# Has the pandemic accelerated automation in Accounts Payable?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-14
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Transforming Accounting: Automating the Accounts Payable Process
Meta Description: Discover how automation can revolutionise your accounting department, saving time and money whilst eliminating errors. Don't let manual processes hold you
URL: https://financedigest.com/has-the-pandemic-accelerated-automation-in-accounts-payablehtml

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_By **Magali Michel,** Director,_ [_Yooz_](http://www.getyooz.co.uk)

There’s no doubt digital transformation was accelerated during the pandemic, but that doesn’t necessarily mean it was in the right areas.

Because despite finance leaders and businesses focusing on their digital transformation strategies during the pandemic, many are yet to prioritise the day-to-day functions of their accounting departments.

As employees left the office, businesses scrambled around for laptops, cloud computing systems and software to facilitate remote working conditions.

But now the dust has settled and the future of remote, office or hybrid working seems a little clearer, it’s time to take stock of where [tech investments still need](https://www.financedigest.com/tech-awakening-needed-across-uk-workforce.html "Tech awakening needed across UK workforce") to be made.

Collaboration tools such as Microsoft Teams and Slack have left us in good stead, but it’s [time to think long-term about the future of the business – especially in accounting](https://www.financedigest.com/its-time-for-real-time-accountancy.html "It’s time for real time accountancy "), an area notorious for being a digital transformation laggard.

**[Manual process](https://www.financedigest.com/new-cloud-cfo-automates-the-manual-consolidation-process-for-group-finance-with-spreadsheets-connected-to-the-cloud.html "New Cloud CFO Automates the Manual Consolidation Process for Group Finance with Spreadsheets Connected to the Cloud") hinders progress**

[Automation has changed](https://www.financedigest.com/10-ways-automation-has-changed-the-role-of-the-cfo.html "10 ways automation has changed the role of the CFO") our lives to the point where we don’t have to type the same email all the time, where our favourite fast food order is at our fingertips ready to be ordered, or can drive us from A to B without us touching the steering wheel. Well, at some point in the future at least.

[Yet when it comes to finance](https://www.financedigest.com/g7-finance-chiefs-agree-on-russian-oil-price-cap-but-level-not-yet-set.html "G7 finance chiefs agree on Russian oil price cap but level not yet set") departments, an area known for labour-intensive and monotonous tasks, and where automation can really show its stuff, the technology is almost nowhere to be seen.

[A recent survey of 1,000 finance leaders](https://www.getyooz.com/en-gb/whitepaper-survey-the-state-of-automation-in-finance) showed that companies across the UK, EU and US continue to overlook accounts processing automation, with many still heavily reliant on manual processes.

One in five (20%) businesses are still using Excel spreadsheets and manual processes for [accounts payable – just 18% have adopted full automation](https://www.financedigest.com/5-common-mistakes-around-accounts-payable-automation.html "5 Common Mistakes Around Accounts Payable Automation"), with end-to-end invoice capture, approval and payment.

A typical [accounts payable](https://www.financedigest.com/accounts-payable-departments-lag-behind-in-ai-automation.html "Accounts Payable departments lag behind in AI automation") process would involve a colleague manually entering invoice details into a system of record, receiving approval from managers, and finally initiating payment.

Although it sounds simple in these three steps, manually processing invoices has proven time and time again to [increase the possibility of human](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") error, miscalculations and incorrect or double payments.

[According to Gartner](https://www.energy-as-a-service.co.uk/cost-of-invoice-processing/), the cost of processing one invoice in the UK can range from £4 to £25, and in some cases can rise as high as £50. The cost of invoice processing using automation tools can reduce this by [as much as 80 percent](https://www.getyooz.com/blog/slash-and-earn-how-to-cut-your-ap-cost-per-invoice).

Many [businesses are losing money](https://www.financedigest.com/breaking-down-the-barriers-of-ar-automation-to-help-businesses-save-money.html "Breaking down the barriers of AR automation to help businesses save money ") through higher invoice processing costs and slow payments and collection processes, not to mention the impact on client and supplier relations.

By ignoring the benefits new technology can bring, businesses are gambling with their own productivity and efficiency – as well as the [knock-on effects](https://www.financedigest.com/banking-turmoil-will-not-have-knock-on-effect-on-commodities-trafigura-cfo.html "Banking turmoil will not have knock-on effect on commodities -Trafigura CFO") towards their customers and suppliers.

