Seven Ways ePayables Solutions Can Make Life Easier
PayStream Advisors reports that nearly three-quarters of invoices handled between healthcare suppliers and healthcare organizations are received in paper format or email. When it comes to payments management, research shows that checks are most often used to make payments. Manual, paper-based payment processes are time-consuming and labor-intensive, resulting in delays, missed early payment discounts and poor provider-supplier relationships. Additionally, high volumes of paper checks can lead to significant processing costs, payment processing errors, and a risk of fraudulent or improperly authorized payments.
Healthcare organizations that have automated their procurement processes are now turning their sights on the automation of payments in order to improve overall efficiency, cut costs and increase savings. PayStream Advisors’ recently surveyed hundreds of North American payables practitioners and C-suite executives, examining payables management trends across a variety of industries, including healthcare. Those surveyed reported the following top benefits achieved through accounts payable (AP) automation.
- Quicker invoice approvals: Automated, electronic payment management processes streamline invoice approvals, helping providers generate payments to suppliers sooner.
- Reduction in paper invoice volume: The use of an ePayables solution can significantly reduce the volume of paper invoices, and the costs and manual labor required to manage them.
- Improved visibility into unpaid invoices: By processing invoices through a single electronic channel, healthcare organizations have greater visibility to unpaid invoices, and can therefore resolve them sooner.
- Increased employee productivity: AP automation minimizes manual labor, including data entry, improving employee productivity and freeing up time for more strategic activities.
- Lower overall AP processing costs: According to industry research from RPMG Research Corporation, it can cost as much as $31 per transaction for hospital providers to manually process and pay invoices by check. Therefore, switching to electronic payment processes can generate significant savings.
- Reduction in late payment penalties and interest: Faster and more efficient payment processes allow healthcare providers to pay supplier invoices sooner to avoid late payments fees and interest charges.
- Better compliance with regulatory requirements: Managing invoices and payments electronically offers healthcare organizations greater visibility into and control over the payables process, which helps them maintain compliance with regulatory requirements.
What you don’t know about payable automation may be holding your organization back. Learn more and read the entire PayStream Advisors paper on the impact of payables automation.