Guest Post: Automation is the Future of Manufacturing Accounting

Automation has been a major part of manufacturing for centuries, with manufacturers developing—and benefitting from—advancements in production that can help them maximize efficiency while reducing labor and production costs. Yet, even with today’s cutting-edge technology, employees in the back office still rely heavily on manual work in their roles.

Accounts Payable (AP) professionals spend countless hours performing manual, repetitive tasks such as entering invoice data, copying paper, tracking documents, and returning calls and emails about payment status. These cumbersome accounting duties impede productivity and result in unnecessary human errors.

Manufacturing organizations across the globe could automate 64% of their time-consuming activities with existing technologies. Back-office processes are ideal candidates for increased automation, which would enable organizations to become more competitive by saving and reallocating resources. Highly paid and skilled AP workers could then devote their time to more strategic and productive work, like applying their analytical skills to devising cost savings plans for the company, rather than time-consuming manual tasks.

Payment automation streamlines the payment process from start to finish and allows users to pay vendors instantly. A process that once involved multiple steps has now been simplified to two steps – uploading files and marking them as paid. Payment automation saves organizations thousands of hours each year. The organization also benefits from faster payments, enhanced business continuity, and rebates, in addition to efficiency.

Download Now! Automation Helps Manufacturing AP Departments

Manage Labor Shortages, Attract New Hires, and Retain Workers

Another major benefit of automation is increased security. According to a recent study, 40% of manufacturing companies have experienced a cyber-attack within the past year, and 38% have lost over $1M in damages. Manufacturers without a dedicated IT or cybersecurity team are prime targets for cyberattacks. A dedicated AP automation platform reduces fraud risk by encrypting payment data and requiring two-factor authentication for access.

Finance automation isn't about replacing humans. Automation is used to increase efficiency (learn more), not to replace people. AP departments are instead embracing automated systems that complement technology by allowing humans to work alongside automation. Organizations can then devote their financial staff’s time to more valuable tasks. Human workers and advanced technology combine to produce optimal results in AP departments.

Interested in learning more? Reach out to your NET1 payment processing representative for more information on Paymerang Automated Accounts Payable.