AP Automation Helps Finance Directors In Education Tackle Challenges
AP Automation Helps Finance Directors In Education Tackle Challenges
As a Finance Director in the education sector, there are many challenges related to digitisation, changing regulations, and persistent underfunding. Adopting AP automation can help Finance Directors navigate these obstacles, streamline financial processes, enhance efficiency, and ultimately drive positive financial outcomes for educational institutions.
Navigating digitisation
Navigating digitisation
With the ever-evolving technology landscape, knowing which new software solution to pick and how to implement it without disruption is a challenge that many face. It can be overwhelming to decipher which solutions will integrate well with existing systems, which will solve for the correct efficiency gaps and if the investment will be worthwhile in the end. Then of course there’s the element of staff buy-in. Whilst some will be open to new tech and will embrace change with open arms, others could be more resistant to change, making implementation difficult.
When implementing a new software, the key is to look for one that offers excellent customer service and supportive onboarding. A software provider that can confidently coach accounting staff will alleviate internal resistance and ensure a smoother transition toward digitisation. It is of course crucial to achieve the right product fit and for the solution you choose to be able to evolve with the education institution. Furthermore, recognising where your critical gaps are that the software needs to solve for, rather than trying to automate everything is an important step to narrowing down the overwhelming amount of options available.
Staying on top of changing regulations
With new laws and regulations being introduced regularly, it is an ongoing and sometimes arduous task for financial leaders to ensure that their organisations fully comply with all the evolving requirements and standards in the industry. AP automation provides additional security via a variety of features including two-factor authentication, bank detail checking and ISO 27001 certifications. Additionally, AP automation can help by providing a clear audit trail and ensuring all transactions are correctly documented and compliant with relevant laws and regulations. This has significant benefits in terms of centralising data and providing accountants with a single source of truth which is much harder to achieve with paper-based systems. With these factors combined, accounting professionals can experience improved communications, work more collaboratively and experience increased peace of mind as a result of technology.
Managing education funding constraints
Managing education funding constraints
Education institutions face funding challenges impacting the quality of education and staff conditions. According to UNISON, the public service union, school funding in the UK remains significantly below 2010 levels, putting enormous pressure on Finance Directors. Rising energy and catering costs are adding to the burden, with some secondary schools facing additional charges of up to £500,000 this year. This equates to the cost of employing around ten teachers. Because of these constraints, budgeting is becoming increasingly difficult and with government funding for energy costs reducing or stopping all together with unclear timelines as to when, planning may become even more complex.
As a result, finance teams are working tirelessly to find solutions to these issues, but it takes a lot of work. The good news is that AP automation can help save up to 80% of costs. On average, the manual processing of an invoice in the UK costs between £12 and £20. AP automation reduces that to just 79p. By processing just 100 documents per month, you can save over £23k annually. These savings can then be allocated to help your budget go further.
Dean Close, a co-educational school in central Cheltenham, has provided quality education to children aged two to eighteen since 1886. In their ongoing pursuit of excellence, the finance team at Dean Close transitioned from a manual invoice approval process to a more efficient digital approach with Lightyear. Their digital transformation reduced manual data entry from 30 hours to less than 2 hours per month, a remarkable time-saving of 93%. This, in turn, allowed their finance teams to allocate their resources and expertise towards more strategic and value-added activities, keep a competitive edge and drive business growth and success. Read more of their success story <here>.
Dean Close, a co-educational school in central Cheltenham, has provided quality education to children aged two to eighteen since 1886. In their ongoing pursuit of excellence, the finance team at Dean Close transitioned from a manual invoice approval process to a more efficient digital approach with Lightyear. Their digital transformation reduced manual data entry from 30 hours to less than 2 hours per month, a remarkable time-saving of 93%. This, in turn, allowed their finance teams to allocate their resources and expertise towards more strategic and value-added activities, keep a competitive edge and drive business growth and success. Read more of their success story <here>.
"It is not daunting to switch to Lightyear; the care is taken to work together throughout all of the implementation stages. The benefits, once Lightyear is installed, far outweigh any manual system."
Debbie Tilley, Purchase Ledger Manager at Dean Close School
In summary, AP automation is a powerful tool that can help educational finance teams collaborate more efficiently, automate tasks, and streamline workflows, resulting in up to 80% savings in both time and costs. As the highest-rated accounts payable automation app across all major app stores, Lightyear can assist your team in boosting your efficiency, reducing costs and freeing up resources for more critical tasks.
