3 Reasons to Move Invoice Automation to the Cloud
If it seems like everything is happening in the cloud these days – it’s not your imagination. Organizations of all sizes are recognizing the many advantages of cloud computing for business. Aberdeen research found from 2017 to 2018, “on premise” ERP dropped from 21% to 12%, and SaaS increased from 21% to 36%. And according to Gartner, 40% of new ERP deployments for large businesses will be cloud SaaS by 2021.*
Accounts payable (AP) automation solutions are heading to the cloud, too. And the organizations with cloud-based solutions are enjoying rapid deployment, higher levels of performance, cost savings and greater visibility into their AP processes.
Aberdeen explored the benefits of moving AP automation – specifically invoice processing – to the cloud in a recent report: Achieving Accounts Payable Excellence in the Cloud. Three benefits of cloud-based invoice automation from their findings include:
1. Fewer invoice processing bottlenecks
Vendor inquiries and invoice discrepancies are major bottlenecks. Aberdeen found that AP solutions in the cloud are more likely to have capabilities that improve inquiry management and expedite discrepancy resolution. Cloud-based solutions offer more collaboration and centralization functionality, such as mobile capabilities, which help manage inquiries or even provide the vendor with self-service tools to answer their own questions.
Aberdeen also found users of AP solutions in the cloud have a greater ability to match invoices to purchase orders and have access to a transaction audit trail – both of which help to resolve discrepancies quickly.
2. Improved Supplier Interactions
Faster payments make suppliers happy. Cloud-based invoice automation helps expedite payment processing. Aberdeen found that solutions in the cloud offer tools that speed payment processing. Users of AP solutions in the cloud are 3.7 times more likely to remit direct payment to vendors electronically. Cloud-based solutions are also more likely to have features like automated reminders and dashboards summarizing AP status to support timely payments. When suppliers are paid on time, or early, organizations can take advantage of discounts, better relationships and improved cash flow.
3. Improved performance all around
It’s not surprising that Aberdeen found AP solutions in the cloud are preferred by Best-in-Class financial management organizations. After all, they are expediting payments and reducing time spent resolving inquiries and discrepancies. They have 91% on-time payment rate, happier suppliers and more accurate cash flow projections.
Cloud-based invoice automation solutions, such as Kofax ReadSoft Online™, offer more agility and can be used by organizations of any size. They are fast to deploy and don’t require investments in hardware. Financial organizations don’t have to rely on IT and upgrades and enhancements are provided more readily to keep the solution up-to-date. For these reasons, AP solutions in the cloud also mean organizations see a faster return on their investment.
There's ample evidence showing that solutions in the cloud provide significant advantages that cannot be ignored.
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*Gartner, “Market Guide for Service-Centric Cloud ERP Solutions,” 2018