Why do Pharma Industries Need Accounts Payable Automation?
Posted by Fazal Sayyed
The Pharma Industries' Current Accounts Payable Situation 73 percent of pharmaceutical companies process their invoices manually, according to a Levvel Research survey. Manually processing invoices takes a long time and is prone to mistakes, which can result in payments being delayed, disputes, and strained vendor relationships. Additionally, because it takes more time and resources to process invoices manually, higher operational costs may be the result.Accounts Payable (AP) Automation can help the Pharma Industries to streamline their invoice processing and overcome the challenges associated with manual processing. Let's take a look at how Accounts Payable Automation can assist pharmaceutical firms in overcoming the challenges associated with the manual accounts payable approach.
Benefits of Accounts Payable Automation for Pharma Industries
There are several benefits of accounts payable automation for the pharma industry, including:
Reduced Operational Costs
Pharma industries may indeed be able to lower their operating expenses with the aid of automated accounts payable systems. Pharmaceutical companies can reduce labour costs, the number of invoice discrepancies, and late payment fees by doing away with manual data entry and invoice processing.
Eliminate Invoice exceptions
Even though handling invoice exceptions is a task that most people dislike, it is necessary when working with paper or scanned PDF invoices. However, invoice exceptions are no longer necessary to be accepted as a necessary evil of conducting business. Despite this, many businesses continue to put up with this issue, and according to a recent study, 62% of accountants consider invoice exceptions to be their biggest daily challenge. Pharmaceutical and biotech companies can get past the challenges posed by invoice exceptions by investing in AP automation. The approval of invoices is slowed down by the amount of manual work required to resolve each exception, which may result in credit holds if suppliers are not paid on time.
Enhanced Vendor Relationships
Automation of accounts payable can improve vendor relations for the pharmaceutical industry. Pharmaceutical companies are able to quickly settle any problems or disputes by using automated systems, which can offer real-time visibility into the status of invoices. This may increase the likelihood of receiving discounts or other benefits and help to increase vendor satisfaction. Accounts payable automation can significantly benefit the pharmaceutical industry, according to numerous studies. Companies that automate their accounts payable procedures can cut their invoice processing costs by up to 80%, according to a report by Ardent Partners. Levvel Research's study also revealed that businesses that automate their accounts payable procedures can process invoices up to six times more quickly than those that do not.
Streamlined Approval Process
It can take a while and be prone to delays for invoices and payments to be approved. By automating routing and supplying real-time visibility into the approval status, accounts payable automation software can streamline the approval process. This could speed up cash flow and shorten the time it takes to approve invoices and payments.
Your financial procedures must be able to keep up with the expansion of your pharmaceutical industry. You can get the scalability you need to manage increased volumes of invoices, payments, and purchase orders from accounts payable software intended for large businesses. You can manage financial data across numerous locations, divisions, and business units with the right software.
Accounts payable automation can provide significant benefits to pharmaceutical companies. It can help to improve efficiency, reduce operational costs, and enhance vendor relationships. The data supports the adoption of accounts payable automation in the pharma industry, and companies that choose to automate their accounts payable processes can enjoy significant cost savings and productivity gains. With Cimmra eInvoicng and AP Management, pharmaceutical companies can streamline their accounts payable processes, reduce errors, and ensure timely payments to vendors.