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Accounts payable automation represents one of the highest-ROI technology investments for senior living communities. The combination of time savings, error reduction, and improved vendor relationships delivers measurable financial impact.
Consider a typical senior living community – Assisted Living Facility (ALF), Skilled Nursing Facility (SNF), or Memory Care – processing 400 invoices monthly. In a manual environment, staff receive paper or emailed invoices, route invoices for approval via email or paper, manually enter invoice details into the accounting system, print and mail checks or manually process ACH files, and file paper documentation.
This process might consume 80-100 staff hours monthly and create multiple opportunities for errors, delays, and control failures.
Modern AP automation begins with electronic invoice capture. Vendors send invoices to a dedicated email address or portal, AI extracts invoice details automatically, the system automatically matches invoices to purchase orders when applicable, and data flows directly into your accounting system without manual entry.
This eliminates the most time-consuming and error-prone step in the AP process.
Once captured, automated systems route invoices for approval based on configurable rules by vendor, amount, department, cost center, or property. Approvers receive emails with invoice details and approve with a single click. Escalation rules ensure invoices don't languish in someone's inbox. Audit trails capture every approval and rejection.
Communities report approval cycle times dropping from 10-15 days to 2-3 days with automation.
After approval, automation continues through payment processing. Systems generate payment batches automatically, offer flexible payment methods including ACH, virtual cards, and checks, support early payment discount capture, and provide real-time visibility into payment status.
Many communities reduce check processing by 80% or more, cutting costs and accelerating payments. Senior living financial automation is no longer a nice-to-have, it’s necessary to remain competitive.
Automation doesn't eliminate the need for human judgment; it focuses human attention where it matters most.
The system flags invoices missing purchase orders, amounts exceeding approval thresholds, duplicate invoice numbers, or vendors not in the system. Staff handle exceptions while routine invoices flow through automatically.
Automated AP systems improve vendor relationships through faster processing and payment, self-service portals for invoice status, electronic payment with remittance detail, and easy access to payment history and 1099 information.
Vendors appreciate working with communities that have efficient, professional AP processes.
Manual AP processes create fraud vulnerabilities. Automation provides built-in controls including required approvals for vendor setup, invoice posting,and payment, duplicate invoice detection, segregation of duties enforcement, and comprehensive audit trails.
Senior living communities have experienced significant fraud losses through compromised email, fake vendor schemes, and altered invoices. Automation makes these frauds much harder to perpetrate.
Organizations implementing AP automation typically achieve 70-80% reduction in invoice processing time, 50-60% reduction in processing cost per invoice, elimination of most duplicate payments and errors, capture of early payment discounts worth 1-2% of vendor spend, and improved staff satisfaction by eliminating tedious data entry.
For a community processing $3 million annually in vendor payments, automation might deliver $50,000-$80,000 in annual savings and efficiency gains.
AP automation delivers maximum value when integrated with your financial management system. Sage Intacct's native AP Automation or integrated third-party solutions provide seamless data flow, real-time visibility, consistent reporting, and unified audit trails.
Successful AP automation requires vendor communication and onboarding, approval workflow design, payment method selection, and staff training on new processes.
Organizations typically achieve full implementation within 60-90 days and realize ROI within 6-12 months.
Leading-edge AP automation now includes AI-powered invoice processing, dynamic discounting and supply chain financing, sophisticated spend analytics, and predictive cash flow modeling.
These advanced capabilities turn AP from a back-office function into a strategic advantage. Schedule a consultation with Blytheco experts to explore how Sage Intacct's cloud-based financial management system can transform your senior living operations.
Check out the Journey to a New ERP, or reach out to solutions@blytheco.com to begin your journey with an ERP built for your industry.
Sage Intacct Solutions Engineer
Todd has over two decades of experience in marketing, sales, presales, and professional services and held roles as Director of IT and CFO. Throughout his career, he successfully established and developed nine practices from the ground up. This experience equipped him with a proven track record of implementing and managing various accounting and ancillary software solutions, including Sage Intacct. He leverages his vast business and software background to lead companies to successful and efficient solutions.
