Cloud Automation:
Best Practices for AP Efficiency

Cloud Automation: AP’s Best Friend

In the context of cloud computing, automation refers to the process of creating software that can automatically manage and orchestrate the operational aspects of cloud services. This includes tasks like managing virtual machines, adjusting computing resources based on demand, and handling storage and network configurations.

Cloud automation in Accounts Payable (AP) refers to the use of cloud-based technologies to automate various AP tasks, such as invoice processing, data entry, and approvals. By leveraging cloud-based solutions, businesses can streamline their AP operations, reduce manual effort, and improve efficiency.

Key Benefits of Cloud Automation in AP:

• Reduced manual effort: Automation eliminates repetitive tasks like data entry, freeing up AP staff to focus on higher-value activities.
• Improved accuracy: Automation minimizes human error and ensures data accuracy, reducing the risk of payment mistakes.
• Enhanced visibility: Cloud-based solutions provide real-time visibility into AP processes, enabling better cash flow management and decision-making.
• Scalability: Cloud-based solutions can easily scale to accommodate changes in business volume and complexity.
• Cost savings: Automation can lead to significant cost reductions by eliminating manual processes and optimizing workflows.

READ MORE: Cloud-Based ERP Solutions: Definition, Benefits, Costs

How Can I Use Cloud Automation in AP

• Invoice processing: Automated data capture, validation, and matching of invoices to purchase orders and receiving reports.
• Three-way matching: Automating the comparison of purchase orders, invoices, and receiving reports to ensure accuracy.
• Workflow automation: Streamlining approval processes and routing invoices to the appropriate approvers.
• Payment automation: Automatically generating and processing payments based on approved invoices.
• Reporting and analytics: Generating automated reports and analytics to provide insights into AP performance.

By implementing cloud automation, businesses can transform their AP operations, improve efficiency, and gain a competitive advantage. Let’s explore these uses in more detail!

Understanding Cloud Automation: Key Things to Know

Cloud automation involves using software and technologies to reduce manual efforts in configuring and managing cloud-based resources.

Understanding the fundamental terms related to cloud automation is crucial for effectively leveraging its capabilities. Here are some of the most important things you should know when it comes to this technology:

What is Cloud Computing?

Cloud computing refers to the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet («the cloud») to offer faster innovation, flexible resources, and economies of scale.

What Is Infrastructure as a Service (IaaS)?

Infrastructure as a Service (IaaS) is a form of cloud computing that provides virtualized computing resources over the Internet. IaaS is one of the three main categories of cloud services, alongside Platform as a Service (PaaS) and Software as a Service (SaaS).

What Is Platform as a Service (PaaS)?

Platform as a Service (PaaS) provides hardware and software tools over the internet, typically supporting the application development environment. Developers can use these tools to build applications without needing to manage the underlying infrastructure.

What Is Software as a Service (SaaS)?

Software as a Service (SaaS) is a software distribution model in which applications are hosted by a third-party provider and made available to customers over the Internet. It allows users to access software applications on a subscription basis without the need for internal infrastructure or hardware.

LEARN MORE: What are the Returns on Intelligent Process Automation?

What is the Value of Orchestration in Cloud Automation?

Orchestration in cloud environments refers to the automated arrangement, coordination, and management of complex computer systems, middleware, and services. It is typically used to automate the management of cloud resources and their provisioning, ensuring that interactions between different services are handled smoothly.

What is the Role of DevOps in Cloud Automation?

DevOps is a set of practices that combines software development (Dev) and IT operations (Ops), aiming to shorten the development life cycle and provide continuous delivery with high software quality. Cloud automation tools are often used in DevOps to streamline workflows in software development and infrastructure management.

Invoice Processing with Cloud Automation

Invoice processing with cloud automation involves using cloud-based software and technologies to automate the steps involved in handling invoices from receipt to payment. This modern approach leverages the scalability, accessibility, and advanced computational capabilities of the cloud to streamline the accounts payable (AP) processes, reducing manual effort and improving accuracy and efficiency. Here’s an overview of how invoice processing is transformed by cloud automation.

Key Components of Cloud Automation in Invoice Processing

Cloud-based systems use Optical Character Recognition (OCR) and other intelligent data capture technologies to automatically extract data from received invoices, whether they are in paper form, PDFs, or other electronic formats. This eliminates the need for manual data entry, reducing errors and speeding up the process.

How Can Cloud Automation Make Approvals Easier?