**[Accounts Payable needs](https://www.financedigest.com/5-countries-you-need-to-have-an-offshore-account-in.html "5 Countries You Need To Have An Offshore Account In") a tech injection**

But it doesn’t have to be this way. In fact, many businesses have woken up to the fact they need better processes, with the same survey of [finance leaders showing that Cloud and SaaS solutions were the top tech priority for 41% of businesses](https://www.financedigest.com/6-ways-to-spring-clean-your-business-finances.html "6 ways to Spring clean your business finances").

This is largely being driven by limited resources in finance departments and high invoice volume, with [businesses receiving and sending anywhere](https://www.financedigest.com/be-the-digital-eyes-and-ears-of-your-business-from-anywhere-in-the-world.html "Be the digital eyes and ears of your business – from anywhere in the world!") from ten to ten thousand a month.

The use of manual processes, and a glance over at the [benefits of technologies](https://www.financedigest.com/thomson-reuters-report-reveals-risk-compliance-staff-expect-to-see-significant-benefits-from-artificial-intelligence-ai-and-distributed-ledger-technologies.html "Thomson Reuters Report Reveals Risk & Compliance Staff Expect to See Significant Benefits from Artificial Intelligence (AI) and Distributed Ledger Technologies") such as automation, has driven a desire to digitise. As have the proof points, with [businesses standing to realise an 80% reduction in processing costs](https://www.financedigest.com/green-initiatives-cut-self-storage-business-space-stations-energy-costs-by-75.html "Green initiatives cut self-storage business Space Station’s energy costs by 75%") and 70% faster processing cycle times.

[Automation in accounts payable](https://www.getyooz.com/en-gb/accounts-payable-automation) eliminates the need for human interaction, and therefore error-prone tasks. In turn, this [reduces the risk of fraud](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?"), as digital records are kept for full visibility and traceability further down the chain and for audit purposes.

Going digital also [creates sustainability](https://www.financedigest.com/creating-sustainable-value-through-responsible-investment.html "Creating sustainable value through responsible investment") advantages, reducing the amount of paper needed to be printed. It also helps reduce labour, [storage and printing costs](https://www.financedigest.com/can-storage-containers-solve-the-soaring-cost-of-bricks.html "Can Storage Containers Solve the Soaring Cost of Bricks?"), as well as better help businesses review and optimise their internal resources.

With automation, finance and accounting departments can also help optimise supplier payment processes, [improving efficiency without compromising on quality and spend control](https://www.financedigest.com/german-regulator-calls-on-allianz-to-improve-controls-source.html "German regulator calls on Allianz to improve controls – source").

**No more excuses**

The accounts payable [function was already in desperate need for automation](https://www.financedigest.com/why-do-modern-finance-functions-strive-for-automation.html "WHY DO MODERN FINANCE FUNCTIONS STRIVE FOR AUTOMATION?") even before the pandemic. Now it’s become the stand out candidate.

Now, with mounting budget constraints and an even Post-pandemic, greater [emphasis needs to be placed](https://www.financedigest.com/future-cheque-clearing-model-places-emphasis-on-speed-and-innovation.html "FUTURE CHEQUE CLEARING MODEL PLACES EMPHASIS ON SPEED AND INNOVATION") on time and cost savings, allowing finance professionals to focus on high-priority matters.

Although many businesses have focused their efforts on [keeping operations going and staff working over the past](https://www.financedigest.com/the-pull-of-the-past-1-in-5-keep-items-they-think-will-be-valuable-in-the-future.html "The pull of the past! 1 in 5 keep items they think will be valuable in the future") year, the benefits of automated solutions simply cannot be ignored any longer.

With manual processes proving to be too time-consuming and high risk, any opportunity to improve quality and efficiency should be regarded as a [top priority](https://www.financedigest.com/survey-finds-regulation-remains-top-financial-services-priority-for-2017.html "Survey finds Regulation Remains Top Financial Services Priority for 2017").

Those that haven’t embraced automation risk being [left behind](https://www.financedigest.com/click-and-collect-or-get-left-behind.html "Click and Collect or get left behind") by those that have.


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