It is now widely understood that organisations can improve performance and efficiency by automating various tasks and processes. Invoice automation is one task that can bring significant benefits for busy AP departments in large organisations.
What Is Invoice Automation in the Cloud?
Invoice automation in the Cloud is the process of automating the creation and payment of invoices for services without having to implement any software on your infrastructure. Cloud Invoice Automation Services can connect to any cloud based ERP system using the API.
As a cloud-based service, organisations aren’t required to install or maintain software locally. Instead, the service provider manages all software and hardware updates, resulting in IT cost savings.
What Are the Benefits of Invoice Automation in the Cloud?
There are many benefits that large organisations can realise by automating their vendor invoice processes in the cloud:
1) Expedited Vendor Payments
One of the key benefits of Invoice Automation in the Cloud is the ability to expedite vendor payments. The reduced time required to process invoices and the faster approval times that result from automation can help organisations improve their payment turnaround times. This, in turn, can help to improve supplier relationships.
2) Improved Visibility Into Accounts Payable
Another notable benefit of automating invoicing processes is the improved visibility that it can provide into an organisation’s AP function. With cloud service invoice automation, AP professionals can see all invoices in one place and track each invoice’s status throughout the approval process.
This improved visibility can help organisations identify and resolve bottlenecks in their approval processes. It can also help to improve overall AP efficiency.
3) Reduced Accounts Payable Costs
Invoice Automation in the Cloud can also help to reduce the overall costs associated with AP functions. The reduced time required to process invoices can lead to labour cost savings as employee productivity rises.
4) Improved Cost Efficiency
In addition to the direct cost savings achieved through cloud service invoice automation, organisations can also realise improved cost efficiency in other areas. For example, the increased visibility into unpaid invoices can help AP departments identify and address late payment penalties and interest.
Additionally, the reduced time required to process invoices can help organisations avoid rushes and last-minute approvals that can lead to errors and additional costs. Organisations are also more likely to capture early payment discounts when invoices are processed promptly.
5) Improved Compliance With Regulatory Requirements
Organisations that automate their invoicing processes can also improve compliance with various regulatory requirements. For example, many regulations stipulate how long invoices can go unpaid before penalties are incurred
With cloud service invoice automation, AP departments can set up reminder alerts to ensure that invoices are paid within the required timeframe. This can help organisations avoid incurring late payment penalties.
Find Out More
Invoice Automation in the Cloud can bring about many benefits for large organisations. The ability to expedite vendor payments, reduce AP costs, and improve compliance with regulatory requirements are just a few of the notable advantages that can be realised through automation.
To find out more or discuss the potential productivity and efficiency benefits for your AP team, please call Cogent Consulting today on 01536 266585.