Keys to Automating Accounting Processes in the Cloud
The multinational Yooz has developed a practical guide that significantly simplifies the adoption of a project to automate the usually manual process of Accounts Payable and in which different agents and a lot of paper are involved, from the completion of the purchase order to the moment of “ be paid” on the provider’s invoice.
The digitization of the entire process also means a competitive improvement that adds another series of advantages to the financial area.
According to the consulting firm Paystream Advisors, depending on the digital maturity of the companies, the impact of the use of automation solutions in reducing costs and the terms between their receipt and final approval varies from an average of 45 days in low-tech companies. , with a management cost of 14.12 euros, after five days in the most automated companies, reducing the processing cost to only 2.22 euros.
In the middle are most companies that still combine paper-based processes with other computerized ones. The study by Paystream Advisors estimates the processing time as an average of 23 days and the cost per invoice at 6.32 euros.
For Capgemini Consulting, in a similar study among CFOs, Automating Accounts Payable achieved a 71% cost reduction. And it is that the management of contacting suppliers represents up to 41% of an accountant’s time, while the management of late payments or disputed invoices consumes 31% of their time.
But let’s not just stop at ‘figures and letters. The world is changing rapidly, and the pandemic has shown that the companies best prepared to face the new challenges of the present and to come to those that have taken a good part of their performance to the cloud.
Facilitating teleworking and multiple access ‘ATAWADAC’ ( Any Time, Anywhere, Any Device, Any Content); those that base their business strategy on extracting value from data through Artificial Intelligence, on the best knowledge of the client, their expectations, and fulfilling their experience.
Likewise, it is in the adoption of pay-per-use tools that provide flexibility, agility and scalability.
The growing ‘uberization’ of the economy is driving a gap between distanced innovators and the mainstream that is held back by increased costs of all kinds.
And the directive adds: “Without going any further, companies immersed in a digital transformation process show growth up to 6 times higher and are on average 25% more profitable than those that have remained anchored in a traditional approach.
Some elements seem to show that the use of digital technologies constitutes a powerful lever to (re)find the conditions of competitiveness”.
The keys to success
Faced with these significant challenges of the digitalization of companies, it is easy to feel a little lost and disoriented. Where do I begin? Where do I go next? What will it cost me?
According to this practical guide, “the important thing is to take the first step because those who have the support of technology will be the ones who survive and differentiate themselves from their competition.
In addition, it is easier to start than it is believed. The important thing is to find the person or team that leads this change, and due to their functions and attributions, the director of the financial and accounting area is the ideal candidate.
There are already many telematic processes to which companies are obliged in their relations with the Tax Agency or their banks, so this already serves as the starting point for a more ambitious digital transformation plan.
When we talk about digital transformation, everything looks abstract and unclear about how to implement it, when, why, where to start, etc. In addition, not all companies have the same digital transformation plan they can copy, and that’s it.
Each company will have its path to follow depending on its starting point, sector of activity, needs, and objectives, among others. “However, putting together and implementing a digital transformation plan in the company is much easier than you think, and it is quite easy to take that first step.”
- Points to take into account in the preparation of this first digitization project
- Prioritize Cloud technologies in SaaS mode
- Facilitate and encourage the use of the solution by the financial team
- Ensure automation performance
- Ensuring the confidentiality and security of data
- Give priority to its integration with other pre-existing technologies in the company.
- Streamline and simplify the validation process with smart workflows
- Access real-time data for informed financial management
The digital transformation of companies, and more specifically, the financial function, cannot wait any longer. The good news is that it is easy, fast and straightforward to do if we prepare an implementation plan focused on achieving ‘quick wins’ with achievable objectives. The time has come to take the plunge!
