5 Signs Your School Needs an AP Automation Overhaul
In educational institutions, big or small, streamlined financial operations are the key to maximising efficiency and resources whilst maintaining compliance. Yet, many schools are burdened by legacy practices and outdated accounts payable (AP) processes that take up time, elevate costs and expose the school to risks. Here are five signs that indicate it may be time for your school to embrace digital transformation.
1. Your AP Team is Overwhelmed by Manual Processes
In modern-day workplaces, relying on paper-based invoices and approvals can be more than just time-consuming and risky. Schools dealing with a high volume of vendor payments, orders and invoices can find their accounts payable teams overwhelmed by piling workloads and unnecessary administrative work, leaving minimal time for value-adding financial planning. Managing physical documents creates significant backlogs, especially during peak periods like the start of the school year.
Automated AP software can streamline document handling, replacing physical paperwork with digitised workflows. Embracing digital solutions not only saves paper and storage space but also speeds up approval, reduces human error, and enhances data security. For example, Salesian College achieved a 95% reduction in printing after implementing AP automation, cutting down on expenses and waste while improving efficiency. If your AP team is struggling with manual processes, the benefits of AP automation could be the solution to lighten their workloads.
2. Late Payments and Missed Due Dates Are Common
Late payments and missed due dates frustrate suppliers and can damage critical relationships. For schools, consistent delays in payments can lead to lost early payment discounts and potential disruption in essential supplies and services. If your AP team frequently struggles with managing vendor relationships and meeting important due dates, it could be a sign that legacy systems aren't keeping up with your school's growing demands.
Late payments are commonly caused by legacy system bottlenecks involving manual approval and review processes. AP automation platforms can streamline the payment process and reduce delays by sending reminders for necessary approvals and scheduling payments. This feature can help schools maintain strong relationships with suppliers and ensure timely and consistent access to resources.
3. Financial Data Visibility is Limited or Delayed
Real-time visibility into financial processes is a crucial component of school operations. When managing budgets and multiple departments, schools that rely on manual processes may notice a trend of waiting for end-of-month reconciliations to gain a complete picture of their financial health, which limits their ability to make proactive decisions.
An automated AP system can provide real-time insights on invoices, purchase orders, and payments, enabling team leads to monitor spending, anticipate cash flow needs, prevent budget overruns, and identify trends. Enhanced data visibility also supports informed decision-making, as department heads can track spending and identify potential signs of overspending before they happen, giving enough time to make adjustments.
4. Audits and Compliance Efforts Are Time-Consuming and Complex
With many strict financial regulations and audit standards, schools face increasing pressure to comply with them. When records are scattered across multiple locations or even formats, manual AP processes can make compliance an uphill battle. If your finance team spends considerable time and effort gathering documents, tracking approvals, and preparing audits, it may be time to upgrade.
AP automation software simplifies the audit process by keeping all records in one secure location with easily searchable documentation. With automation, every transaction has a clear digital trail equipped with approvals, timestamps, and payment records, ensuring complete transparency about when, where, and who performed actions related to an invoice. Schools can significantly reduce auditing periods and eliminate the risk of missing critical information using an automated system.
5. Manual AP Tasks Are Impacting Employee Satisfaction
Finance staff often need more time to complete unnecessary and repetitive manual tasks such as data entry, filing, and tracking down approvals. These tasks are time-consuming and can prevent staff from focusing on value-adding and strategic financial planning. These roadblocks can negatively impact employee satisfaction and lead to turnover.
Automating routine AP tasks allows teams to spend less time on administration and more time focusing on strategy and projects that add value to the school. This shift also fosters a more collaborative work environment, where teams can collectively focus on budgeting, forecasting and long-term financial planning. User-friendly accounts payable automation platforms like Alii have shown high adoption rates among staff due to their intuitive design, which enhanced overall job satisfaction and retention.
The Bottom Line: Modernise AP, Empower Your School
If any of these signs sound familiar, it's time to consider an AP automation overhaul. Transitioning to an automated solution enables schools to streamline processes, reduce costs, and enhance compliance, all while creating a more productive and satisfied finance team.
A comprehensive AP platform designed specifically for schools can be a game-changer, saving time and resources while promoting a more sustainable approach to financial management.
Is your school ready for a more efficient AP journey? Contact Alii to learn how we can help you transform your finance operations and empower your AP team.