Can Payables be 100% Online?

Cloud automation has changed the way people live and work, including cloud-based, online accounts payable solutions. Global circumstances proved the necessity to migrate to the cloud to support remote workers and remain productive. As a result, companies discovered the advantages of working in a secure cloud environment from any device and location.

But is it possible to have one hundred percent online accounts payable? When you consider how late payments or failing to pay vendors can interrupt productivity, it becomes clear pretty quickly that the matter needs to be taken seriously. Fortunately, cloud AP solutions have been proven to keep operations running smoothly over the last several years, whether in normal day-to-day or during times of natural disasters or pandemics.

Moving Beyond Spreadsheets

A few short years ago, many companies still relied on antiquated processes such as spreadsheets and manual invoice processing. As a result, vetting vendors, making payments, and issuing reports was a time-consuming process that was subject to inevitable human error and took valuable time away from more strategic initiatives. Plus, slow payments hinder vendor relationships, and companies miss opportunities for early payment discounts

And slow payments continue to be a top pain point for businesses today, necessitating an upgrade to their B2B transactions and other essential processes. Plus, there is an increasing need to support remote workers to remain profitable in any global circumstances and attract top talent, as many employees now prefer flexible schedules. 

Cloud automation eliminates time-consuming manual tasks, enabling the AP team to emerge from the back office to focus on money-saving opportunities. For example, touchless automation handles invoice payments and reporting to improve vendor relationships. Also, negotiating early payment discounts with suppliers lowers production costs and helps increase profits. For example, consider an organization making $500 million in vendor payments annually, and 50 percent of the payments are eligible for a 1 percent discount. The total available discounts translate into a whopping total of $2.5 million. 

Problems with Partial Automation 

As organizations realized the inevitable migration to the cloud, many implemented partial AP automation systems. However, partial automation leaves gaps in businesses handling AP and other departments. For example, consider the maturation with one-off systems to manage issues as they arise instead of an end-to-end system under one user interface. 

For example, when relying solely on an ERP, adding a separate stand-alone capture solution, and adding a separate supplier portal, it all adds up to many systems that are not communicating with each other. As a result, invoices and data are lost in the shuffle. In addition, partial automation is not scalable, creating room for costly errors. 

Plus, software needs updating, while cloud automation updates automatically, ensuring optimum performance without human intervention. However, partial automation is still dependent on time-consuming manual tasks that are prone to human error. End-to-end automation provides a holistic invoice through payment solution that gives organizations superior customization, control, and visibility of the payment process. 

Eliminating Manual Processes

Cloud automation aims to eliminate tedious manual processes for maximum efficiency and accuracy. In the past, issuing monthly, quarterly, and annual reports was a time-consuming task. With automation, real-time data and reporting are at a user’s fingertips to make crucial financial decisions when it matters most.

Also, procurement, AP, and management work together seamlessly in the cloud, regardless of destination or device. Automating the accounts payable process can bring procurement and finance closer together, encouraging collaboration and compliance across both to improve overall operations.

Working with a respected cloud AP solutions provider is crucial to eliminate costly manual processes and achieve complete automation. Fully automated procurement and AP processes streamline purchase-to-pay, creating reports for visibility into financial to help guide management decisions.

Making a Successful Transition to Online Accounts Payable

The first step to making a successful transition to online accounts payable is working with team members to discuss the implementation of automation. Some team members might be accustomed to old-fashioned methods and be resistant to change. However, highlighting the advantages and benefits of automation helps get everyone on the same page, especially when team members discover it improves efficiency and work quality.

The next step is to familiarize the team with automation and provide training to maximize its potential. A valued partner often assists in this onboarding process. Automated training sessions and assistance help team members learn automation tools quickly to transition to online accounts payable successfully.

Finally, automatic updates ensure the system operates optimally without time-consuming human intervention. Always verify the organization is implementing a complete AP automation to go fully online and support remote work in a secure environment. Plus, security in the cloud is superior to protecting privacy and detecting potential issues before they become costly problems.

Relationship Management with AP Automation

Beyond supporting procurement, AP automation also enhances relationship management. For example, vetting vendors is a detail-oriented process and can take weeks or months to complete manually. Automation takes a fraction of the time to vet vendors and maintain timely payments. Both make it easier to maintain positive vendor relationships.

The ROI for investing in cloud automation is evident in the supplier vetting process, from improved vendor relationships to money-saving discounts for early payments. Consider the current supply chain and how organizations have to redesign where they get their goods as prices increase or supplies are unavailable to meet production deadlines. How does an organization handle the influx of new suppliers on board? Is each vendor being thoroughly vetted, and are the terms for pricing and goods correct?

The answers are easy to understand when automating accounts payable helps transform data collection into a tool for effective relationship management. Selecting the right vendors and verifying accurate terms positively impacts production and profits.

So, to answer the question if payable can be one hundred perfect online - yes! Online accounts payables solutions provide superior visibility, flexibility, and accuracy to improve vendor relationships and increase profits. In addition, cloud automation has become the global standard, and failing to implement it means being left behind.