Traditional paper-based AP operations hurt businesses of all sizes, but SMBs feel the negative effects to a greater extent. Here are three primary reasons why:
Everything comes at a higher cost
SMBs don’t have the high invoice volumes of large enterprises but the time and manpower needed for manual data entry, approval and storage take their toll.
Big businesses can manage by simply adding staff and easily absorbing the cost. Cash-strapped SMBs, on the other hand, are forced to handle invoices with limited personnel even though their volumes may be growing.
There is much less room for error
Businesses who process their invoices manually are proven to experience a higher rate of errors (e.g., duplicate payments, late payments and overpayment). Where larger enterprises typically have enough leverage to withstand the fallout from a damaged supplier relationship or missed early payment discount, the majority of SMBs have no such luxury.
Improving is easier said than done
Unlike bigger businesses, a lot of SMBs run obscure ERP systems or homegrown legacy solutions. The complexity of such a setup can cause SMBs to think their AP infrastructure is beyond help.
What’s more, the general lack of visibility due to manual processing makes it difficult to forecast expenses and identify areas of improvement.
The good news is, the benefits of paperless AP are no longer exclusive to businesses with deep pockets…
Fuji Xerox and Esker have helped a multitude of SMBs streamline AP processing through the use of cloud automation.
The cloud offers an ideal alternative. It makes automation easy and affordable for SMBs thanks to a variety of features:
- No New Hardware or Software Investments
- Predictable Pricing via Pay-Per-Use Model
- Unified AP Workflow Outside the ERP System
Find out more about Accounts Payable Automation for SMBs
Find out more about Fuji Xerox and Esker AP Automation Platform