One of the biggest questions CFO’S and AP Managers need to discuss before implementing AP automation into their organization is: why is it so important that you take into consideration how your ERP system will be impacted when you’re upgrading your AP department from a manual to an AP automation solution?
Running Large Companies
Basically, an ERP system is responsible for linking all your company’s business processes. This includes everything from HR to procurement, finance, and sales. They all share one common underlying data set for better overall efficiency. And, these days, ERP systems are helping with the running of many large organizations, making ERP a multibillion-dollar industry.
What is the difference between cloud ERP and on-premise ERP? Basically, the latter would live on your company’s servers, making it customizable according to your needs. It’s built just for you and maintained by your ERP vendor who delivers updates an average of once, maybe twice per year. On the other hand, cloud ERP systems are standardized for the purpose of meeting multiple clients’ needs. All data is both secure and kept separated. However, the intelligence layers and applications are all shared using a common UI. All of this makes cloud ERP more affordable with more frequent updates, a faster overall innovation pace, and a huge competitive advantage.
AP Automation and ERP Integration
When you choose extensible AP automation solutions, you get the ability to choose just how intimately it will connect with your ERP. You could opt for what is known as a tightly-coupled solution or choose a more relaxed connection between those two processes. With the tighter solution, your AP and ERP systems will be directly sharing information. A looser system will be relying upon the ERP system to send info to the database where the AP processes can interact with it. It offers faster setup and is also a more inexpensive option. If your organization really needs the benefit of real-time communications between your AP Automation and your ERP systems, then it could be well worth the additional setup time and higher cost to go with the tightly-coupled solution.
Benefits of ERP and AP Automation
With both in place, your company can expect to:
- Increase payment speeds
- Take advantage of Dynamic Discounting
- Negotiate optimum rates over time
- Unshackle smart employees from labor-intensive menial tasks
- Connect applications, data, and people
- Deliver a truly effortless experience
- Achieve total transparency into the company’s spending no matter where it happens
- Have a system that’s scalable for meeting the needs of both large and small companies
- Be free to focus on other areas that matter most to the overall success of your business
An ERP system in conjunction with AP Automation is just good for business. It can mean getting everybody in your company working from just one unified information source. That’s obviously why so many Fortune 500 companies are going in this direction.