Hospitality
The Hospitality Industry, Like Many Others, Is Facing Numerous Challenges In Today’s Rapidly Changing Business Landscape. Automation, Particularly Accounts Payable (AP) Automation And Robotic Process Automation (RPA), Can Help Hotels And Restaurants Address These Challenges And Improve Their Operations In Several Ways
The Hospitality Industry may face several challenges in their
accounts payable (AP) process, including:
High volume of invoices
With a large number of suppliers, hospitality companies may receive a high volume of invoices, leading to increased manual workload.
Complex pricing structures
The Hospitality Industry often deal with complex pricing structures, such as volume discounts and promotional pricing, making it challenging to accurately process invoices.
Short payment terms
Many hospitality suppliers have short payment terms, leading to a high volume of payments to be processed in a short period of time.
Integration with property management systems
Hospitality companies often have multiple properties and may require integration between invoicing systems and property management systems to track expenses and allocate costs.
Sales tax compliance
Hospitality companies may be required to comply with complex sales tax regulations, requiring accurate information on invoices and in the AP system.
Management of travel and entertainment expenses
Hospitality companies often incur significant travel and entertainment expenses, making it important to have a robust and efficient AP process to manage these costs.
Financial reporting
The hospitality industry is highly competitive, making it important to have accurate financial reporting to track performance and make informed business decisions.
AP (Accounts Payable) data entry errors can lead to several issues, including:
- Delayed payments: a slow or inefficient AP process can result in payment delays, impacting vendor relationships and potentially leading to late payment fees.
- Increased manual workload: manual processes can result in increased workload for employees, leading to decreased efficiency and increased costs.
- Inaccuracies and errors: manual processes are prone to inaccuracies and errors, leading to incorrect payments, missed discounts, and incorrect financial reporting.
- Lack of visibility: a poorly managed AP process can result in a lack of visibility into the status of invoices and payments, making it difficult to track the progress of payments and approvals.
- Inefficient use of resources: manual processes can result in the inefficient use of resources, leading to increased costs and decreased efficiency.
- Compliance risks: incorrect information on invoices and in the AP system can result in non-compliance with accounting and tax regulations, potentially leading to penalties and reputational damage.
- Security concerns: manual processes can increase the risk of fraud and theft, as well as the risk of sensitive financial information being lost or misfiled.
- Integration challenges: manual processes can result in data silos, making it difficult to integrate with other financial systems and share information between departments.
It’s important for companies to have a robust AP process in place to minimize the risk of manual errors and reduce the costs associated with them. Automating the AP process can help to reduce manual errors, increase accuracy, and improve overall efficiency.
The cost of manual accounts payable (AP) errors or keying mistakes can be significant and can have a major impact on a company's bottom line. Some of the costs associated with manual AP errors include:
- Overpayment: manual errors can result in overpayment, leading to a loss of funds.
- Reconciliation: the process of reconciling manual errors can be time-consuming and resource-intensive, leading to increased costs.
- Credit damage: manual errors can damage a company's credit score, making it more difficult to secure favorable payment terms with suppliers in the future.
- Loss of discounts: manual errors can result in a loss of discounts, as suppliers may not grant additional discounts for payments made in excess of what is owed.
- Vendor relations: manual errors can damage vendor relations, as suppliers may view it as an indication of a lack of professionalism or attention to detail.
- Auditing and reporting: reconciling manual errors can be complex, making it difficult to produce accurate financial statements and comply with auditing requirements.
- Late payment fees: manual errors can result in payment delays, leading to late payment fees and damaging vendor relationships.
Benefits of the Centreviews AP Automation Solution for Hospitality
Cloud Infrastructure
Work Anywhere: Process and approve invoices with CV solution at any time, from anywhere, and on any device.
Easy Capture: Invoices and bills are automatically captured into the platform and immediately available for processing.
Around Clock Automated Coding: Billy the Bot, our AI helper equipped with advanced technologies accurately extracts data from invoices in real-time to reduce manual data entry and errors.
Communicate & Approve: Edits, attachments and questions asked and answered on top of the invoice enable approvers to review and approve faster and be held accountable for bottlenecks.
Invoice Tracking: No more lost or forgotten invoices with advanced tracking, automatic notification reminders and ability to mark urgent invoices.
Audit-Ready: Either in-house or external, auditors can be granted limited access to search any invoice and its accompanying information.
Seamless Integration: Securely connect our Centreviews bots with your accounting system to sync invoice data, POs, payment information and more.
Fast Implementation: With no lengthy implementation or extensive training required, you’ll be up and running in days, not months.
The hospitality industry can benefit from AP automation and RPA by reducing manual labor, increasing efficiency, improving compliance, enhancing customer experience, and ultimately, helping to improve the bottom line.
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