In today’s ever-evolving corporate landscape, financial sustainability isn’t just a buzzword—it’s a necessity. Integrating finance sustainability into your company’s strategies is vital for long-term success and environmental responsibility.
What is Finance Sustainability and Why It Matters
Sustainable finance entails a strategic approach that combines financial growth with ethical responsibility, particularly environmental stewardship. As companies strive for long-term stability and societal impact, sustainable finance is increasingly becoming an imperative rather than an option.
Finance Sustainability vs Traditional AP Processes
Corporate sustainability is an integral part of the objectives of modern companies. However, the conventional accounts payable processes stand as roadblocks, utilizing outdated procedures that have lost their edge with the advent of electronic technologies. In contrast, sustainability finance strategies aim to harmonize financial activities with environmentally friendly practices.
AP Automation: A Catalyst for Achieving Sustainability Goals
How precisely can an AP automation solution like Kefron AP assist companies in fulfilling their environmental commitments and achieving their sustainable finance goals? The automation of these processes substantially decreases the administrative burden and minimizes wastage, thus aligning the Finance Teams with the sustainability goals of the company.
What’s Wrong with Legacy AP Processes?
Traditional ‘Legacy’ AP processes are laborious, time-consuming, and costly. For instance, even electronic invoices have to be printed, manually stamped, coded, and then hand-delivered. Such procedures not only risk losing invoices but also make timely approvals dependent on the physical presence of designated approvers.
Financial and Environmental Costs of Legacy AP Processes
Research indicates that the Accounts Payable process could use upwards of 200,000 sheets of paper per year—equivalent to felling more than 400 trees. Additionally, the cost of maintaining such practices, including printing expenses, can amount to around £7,500 annually.
Benefits of AP Automation in Elevating Finance Sustainability
Through the benefits offered via AP automation, several operational issues can be resolved or mitigated, such as GDPR compliance concerns, time constraints for necessary data analysis, and bottlenecks affecting overall operational efficiency. The automation provides a more streamlined, ‘greener’ process that directly contributes to sustainability finance goals.
- Improves Visibility & Control: In Legacy AP Processes, certain documents remain hidden, creating a misleading scenario. Automation ensures that all documents are accounted for, tracked, and easily retrievable.
- Enhances GDPR Compliance: The paper-based approach risks violating GDPR by exposing sensitive documents. Automated systems maintain the confidentiality of data, thus boosting GDPR compliance.
- Strengthens Supplier Relationships: Delays in the AP process can strain supplier relations. Automation alleviates such delays, improving and possibly expanding existing business relationships.
- Saves Time: Automation lifts a significant burden off the shoulders of AP teams by automating time-consuming tasks like invoice scanning and data entry, freeing up staff for more meaningful work.
- Enhances Accessibility: The ongoing pandemic has not impeded the automated AP processes, ensuring that invoices can still be processed and approved remotely, thereby maintaining business continuity.
Kefron’s collaboration with the renowned outdoor clothing brand Regatta has significantly aided the British company in accomplishing their sustainability finance goals through The Honesty Project. To hear more about AP Automation role, click here.
For further information on how AP Automation technology can boost your finance sustainability efforts, click here.
