You’ve wrung out as much inefficiency as you can from your manual processes. And you’ve realized that the only way to keep up with the mounting piles of invoices, reboot the morale of your Accounts Payable department, and save money for your department and your company, is embracing new accounting and technology. But how do you know where to start in choosing the right invoice and payment processing (AP) solution?
Based on our whitepaper, How to Mess Up Your AP Automation Project, we have developed a comprehensive checklist to help you avoid “messing up” when it comes to choosing the right provider.
In Step 1: Preparation, where we take you through things you can do to prepare for the process of investigating Accounts Payable automation solution providers.
Part of the internal assessment of your current Accounts Payable workflow is to determine if the solution you choose for your business should be cloud-based (a server hosted in the cloud) or on-premises (application is installed and maintained on the company's internal servers). This blog will give you a good starting point to understand the basic differences between the two.
Cloud-based AP Automation:
Very cost effective: There is no IT cost to implement and you can find solutions like Yooz that offer subscription pricing where you only pay for the functionalities and features you need.
On-premises AP Automation:
There is generally a very high up-front implementation cost, which can be prohibitive for small- and mid-sized firms.
Cloud-based AP Automation:
Simple and easy set-up that lends itself to a fast implementation, and efficient training of your team. Staff can start realizing benefits of automation almost immediately.
On-premises AP Automation:
A complex set-up leads to a long implementation and complicated training of staff.
Cloud-based AP Automation:
Individual logins for approved users which serves as a private space into a dedicated cloud provider, ensuring maximum security.
On-premises AP Automation:
In-house data storage is less equipped to reduce the chances of security breaches.
Cloud-based AP Automation:
Flexible in serving unique needs and customizations that allow for scaling. There is no need to purchase and install additional servers to support growth of your company; this is handled automatically by the software provider.
On-premises AP Automation:
Tailored solutions that are customized on-site allow for more complex customizations and scalability.
Cloud-based AP Automation:
All inclusive, subscription-based, and many solutions allow users to only pay for what they need and add features as they grow.
On-premises AP Automation:
One-time fixed cost—typically high—and annual maintenance and support fees.
Cloud-based AP Automation:
Frequent updates with new features added on a regular basis.
On-premises AP Automation:
Additional costs and time for routine maintenance and upgrades.
Now we're focus specifically on the benefits of cloud-based Accounts Payable automation solutions.
Give yourself a paper cut: In a manual process where data is entered from a paper document, and then that same document is routed around for approvals, it can get lost, or worse fall into the wrong hands. With a cloud-based Accounts Payable automation platform with smart technology like AI powered by machine learning, as soon as you scan the document into the system it moves securely through the workflow and then is stored securely in the Cloud. The original document can then be shredded.
Better yet, as accounting and technologies are advancing so should your invoice processing workflow. These days many vendors are offering or opting for electronic invoices and getting rid of the paper completely. Through an email or file upload you can avoid any chance for papercuts in this paperless P2P process.
“What’s your password?”: Documents stored in the Cloud can only be accessed by those with login credentials, whether it be to view or approve. Users are also able to see the history of the document, who has accessed it, who has approved, where it is in the workflow. No more paper documents exposed at all stages in the process. No more lost documents.
Authorized Personnel Only: Access permissions can be set by department managers according to the dollar amount and/or sensitivity of the documents, so only those approved will virtually “touch” the document.
Seamless integration with ERPs: Once the document is in the automated system, it goes all the way through the process electronically, including being exported to the secure ERP, which offers another level of security. Pro tip: Make sure that whatever solution you are considering seamlessly integrates with your ERP.
With a cloud Accounts Payable automation solution like Yooz, your success will hinge on these six critical aspects that should be present and work together perfectly for a transparent, secure, and seamless workflow. Be strategic in your choice of Accounts Payable automation providers and choose the solution that does the most for your business.