How can you reduce business costs by automating your processes?

To reduce business costs by automating your processes is just as important as paying attention to business revenue. That’s because controlling and reducing costs will have a big impact on your overall profit margin, which in turn means that the less you are spending, the more you will be making.

Of course, some expenses are simply unavoidable. A perfect example of this is the travel expenses of your sales reps and other on-the-go employees. While they need to be able to turn in an expenses report to do their job, many companies spend too much money on the process of accepting an expense claim form and managing it. That is why going to an online expense management program is a better option.

Using expense management automation programs to handle your company’s travel expenses can greatly reduce costs by simplifying the entire process. Every step of expense reporting is covered in systems, and you’ll notice a difference quickly.

Here are some of the ways it can lower costs for your business:

• The big way it will eliminate the costs of process travel expenses is simply through the increase in productivity. Every step of expense management involves effort from you and your employees. You are on the go workers have to keep track of receipts, fill out long forms, and more. Your payroll department or managers have to accept those receipts, review the information, approve or deny them, double-check to make sure that information is accurate, and then file the data. All of that means that they’re not focusing on other tasks in your company that could be boosting your revenue. When you automate, you will increase productivity and increase profit.

• Errors are reduced through automation as well, and that can help reduce overall costs in a significant way. Instead of having to worry about fines and fees associated with your expense reporting, you will know that your information is accurate.

• Issues like incorrectly figured sales taxes or improperly converted foreign currency can cost you big. With a good automation process, you will be able to get the most accurate calculations and ensure you’re not spending a penny more than you should.

• Finally, you’ll be able to get detailed reports of your company’s spending. This means that you can quickly pinpoint departments or individual employees who may be spending a bit too much while on the go. With automation, it is easy to see where your money is going, tighten up your policies and controls, and get a better handle on your expense spending in a significant way.

There’s no question that your employee expense accounts are important to them and your business. But simplifying the way you manage those accounts could eliminate one of the most costly processes from your business.

Choosing Processes to Automate

Many routine processes are good candidates for automation, like:

  • Collecting and verifying vendor invoices
  • Looking up and assigning GL codes
  • Scheduling outbound payments
  • Processing sales orders
  • Tracking shipments and managing logistics
  • Handling customer inquiries
  • Creating invoices for customer purchases
  • Collecting and entering data into disparate business systems

Some companies turn to outsourcing services to help cut these costs. Unfortunately, there are downsides, most notable, poor visibility and a lack of control. But with automation, businesses don’t have to trust these responsibilities to a third party. Companies can still handle them on their own while placing less of a burden on their internal resources.

3 Ways to Cut Costs With Process Automation

Business process automation is more than a hobby. It’s a simple, cost-effective way to optimize your business processes while reducing your spending. It also streamlines things for employees in the automated departments, making automation a win-win for everyone in your company. Even better, you start realizing these benefits immediately after automating a department. It doesn’t take long to see ROI from automation software.

1) Optimize Employee Time

Automation takes over time-consuming, repetitive tasks like data entry and matching invoices to purchase orders. Many employees are already overwhelmed by how much they have to do because of staff shortages, so automation gives them a chance to breathe and focus on the more engaging tasks. And since they’re not spending so much time on what feels like busy work, automation helps keep your tech-savvy employees happy.

Some people just think of automation as an alternative to real employees. While an automated business process does require less human involvement, it doesn’t replace the need for real people. There will still be jobs available. You’ll just be paying employees for more productive work.

2) Speed up Processing

If you can speed up processing, you can cut costs per invoice in AP and costs per reimbursement. You’ll be able to close more quickly at the end of the month. And there won’t be any more late fees for payments you couldn’t make on time.

Money saved by speeding up processing might seem insignificant at first glance. But when you take into account things like the fact that AP automation can cut costs by 250% per invoice, the savings add up. The less time you have to spend on a given process, the less impact it will have on your bottom line.

3) Gain Accurate Data

Because automation works so quickly and keeps records of every project, invoice, report, etc. you get instant access to the most accurate data available. That sort of data empowers you to make more accurate financial forecasts and manage capital projects efficiently.

The benefits you get from business process automation software far outweigh the costs. With a relatively simple, low-cost tool you reap cost-saving benefits across the board. To get a taste of what this would look like in real life for your business, contact us. We’ll set up a demonstration so you can see how automation can simplify your business processes and save you money.

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