The cloud is changing the way businesses operate. One area where this is particularly evident is in accounts payable (AP). Cloud-based AP automation is becoming increasingly popular because it offers several benefits that are not available with traditional, on-premises systems. In this blog post, we will discuss the different types of cloud-based AP systems and the benefits they offer. We will also explain why cloud-based AP automation is becoming the new normal for businesses.
What is Cloud-Based AP Automation?
Cloud-based AP automation is a system that allows businesses to manage their accounts payable process using cloud-based software.
There are three different types of cloud-based AP systems: public cloud, private/hosted cloud, and hybrid cloud.
The Benefits of Cloud-Based AP Automation
There are several benefits that businesses can enjoy by using cloud-based AP automation.
Cloud-Based AP Automation Offers Lower Costs
One of the most significant advantages is lower costs. With on-premises systems, businesses have to incur the costs of purchasing, installing, and maintaining the hardware and software. With cloud-based systems, these costs are eliminated because the service is provided by a third-party provider.
Your cloud-based accounts payable solution also empowers your team to capture early payment discounts by taking advantage of real-time insights that help you improve cycle times and cost per invoice. This AP solution will also deliver true cost savings because it checks for duplicate invoices to avoid double payments. Since your finance teams are also freed up from doing manual data entry, you can also save budget funds on payroll expenses.
Cloud-Based AP Solutions Have Heightened Security
Another advantage of cloud-based AP automation is increased security and additional backups. On-premises systems are susceptible to data loss due to hardware failures or natural disasters. With cloud-based systems, data is stored remotely and is therefore not at risk of being lost in the event of a disaster.
In addition, cloud-based systems offer increased security because they are often hosted in data centers that have state-of-the-art security measures like user authentication, privacy safeguards, and access controls. Confidential paper invoices are very difficult to keep secure, while digital invoices are always protected in your AP solution.
Cloud-Based AP Automation Can Be Accessed Remotely
Another benefit of cloud-based AP automation is that it offers anytime access remotely. This is important for businesses that have an accounts payable team that works remotely or travels frequently. With on-premises systems, these employees would not be able to access the system if they were not in the office. With cloud-based systems, they can take advantage of remote access from anywhere as long as they have an internet connection.
Better Visibility into KPIs with a Cloud-Based Accounts Payable Solution
Another benefit of cloud-based AP automation is that it makes it easy for finance teams to track key performance indicators (KPIs). With on-premises systems, businesses have to invest in additional software to track KPIs. With cloud-based systems, this functionality and high-depth data visibility is often included as part of the package.
Read More: Cloud vs On-premises Ap Automation
Cloud-Based AP Automation is Scalable and Cost-Efficient
Finally, cloud-based AP automation is scalable and cost-efficient. With on-premises systems, businesses often have to purchase more hardware and software as their business grows. This can be expensive and time-consuming. With cloud-based systems, businesses can simply add more users to access invoice workflows as their business grows. This makes cloud-based AP automation a more cost-effective solution for businesses that are expecting to grow in the future.
Why Cloud-Based AP Automation is Becoming the New Normal
As you can see, there are several reasons why cloud-based AP automation is becoming the new normal for businesses. The benefits of lower costs increased security, metrics tracking, real-time access, maximum efficiency, and the ability to allow access remotely are just a few of the reasons why cloud-based AP automation is becoming increasingly popular.
Cloud-based AP solutions are also paperless, which means that businesses can save time and money by eliminating the need to print, scan, and store invoices. Paperless processes are also more eco-friendly which is increasingly important as we see the impacts of paper and plastic pollution. In addition, cloud-based AP solutions are often more user-friendly than on-premises systems, making them easier for businesses to adopt.
As more fast-growing businesses adopt new software in their digital transformation efforts, cloud-based AP automation is likely to become even more popular. If your business is not already using cloud-based AP automation, now is the time to make the switch!
Mosaic offers Cloud-Based AP Automation Solutions and Consulting tailored to your business needs. Check out our blog for more AP tips like Successful AP Automation Implementation: Solving Common Challenges with Preparation and Collaboration.
Contact us to go paperless today!