The economic whirlwind of the past few years has forced even the savviest of companies to rethink how and where their money is spent. Increasingly, the microscope is being placed on internal back-office processes, seen as prime candidates for strategic cost-cutting initiatives. Perhaps unsurprisingly to many who work within the department, accounts payable (AP) has emerged as an area ripe for improvement.

Most companies running (ERP) systems are all-too-familiar with the challenges of conventional paper-based AP processes that keep AP staff from focusing on their primary task -- accurate and timely closing, avoiding late payments, etc. Although ERP platforms are effective tools for archiving critical business data, most simply lack the capability to support the processes of each invoice transaction (e.g., receipt, review, approval, etc.). As a result, these repetitive tasks are often done through manual human intervention. Visibility and productivity remain low while error rates go up. What's more, financial planning, vendor relationships and even regulatory compliance efforts can suffer as well.

WALL STREET BEAT:

Rather than adding headcount or additional infrastructure, more and more forward-thinking companies are stemming the negative effects of paper-centric processes by leveraging .

Automated workflow is not a new concept. In the AP arena, however, it has long been regarded (and proven) to be an under-utilized technological solution. A 2012 study by The Institute of Financial Operations found that the majority (39%) of the 100 AP professionals surveyed say that paper-based invoices still make up 90% or more of their total volume. However, with the need to maximize operational functionality at an all-time high, and more customized solutions available, the treasure-trove of potential in electronic workflow is rapidly gaining attention. Results from the same 2012 study indicate that, when asked, "Do you use a workflow solution?", the majority (nearly half) of the respondents said, "Yes."