If one were to pinpoint the departments within just about any organization that could benefit the most from better performance and increased productivity, chances are the finance and accounting departments would be near the top of their list, if not at the very top. Unsurprisingly, many businesses are turning to cloud-based AP automation. These businesses are finding that cloud Accounts Payable Automation can improve cash and risk management, reduce costs, and enhance security. Here are 3 key benefits of cloud AP automation.
One of the main advantages of cloud AP automation is its ability to promote productivity within finance and accounting departments. According to a study conducted by the Aberdeen Group in August 2017, AP solutions in the cloud processed an average of 28,130 invoices per month. On the other hand, AP solutions not in the cloud processed only 9,862 invoices per month. This indicates that AP solutions in the cloud process about three times more invoices per month than AP solutions not in the cloud.
Another advantage that you can except to reap from cloud AP automation is improved efficiency. According to the same study by the Aberdeen Group, AP solutions in the cloud experienced a 31% improvement from automation when it comes to the rate of invoice processing. On the other hand, AP solutions not in the cloud only experienced an 11% improvement as a result of automation.
Finally, cloud AP solutions tend to be more timely than non-cloud AP solutions. Cloud AP solutions had an on-time payment rate of 91% while non-cloud AP solutions had an on-time payment rate of just 75%. The on-time payment rate refers to the percentage of all the invoices that are paid on time based on the payment terms.
As you can see, there is plenty of value that finance and accounting departments within all types of businesses can reap from cloud AP automation. There are a number of cloud AP automation solutions available. For advice on the best options for your organization and integration with your ERP solutions, don’t hesitate to contact us.