In today's fast-paced world, automating business processes is essential for improving efficiency and reducing manual errors within universities. Educational institutions handle various financial transactions, including tuition collection, lunch funds, and vendor payments. Automating their accounts payable (AP) processes can bring significant benefits. Below are 5 of the top reasons why National Association of College and University Business Officers are automating AP heading into the 2024-2025 school year.
Improved Efficiency
Manual AP processes are time-consuming and prone to errors. Automating AP payments streamlines the entire payment cycle, reducing the time spent on administrative tasks by an average of 65% according to a previous report by Ardent Partners. This results in faster payment processing, timely vendor payments, and improved vendor relationships.
Cost Savings
Eliminating paper-based processes and reducing manual labor can save up to $8 per transaction. Automation minimizes the risk of errors or duplicate payments, leading to significant cost savings. Institutions can reallocate employees and budgets to more value-added tasks instead of manual data entry and invoice processing.
Enhanced Accuracy and Compliance
Automating AP payments minimizes the risk of human errors and ensures accuracy throughout the payment process. Data is transmitted digitally, reducing manual touchpoints and enabling compliance with financial regulations and internal policies. This leads to fewer payment discrepancies and delayed payments.
Strengthened Financial Controls
Automated AP systems provide enhanced financial controls by separating duties and approval workflows, ensuring proper authorization and preventing fraudulent payments. These systems offer comprehensive data, allowing institutions to track and monitor payment activities, access payment histories, and generate reports. This helps mitigate financial risks and maintain compliance.
Integration and Scalability
An ideal AP automation solution should seamlessly integrate with existing ERP systems, student information systems, and other applications. This enables seamless data flow and reduces manual data entry. Scalability is also crucial, as educational institutions may experience growth or changes in payment volumes over time. An automated solution should accommodate such changes without compromising performance and efficiency.
Nimbello's Advantage for PO-Based Invoices
Nimbello streamlines the AP process for educational institutions through automation, particularly for PO-based invoices. Many universities have started the AP automation journey by trying solutions from their current procurement or accounting software providers like Banner, Jaggaer, or Workday and often these solutions can work at first but then the AP and Finance teams realize they are still doing a lot of manual work, like performing a 3-way match. Other times we hear how our friends in AP have to constantly email a professor in the School of Chemistry to get an invoice approved. When universities make the decision to move to Nimbello, their finance and accounting teams start to take advantage of our advanced automation solutions that ensure their purchase orders are matched with invoices and receipts, reducing errors and speeding up the payment process. This leads to improved accuracy, enhanced compliance, and stronger financial controls.
Visit Us at NACUBO 2024 Annual Meeting
Nimbello is proud to sponsor the NACUBO 2024 Annual Meeting in Chicago. We invite all attendees to visit us at Booth #1124 to learn more about how our automation solutions can support financial and operational excellence in higher education. Join us to discover how Nimbello can help your institution streamline its accounts payable process and achieve greater efficiency and accuracy.
Embrace the power of Nimbello and take your AP processes to the next level!