Working in the cloud has become the norm rather than the exception. The modern workforce is mobile and works from almost any location. From routine tasks to collaborative efforts, the cloud has become a way to streamline operations and save time. Consider six impressive advantages of adopting cloud-based accounts payable (AP) automation.
Reduce the Need for Manual Processing
For many years, the AP department has processed invoices manually. The process takes extensive time and effort. Verifying invoices and getting them approved can take days or weeks. This lag could lead to late payments and costly mistakes. Plus, the AP team often rushes to meet its obligations at the end of the month. All of these hassles are eliminated by using cloud-based AP automation. As a result, the AP department has an opportunity to spend time on finding ways to save money, such as paying invoices early and leveraging early payment discounts from suppliers. Knowledgeable AP professionals can tackle more meaningful work rather than focusing on mundane tasks.
To err is human, but these mistakes can become costly to the organization. There are many reasons why a team member might overlook something important. And employers are unrealistic if they expect their employees will never make errors. Berating overworked employees creates an uncomfortable working environment. Rather than attempting to achieve human perfection, management can better direct their efforts toward the adoption of AP automation solutions. While the initial investment might include time to teach employees how to use the system, from that point forward the company will realize a notable ROI.
Ensure Regulatory Compliance
Regulations are an inevitable part of the financial realm. Failure to comply with these regulations can cost an organization significantly. A company needs to be compliant at all times to avoid penalties and protect its reputation. Ignorance is never an excuse for failure to comply with established regulations pertaining to standard accounting practices. An AP automation solution helps to ensure companies are compliant with the latest regulations.
Reduce Invoice Processing Time
Consider the time it takes for an invoice to get snail mailed and received by an organization. Then the invoice needs to be opened and directed to the AP department. Once it arrives, the information on the invoice must be verified so it can be paid. Then the invoice is forwarded to the proper party for approval. Finally, the invoice payment is rendered. A cloud-based AP automation solution can digitalize the entire process. Vendors submit invoices online for payment. The organization accesses them in real-time, so verification and approval are done in minutes rather than days. Payments are made on time, so the company does not have to pay late fees. And early payments can be made to take advantage of money-saving discounts.
The C-suite might be reluctant to adopt cloud-based AP processes because they fear security breaches. Modern solutions are highly secure and reduce the occurrence of internal and external fraud. Because financial data is accessible to everyone in real-time, transactions are transparent. If inconsistencies arise, they can be detected before the company loses money as a result of ongoing fraud. Manual processes leave room for fraud to occur for months or years before it is discovered and addressed.
Support a Mobile Workforce
From a CEO on the way to a crucial meeting to a part-time employee working at home, progressive companies support a mobile workforce. AP automation enables everyone to collaborate from any device and any location. Relevant financial data is readily available to assess cash flow, detect vendor patterns, determine consumer demand, and more.
Cloud-based AP automation is a necessity of the present rather than a possibility of the future. Within the next two years, the majority of leading corporations around the country will be taking advantage of the benefits of AP automation solutions. Find out more today to make sure your organization does not get left behind.