For universities, managing finances is more than just paying bills — it’s about keeping strong relationships with suppliers, following strict rules, and ensuring the institution runs smoothly. University accounts payable departments balance a high volume of payments each day, from paying outside vendors to processing reimbursements for faculty. But when relying on manual processes, things can slow down, leading to costly mistakes.
This is where accounts payable (AP) automation can help.
AP automation is the use of technology to streamline the end-to-end accounts payable process, from invoice capture and data entry to approval workflows and payment processing. Using AP automation not only saves time but also improves accuracy, helping your university stay in control of its finances.
Higher education faces challenges that are different from those in the corporate world. For example, payment cycles are generally tied to academic semesters, seasonal housing expenses, and purchases that follow the university’s fiscal calendar. Manual AP processes can create an additional obstacle by slowing down workflows, increasing the risk of errors, and bottlenecking the approvals process.
AP automation offers colleges and universities a critical advantage by digitizing their accounts payable process. The benefits of AP automation include:
University AP departments handle thousands of transactions each year. But manually processing invoices and payments can slow your entire workflow down.
With AP automation, invoice line items are captured digitally, which saves time and reduces paperwork. Automation eliminates the need for manual data entry and allows payments to be processed much faster. This allows staff to focus on more important tasks that help the institution grow and succeed.
Automation helps universities cut down on unnecessary costs or fees. Manual accounts payable systems often involve physical expenses for resources like paper, printing, and postage. With thousands of invoices to process each year, supply costs can really add up. Digitizing the AP process eliminates the need for these costly items, so you can allocate funds to more critical needs.
Mistakes — like duplicate payments or incorrect data entry — can also be expensive. Automation reduces these risks and ensures greater accuracy, so universities save money and time spent fixing errors. These savings can then be used for more meaningful goals, like enhancing educational programs.
Maintaining compliance is key in the world of higher education. But manually managing university accounts payable can make it harder to keep tight control over finances. Fraud and regulatory issues can go unnoticed for a long time, leading to serious financial losses.
AP automation provides more transparency by setting up clear approval workflows and audit trails. Every payment is trackable, and only authorized people can approve transactions. This ensures the university follows its internal policies and meets all external regulations.
Universities also often receive funding from government grants, donations, and other sources that come with strict guidelines. Staying compliant with these rules is critical to avoiding penalties and receiving future funds.
With an automated system, universities have access to well-organized records and reporting tools, which reduces the stress that comes with meeting these strict requirements.
One of the biggest advantages of accounts payable automation is its ability to scale.
Whether your university is making payments to part-time lecturers or funding special projects, automation can handle it all — and more. No matter how many transactions pile up, an automated system keeps things moving smoothly. This means no delays, happy suppliers, and operations that run without hiccups.
Making payments accurately and on time builds strong relationships with vendors and service providers.
AP automation helps universities ensure that everyone is paid correctly and that invoices are processed on time. Timely payments lead to happier vendors, who are more likely to continue providing quality services at good rates. This can also lead to better contracts, early payment discounts, and easier management of the many service providers universities work with.
Switching to an automated AP system doesn’t have to be overwhelming.
First, identify where your current system is falling short. What approval delays exist or bottlenecks consistently occur?
Once you’ve pinpointed the issues, explore solutions tailored to your needs — like Nimbello, which integrates easily with the systems you already use, like your enterprise resource planning (ERP) or accounting platforms.
Nimbello’s AP automation solution helps universities like yours streamline workflows by offering powerful tools to manage invoices and payments all from one platform. This improves processing time, boosts accuracy, and creates a more efficient and transparent accounts payable ecosystem.
Automating AP is a smart move for universities looking to update their financial workflows. It simplifies processes, reduces staff workloads, and frees up time and money for more important things — like improving the student experience.
With Nimbello, you can prepare your financial processes for the future, making sure they are scalable, compliant, and ready for whatever comes next.
Learn how you can get started with Nimbello by contacting us today!