There is probably no other area in any organization that can benefit from increased productivity, centralized data, and financial savings than finance and accounting departments. And, nothing can successfully do all of that like cloud-based AP Automation. More and more businesses are discovering these days that Accounts Payable Automation, especially in the cloud, can be cost-effective by improving risk and cash management, freeing up internal resources and being generally more cost efficient while also enhancing security.
In spite of all of the positive feedback from companies who have already gone with cloud-based automation, however, it still seems that finance departments have historically been much slower in adopting technology that is cloud-based than other departments. This may very well be due to their security concerns. Initially, there was a certain amount of concern regarding the security of cloud-based AP Automation but top SaaS providers have repeatedly shown that they often have security that is far superior to their hosted counterparts. And, they appear to invest more in IT security as well. The fact is, that integrated cloud-based solutions are more secure than ever, adding data accuracy, expediency, and saving money to the other ample benefits of cloud-based AP Automation and E-Invoicing.
So, it’s fairly obvious that the proof of how well cloud-based Accounts Payable Automaton works for numerous companies is, of course, in the overall performance. And, with a 20 percent savings across the board, as well as automated invoice processing that is an average of 4.24 times quicker when it is cloud-based as compared to non-cloud based, it seems that it’s here to stay and in a big way. As more organizations switch over to cloud-based AP Automation and extol the virtues of faster invoice processing at lower costs, perhaps more will follow suit. There certainly are enough valid reasons to do so.
According to recent research conducted by the Aberdeen Group, cloud-based AP Automation’s benefits:
- Reduce manual processing
- Reduce processing costs
- Satisfy regulatory compliance
- Reduce average invoice processing time from 11 days to less than 3 days
- Reduce average invoice processing cost from $10.08 to $8.10 each
- Reduce the exception rate from 17 percent to 12 percent
- Reduce the percentage of past due AR from 12 percent to 6 percent
Keir Walker: Bring Invoice Processing Cost Back to Earth with AP Automation in the Cloud: http://aberdeen.com