As a Controller for a manufacturing company in Indiana, you know that the future of your business depends on your ability to adapt to new technologies and trends. If you have been busy working with your leadership team you may have missed the 100,001 unsolicited sales and marketing emails talking about one of the most important trends in manufacturing today, Industry 4.0, which is characterized by the use of advanced technologies such as artificial intelligence, robotics, and the Internet of Things (IoT) to automate and optimize manufacturing processes.
One of the key ways to improve the efficiency for your manufacturing operation is to automate your accounts payable (AP) process. Below are 5 reasons why your AP team and other Indiana Manufacturing Companies are encouraging you to rip the Band-Aid off and join the early adopters by automating your AP.
- Eliminate Manual Errors: Manual AP processes are susceptible to human error, which can result in expensive headaches. Have you ever tried to get money back from someone your team accidentally paid twice? AP automation is the solution to eliminate human error by automating manual tasks and offering real-time visibility into your AP process.
- Remove bottlenecks: No one wants to be Lucy Ricardo. Manual AP processes can be hindered by bottlenecks, such as waiting for approvals, signatures, or your team taking PTO. Implementing AP automation, improves your AP process and eliminate these bottlenecks, ultimately saving valuable time and money. Also, your team will thank you when they come back from PTO and they don't have 100,001 invoices to resolve.
- Save Money: Manufacturing companies in Indiana can significantly reduce their operational costs by automating AP. Manual AP processes often require a large workforce to manually input and process invoices, which can be time-consuming and prone to errors as we discussed. These errors can lead to financial losses, as duplicate payments or late payments can result in unnecessary expenses or missed opportunities for early payment discounts.
With AP automation, the need for manual data entry is eliminated. Invoices are automatically captured, processed, and matched with purchase orders and receipts, streamlining the entire AP process. This not only saves time but also reduces the risk of errors. The automation software should be able to validate and verify invoice data, ensuring accuracy and preventing costly mistakes.
AP automation can help manufacturing companies save money by optimizing cash flow management. A good AP automation solution provides real-time visibility into the status of invoices, allowing companies to identify outstanding payments and take appropriate actions. By having a clear overview of their financial obligations, companies can better manage their cash flow, avoid late payment fees, and even negotiate early payment discounts with their suppliers.
Furthermore, AP automation can reduce the need for physical storage space for paper documents. With electronic invoices and automated workflows, companies can eliminate the costs associated with printing, mailing, and storing paper invoices. This not only saves money but also contributes to a more sustainable and environmentally-friendly business practice.
- Improve compliance: AP automation can help you to improve compliance with financial regulations by ensuring that invoices are processed and paid on time. This not only helps to avoid late payment fees and penalties but also strengthens your company's reputation for reliability and professionalism. By automating the AP process, you can set up automated reminders and notifications for invoice due dates, ensuring that payments are made promptly. Additionally, AP automation software can provide a clear audit trail, making it easier to track and manage invoices, payments, and financial records, which is essential for compliance with regulatory requirements. With AP automation, you can have peace of mind knowing that your accounts payable processes are in line with industry standards and regulations, reducing the risk of non-compliance and associated consequences.
Nimbello: The Leading AP Automation Solution for Manufacturing Companies
Nimbello is a leading AP automation solution that is specifically designed for manufacturing companies. Nimbello can help you to automate all aspects of your AP process, from invoice capture to payment processing.
Nimbello offers a number of features that are specifically beneficial for manufacturing companies, such as:
- Support for multiple currencies: Nimbello supports multiple currencies, which is important for manufacturing companies that operate internationally.
- Integration with ERP systems: Nimbello integrates with any ERP systems but within the manufacturing space the most common ones we help with are SyteLine, QAD, and D365F&O. This makes it easy to automate the flow of data between your ERP system and your AP automation solution.
- Robust reporting and analytics: Nimbello provides robust reporting and analytics that can help you to gain insights into your AP process and identify areas for improvement.
If you are looking for a comprehensive AP automation solution that is specifically designed for manufacturing companies, Nimbello is the ideal solution for you. Also, while we have customers all over the world we love when we get a chance to help companies in our home state of Indiana. If you want to help your manufacturing feel free to reach out and request a 1-1 product demo with our team.
*Note if you made it to the end of this post you probably saw a few human errors. If you reach out with feedback on the human errors we made in this post - we will provide you with a small surprise.