly and efficiently.

Transformed and processing vendor invoices into a profit center. 84% of organizations that automate the payment process significantly reduce costs. The financial directors of these organizations perceive the automation of invoices as much more than a way to get rid of paperwork. They see it as an opportunity to improve liquidity management and transform this crucial function of the organization.