The ever-changing business landscape has compelled retail companies to find more creative ways to be competitive in the market. It’s no longer just about offering great products and exceptional customer service. Optimising and automating business processes has now become an essential part of enabling teams to work more efficiently, eliminate errors and provide more value in their daily tasks. Accounts payable automation software, such as Lightyear, has become a game-changer for retail companies looking to automate their financial operations.
Here are four reasons retail companies should be automating their AP function:
Handling a high volume of invoices and eliminating human error
Managing a constant flood of invoices while maintaining accuracy can be challenging for retail sector businesses. As brands expand, open new stores, and interact with a growing web of suppliers, the volume of invoice handling multiplies. This often necessitates hiring additional staff, leading to soaring operational costs. Cross-referencing invoices with purchase orders and goods receipts is pivotal in retail's financial landscape. However, it becomes laborious, time-consuming, and prone to errors when done manually. It can also lead to financial discrepancies and operational disruptions from human mistakes, causing delayed payments, missed discounts, and potential supplier tensions.
To tackle these challenges, adopting AP automation solutions, like Lightyear, is a game - changer for retailers. This technology allows businesses to streamline invoice management, cut operational costs, and eliminate human error for once and for all.
Lightyear matches invoice details with purchase orders and goods receipts, ensuring 100% accuracy, thereby reducing the need for manual intervention and freeing staff from admin-heavy tasks. The result is significant time savings, reduced operational overheads, and enhanced operational efficiency. By automating the heavy lifting, your team can focus on strategic activities that drive business growth and enhance customer satisfaction.
Financial transparency
Managing payables without a reliable accounting and reporting process is like running in the dark. In the world of retail, where time and accuracy are critical, having visibility into payment data is essential for success. That's why AP automation has become indispensable for retail companies. Invoice transactions, from their inception to payment, contain a wealth of information that can be invaluable for businesses. Not only does this data help in maintaining financial transparency, but it also plays a vital role in vendor relations and dispute resolution. By recording the step-by-step history of invoice transactions, businesses can confidently reference past communications and interactions with suppliers, and it becomes a valuable asset when questions or discrepancies arise.
Lightyear serves as a gateway to seamless financial document management. Within the Lightyear ecosystem, users can effortlessly search for various document types, ensuring easy access to critical information. Additionally, the flexibility of creating custom reports empowers retailers to make informed decisions based on accurate and up-to-date data. AP automation has become an essential tool in the retail sector for managing payables effectively. By implementing Lightyear, retailers can gain unparalleled visibility into their payment data, ensuring financial transparency and fostering strong vendor relationships. Also, it allows them to make informed decisions and drive success in the competitive retail landscape.
Lightyear has brought together all functions of AP Invoice Processing in a user-intuitive way and relevant to many different business areas. Everyone from the store managers and staff through to the accounts team and our senior management and operations team now have access and visibility on all invoices sent to the business at any given time.
Streamlined approval workflows
Traditional approval systems in retail companies often involve manual routing, physical signatures, and tedious admin. This process is time-consuming and often leads to payment delays and frustrated vendors. Paper-based invoices frequently get lost or misplaced in a sea of paperwork, causing frustration and delays in invoice processing.
The Lightyear solution improves the approval process by offering a multi-tiered automated approvals workflow. With just one click, bills can move through multiple approval levels, ensuring they are ready to be paid. This streamlined approach saves time, eliminates paperwork, and prevents delays, improving vendor satisfaction and enhancing financial efficiency. Invoices are securely stored and easily accessible at any time. With a quick search, retail companies can effortlessly retrieve invoices, eliminating the hassle of manual searches and significantly reducing processing time.
Flexibility and collaboration across multiple locations
Effective collaboration between teams and vendors is vital for retail companies with multiple locations. The power of AP automation in retail companies extends beyond streamlined processes and increased efficiency. One significant benefit of AP automation is newfound flexibility. It liberates AP staff from the confines of the office or store, allowing them to complete crucial tasks from any location, regardless of physical presence.
Lightyear's AP automation solution bridges the gap by providing a centralised platform. This allows for seamless communication and collaboration, streamlining processes and ensuring consistent and timely decision-making. Whether approving invoices, disputing bills, adding important notes, or receiving real-time notifications, Lightyear's solution ensures that all stakeholders are on the same page, regardless of their physical location.
With our solution, retail staff can seamlessly review and approve invoices, be it a desktop computer, laptop, or mobile device. This flexibility ensures that AP operations can continue uninterrupted, even when team members work remotely or attend to other responsibilities outside the office.
Lightyear offers a mobile app for iOS and Android devices. This app takes collaboration and approvals to new heights of convenience, enabling users to complete tasks on the go. The mobile app allows finance teams to seamlessly collaborate with colleagues and clients, regardless of location or time constraints. From approving invoices to disputing bills, adding notes, and uploading images of receipts, the mobile app empowers professionals to manage tasks efficiently, leading to faster processing times and improved productivity.
The Power of AP Automation in the Retail Industry
AP automation reduces costs, supports profitability and enables effective financial management. By embracing AP automation like Lightyear, retailers can streamline processes, optimise working capital, reduce spending, and drive business growth. Automating AP processes empowers leaders with greater visibility across the invoice life cycle, allowing them to make informed decisions that positively impact the bottom line. Staff can strategically schedule supplier payments to capitalise on early-bird discounts or align with cash flow requirements. This optimisation of working capital ensures cost savings and increases financial agility.
Don't be outgrown by your competitors. 83% of accountants believe that to gain a competitive edge in the market, they need to keep up with the pace of technology adoption.* Move your finance department into the future and adopt AP automation to increase your team's flexibility, aid in trend forecasting, and reduce human-error.