Integrate ERP With AP Automation To Unlock Strategic Value 

ERPs are important in optimizing the accounting and financial operations of an organization. It is surveyed to be a core system with a centralized source of information that keeps the record of all the data across all the departments. 

Companies are now analyzing the need of extending their functionality of ERP solutions to specific focused areas such as payroll management, T&E, tax audit, and accounts payable. 

And now most of them are turning towards ERP combined with Accounts Payable 

(AP) automation solutions to harness the abilities of both to enhance working capital management, reduce overall operational costs, and improve the productivity of the organization.

Research agencies have predicted that the global ERP market will grow $70.3 billion by 2025, which is double-digit percentage points. 

Integration cloud-based solution of ERP and AP automation offers transparency in workflow, invoice and payment management, and also reduces frauds. Amalgamating ERP with robust AP automation develops a system that can significantly reduce errors, such as duplicate invoices and offers seamless innovative payment methods. 

Unlocking the hidden inefficiencies

Small and medium-sized companies are inducing AP automation to drive impressive growth. According to Next-Gen AP Automation Tracker states, “Implementing cloud-based ERP software has appealing benefits, but industry analysts find most companies lack the comprehensive AP capabilities necessary for efficient record-keeping or rapid invoice and payment processing.”

Many companies are ignoring AP automation capabilities’ when upgrading their ERP software platforms.

But major industry developments are outpacing the legacy adhering organizations. 

Such companies are facing – 

1. Fraud threats:

Firms and financial institutes are looking out for ways to stay ahead of digital fraudsters. Fraud experiences have jumped this year to 60 percent more, according to a survey from Bottomline Technologies and Strategic Treasurer. 

And account payable departments are the prime victims of such frauds, and AP automation is a strong defense system against them. 

How AP automation can help?

• Audit Trails: Even though it cannot necessarily avoid fraudents, it can provide humongous data that you need to alert a client or stop a fraudulent activity. AP automation can help recognize if invoices are missing, vendor info has public emails on Google or Yahoo, if there are any dramatic changes in vendor pricing, Rounded invoice values, Approved amounts just underneath approval limits, and a lot more. 

 

• Access Control: With AP automation you can have control over authorization. This includes not only includes, allowing different team members access to data, but also limiting their functional capabilities.

You might have some employees who can approve invoices, but there might be some to whom you want to give only read-only access, limiting their ability to make changes. With AP automation, access can be controlled digitally making sure that the members of your team can have access to tailored authorization according to their positions. These functionalities include – restricting the ability to modify details, limiting access to vendor data, disallowing approvals, and preventing modification in invoices. 

• Workflow and Rules 

An efficient workflow is the one that is consistent. Paper-based workflows are inefficient, require pre-approval, and not immune to fraudents. 

Also, reviewing each and everything every time is not possible for every accountant is not possible. Thus AP automation can help in – exception handling, multi-level approvals, individual approvals, automatic invoicing, and PO matching digitally. 

2. Cloud Computing 

Cloud computing offers scalability, flexibility, and agility. IDC has found out, cloud-based financial application demand is outpacing that of on-premise applications. And companies of all sizes want to digitally shift to this technology. People are now demanding every business to function every time and from anywhere. This is where AP automation steps in. 

Service centric organizations are shifting towards the cloud. Since specific advantages include –

• • Speed – AP solutions improve inquiry management and expedite discrepancies. A seamless solution that can match invoices to the purchase order offer fast-paced transaction deliveries.  
  • Reduced entry cost – A subscription-based service removes expensive hardware requirements and makes AP automation more affordable. 
  • Quicker Implementation – AP automation set up can be done in a few hours and there are no additional hardware installations required. 
  • Scalability – With AP automation your helping hand, you can simply purchase what is required and easily add on new components whenever required. The automation is specific to your requirements and can add to your system without adding to the underlying infrastructure. 
  • Improved Supplier relationship – The cloud has a faster rule-based system, thus easily clearing invoice approvals, and exception processing. This optimizes the overall processing cycle time, reduces late payment penalties, early payments, and forges better relationships.
• 24/7 availability – The cloud delivers around the clock capabilities, with less downtime, more support, and constant performance. 
• Mobility – You can easily access all AP functionalities on mobile devices by improving efficiency and insight, and also allowing team members to work seamlessly.  

When leaders were interviewed and asked what mattered the most in a service-centric organization they stated,  Agility mattered 75 percent, speed of implementation 74 percent, and cost savings 73 percent as the top three reasons. Many others included simpler maintenance 71 percent, automatic upgrades (69 percent), 70 percent immediate access to new features, and innovation (68 percent).

How to evaluate cloud-based AP automation for your business. 

• Reliability
• Rapid deployment
• Turnkey implementation
• ERP integration
• A customizable and secure solution
• Multi-language support 
• Currency support
• Approval workflows
• Analytics
• Support for electronic invoices
• Dedicated cloud operations team

3. Ideal for media agencies 

Since media agencies always look to strengthen their account payable process and supplier relationships. As agencies have to handle a lot of invoice data, communication channels, branding, media services, analytics, marketing, and more, they require a seamless system to work on their AP. 

AP automation process encourages the media company to integrate automation to their departments. This reduces data entry tasks, streamline invoice data, and shifts employees to more creative tasks. The agency can also strengthen their vendor management, reallocated employees to high value added tasks, and also eliminate data entry work. 

The agencies can achieve benefits like – 

• Reconciliation
• Client-billing
• On-time invoice creation 
• discrepancy resolution process
• Instant responses to client inquiries

AP Automation from Payable to Payment

Payable
Automating Invoices	Invoice data capture Digitize paper-based invoices Reduce manual input errors
Streamlining Approvals	Faster workflow processes Match invoices, POs Expedite invoice review, approvals
Integrating ERP	Faster invoice tracking Locate related documents Enhance visibility
Transforming Payment Process	Reduce dependency on paper checks Adopt more secure electronic alternatives, including ACH and virtual card solutions Increase transparency
Onboarding	Reduce onboarding errors due to manual input Collect preferred payment methods for suppliers
Optimizing Workflow	Increase spending oversight Greater cash flow visibility Reduce costs and earn rebates Increase collaboration opportunities with AP teams and treasurers
Payment

 

ERP + AP Automation – Adding power to your business system

Integrating cloud-based ERP software has amazing benefits, but research analysts find most organizations lack the comprehensive Account Payable capabilities needed to record-keeping in an efficient manner or rapid invoice and payment processing. 

Account Payable automation eazes the invoicing process to an extent that cuts out the cost of processing a single invoice entry to around $2.74, which is much less than the average industry cost of $15.02. Also, the time required to process an invoice also drops from 10.3 days to 3.5 days. 

With AP automation it is seen that ROI across the entire business landscape has increased significantly. Hence, it has become an appealing option for chief financial officers and treasurers to make their AP department profit centers.