Accounting and payment processes are a core part of an organization's business, and once in place they seem difficult to change. The faster the world moves towards digital technology and automation, the faster that need for change will accelerate internally in businesses.
According to a study conducted by G2 crowd, 58% of large companies use cloud accounting, and companies that are using cloud-based accounting report to have seen a 15% year-over-year revenue growth. This is due to better data security, automation and overall more timely and efficient processing. more than that, cloud computing in general reduces labor costs by 50%! So, if moving accounting and business processes to the cloud and digital space allows organizations to drastically save, why wouldn't everyone be doing it?
Unfortunately, many organizations like to keep their processes as is - because that is always how they have always been conducted in the past. Many do not realize that there are multiple lagging factors within those back-end processes that are holding businesses back from achieving their highest potential. For many - it's actually COSTING the organization money to have manual processes - because the technological advancements of the cloud, automation and payment optimization do not only save on costs, but can also produce discounts, rebates and a running revenue stream.
How is the manual world of financial accounting different than a digitally transformed one?
The answer is right in the question...digital technology!
Using an accounting ERP system that stores data in the cloud is step one in generating an efficient, revenue-producing, back-end process. The data needs to be automatically secured and easily accessed - which one cannot do manually, and the cloud ensures the data will never be lost.
The next step involves automation - integrating that data into an automated AP process in order to efficiently store and process the invoices and data received.
The last step is automating these ready-to-pay documents through the payment process by the most optimal form of payment to each vendor.
To all the accountants and accounts payable workers - your proof is in the numbers! Reading those statistics should help highlight the urgency and need to move towards a digital solution in order to achieve business goals, keep up with the future competition, and stay within the accounting/processing standards of not only today, but tomorrow.
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