The real estate industry has evolved beyond maintaining portfolios and properties. Associations and property management organizations are focused on growth and revenue to keep up with demand for more commercial and residential properties. But they are also juggling the cost of maintenance, leasing, inspections, evictions and more on a daily basis, making it difficult to forge the right path toward that long-term growth.
Why It’s Difficult to Grow
While growth is a top priority, many organizations struggle to keep up with industry goals, grow revenue and expand portfolios with their limited resources. Most property managers serve at least two other roles in the organization because of small headcount. For example, a recent industry report showed that property managers selected ‘company owner’ as an additional title (42%), along with ‘realtor’ (15%), ‘office manager’ (22%), ‘accountant’ (17%), ‘maintenance manager’ (11%), or ‘broker’ (11%).
But those aren’t the only growth challenges the industry faces. When it comes to managing payments, associations struggle to streamline processes and cut costs with limited resources.
More specifically, their accounts payable processes are bogged down, wasting time and money. Ardent Partners shared a few of the top challenges faced in today’s accounts payable process:
- 41% of respondents struggle with a high percentage of exceptions – adding additional steps to properly review and route the invoice.
- 39% struggle with invoice and payment approvals, delaying payment distribution and driving up costs.
- 38% are still faced with piles of paper, often leading to lost invoices and documents, which forces a manual, time-consuming payment process.
Despite the pain points, PayStream Advisors shared that 89% of small-medium companies are still handling paper and emailed invoices.
What to Consider When Considering Automating Your AP Processes
For many associations, ePayments and payment automation aren’t foreign ideas; they’re just not top of mind. Chances are, limited money and resources are preventing your organization from implementing automated solutions. Even though accounts payable and payment automation solutions are known to improve daily duties, many property managers still have a few concerns, including the cost, learning curve and metrics for success. Here are four tips to get your association started:
Evaluate your current payment processes.
Your organization is juggling different payments including repairs, supplies, mortgages and more. Determine what part of the payment process takes the most time and how your team could work smarter.
Think about the ‘next big thing.’
Even though most small companies are still issuing printed checks, consider ePayments for better visibility and faster payment delivery. If your association offers ePayments, consider how your accounts payable department could benefit from sending more of them for your association’s benefit.
Explore simple solutions.
Find the solution that easily integrates with your accounting system and scales for growth. Cloud-based, centralized solutions should streamline the payment process without additional headcount or help from employees or volunteers. Remember, achieving your goals starts with efficiency.
Do the math.
Consider hard and soft costs that come with automation. Think about revenue, the number of invoices received and current cash flow. Don’t forget to add up how much it costs to process an invoice. Keep in mind, the journey to AP automation doesn’t have to happen overnight. Speak with an expert to learn the best place for your company to start.
Companies across the board are always exploring ways to saving time and money, and the real estate industry is no different. Automating your accounts payable and payment processes is proven to do both. Schedule a demo today to find out how AvidXchange can help your company stay focused on its long-term growth.