How Cloud-Based Software That Provides Accounts Payable Automation Can Improve Your ERP System
The decision to implement an Enterprise Resource Planning (ERP) system is a cost-based decision designed to improve departmental productivity while enhancing efficiency across workflows. But, the importance of maximizing the value of an ERP system can be an expensive task. New cloud-based accounts payable automation is a solution to improve ERP processes.
ERP systems are the leading tool for improving the AP and procurement process. Their capacity to fill the need for managing complex business activities makes ERP software imperative as a part of a company’s back office infrastructure. However, the costs associated with using an ERP system to its full capacity comes with additional charges as well as risk factors as the installation of AP modules, and purchases of system licenses only increase the expenses a business may or may not be willing to pay. Training and software knowledge are additional costs that come with ERP systems. This leads to many drawbacks and limitations if a company or an organization is unable to afford the full value of the maximization of its ERP system.
Utilizing advanced AP automation solutions is an affordable solution that can turbocharge ERP systems. The adoption of cloud-based platforms like ClassWallet is a cost-effective solution, and easily accessible for users. The Institute of Financial Operations 2014 AP Automation Survey reported, “a greater percentage of companies report lower average costs using electronic invoices as opposed to paper ones.”
Indeed, 43 percent of respondents in the Financial Operations survey said their average e-invoice cost was less than $2. The survey also found, “As the rate of cost decreased, the level of efficiency across departments increased as well. Greater adoption of automation also appears to be playing a key role in reducing invoice entry and payment error rates.” The percentage of respondents reporting a decline in error rates over 18 months increased to 40 percent versus 30.9 percent the previous year.
As the paper from invoices and receipts continue to pile in school accounting offices across the U.S., the need for state-of-the-art-automated solutions is even more crucial as businesses continue to grow. Having a flexible and scalable solution to meet the needs of transactions of all sizes is an important decision for your finance team to consider. The decision needs to take into account the costs associated with further customizing an ERP or going with a cloud-based alternative solution as a cost-effective way to improve your ERP processes.
Contact ClassWallet today for a demo of how our cloud-based technology can work to maximize your ERP System.