Guest Column: Cutting Costs With Accounts Payable Automation

By Mark Brousseau, IAPP-TAWPI

Automation is a tricky word when it comes to accounts payable operations. For some departments, those just starting the journey toward becoming fully automated, it means introducing imaging technology that streamlines the way they handle invoices. For departments that have embraced the latest advancements in AP technology, it means taking advantage of dynamic discounting through portal software that lets vendors service their own accounts.

One thing is clear: Technology holds the key toward transitioning accounts payable from a cost center into a profit center and making the AP professional's job strategic and even more relevant. The problem, industry watchers say, is that there's no "one size fits all" solution, and each department is left to cobble together its own set of tools to fit its individual needs. So should an AP department automate or not? It's a tough call. Some aren't sure where to begin, how much to automate, or what technology to use.

But there's good news. The number of tools is growing as innovative companies work to solve the AP automation dilemma. And users are largely satisfied with AP automation technologies, once they implement them. As the AP profession gains new stature, capturing the attention of controllers, CFOs, and even CEOs looking to cut costs and preserve precious dollars in an economy hit hard by recession, companies that offer solutions in AP technology are racing to come up with ways to improve speed and accuracy in processing payables.

"It's a green field for us," says Joe Flynn, president and CEO of Lavante, a San Jose, Calif., company that specializes in strategic recovery and vendor file management. "We're introducing technology where none exists and through means that are affordable and accessible to companies of all sizes."

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