Once data is captured, cloud automation software routes the invoice through a predefined workflow for approval. This typically includes automated checks for matching invoices with purchase orders and receipt documentation, validation of invoice data against vendor information, and routing to the appropriate personnel for approval.

Does Cloud Automation Help with Exception Handling?

In cases where invoices do not match purchase orders or there are discrepancies that need resolving, cloud automation systems can flag these exceptions and notify the appropriate staff members. Some systems provide collaboration tools that allow staff to communicate and resolve issues directly within the platform.

Cloud Automation and Electronic Invoice Payments

After approval, invoices can be scheduled for electronic payment directly through the cloud system. This can include various payment methods such as ACH, wire transfers, or credit card payments, which are all processed within the secure environment of the cloud.

How Can Cloud Automation Ensure Real-Time Reporting and Analytics?

Cloud invoice automation provides powerful tools for monitoring and analyzing the invoice processing workflow. Managers can view real-time dashboards to check the status of invoices, track financial metrics, and identify bottlenecks or inefficiencies in the process.

Cloud-based invoice processing systems often integrate seamlessly with other business systems such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems. This integration ensures data consistency across all platforms and enhances visibility into financial operations.

Benefits of Cloud Automation in Invoice Processing

• Cost Efficiency: Reduces the costs associated with manual processing, including labor and materials.
• Speed: Accelerates the entire invoice processing cycle, allowing businesses to take advantage of early payment discounts and avoid late payment penalties.
• Accuracy: Minimizes human errors in data entry and improves the accuracy of financial records.
• Scalability: Easily scales to handle increased volumes of invoices without the need for additional staff.
• Accessibility: Allows authorized personnel to access invoice data and processing tools from anywhere, facilitating remote work and business continuity.
• Compliance and Security: Enhances compliance with regulatory requirements by maintaining detailed audit trails and using secure data storage and transmission methods.

Getting Started with Cloud Automation for Invoicing

When implementing cloud automation for invoice processing, businesses should consider their specific needs regarding the volume of invoices, types of payments, integration with existing systems, and compliance requirements. We will explain the process in the next section.

By leveraging cloud process automation, businesses can transform their AP processes, making them more efficient, transparent, and adaptable to changing business environments.

How Can I Implement Cloud Automation in AP Processes?

Implementing cloud automation in your accounts payable (AP) processes can significantly enhance efficiency, accuracy, and cost-effectiveness. Here’s a step-by-step guide on how to integrate cloud automation into your AP operations:

1. Assess Your Current AP Processes

Begin by evaluating your current AP workflows to identify areas that can benefit from automation. Look for repetitive tasks such as data entry, invoice matching, and payment processing. Understanding where delays or inefficiencies occur helps in pinpointing where automation can make the most impact.

2. Choose the Right Cloud Automation Software

Select a cloud-based AP automation solution that fits your business needs. Consider features like:

• Integration Capabilities: Ensure the software can seamlessly integrate with your existing financial systems, ERP software, and other business applications.
• Scalability: The solution should be scalable to accommodate your business’s growth.
• Security: Since financial data is sensitive, choose a platform with robust security measures.
• User Experience: Opt for software that is user-friendly and requires minimal training.
• Support and Updates: Check if the provider offers reliable customer support and regular updates.

3. Plan the Cloud Automation Implementation

Develop a detailed implementation plan that includes:

• Timeline: Establish a clear timeline for deployment.
• Training: Plan for comprehensive training sessions for all users to ensure they are comfortable with the new system.
• Data Migration: Outline the process for transferring existing data to the new system.
• Testing: Include a testing phase to iron out any issues before going live.

FIND OUT MORE: Elevate Your Accounts Payable Automation Strategy

4. Migrate Data to the Cloud

Carefully migrate your AP data to the cloud-based system. This typically includes vendor information, historical invoices, payment records, and compliance documentation. It’s crucial to maintain data integrity and security during this process.

5. Use Cloud Automation to Automate AP Tasks

Configure the cloud automation software to handle specific AP tasks such as:

• Invoice Receipt and Data Capture: Use OCR (Optical Character Recognition) to automatically capture and convert invoice data into a digital format.
• Invoice Approval Workflows: Set up automated workflows to route invoices to the appropriate personnel for approval based on pre-defined rules.
• Exception Handling: Automate the flagging of discrepancies for manual review.
• Payments Processing: Automate payment scheduling and processing according to vendor terms and conditions to take advantage of early payment discounts and avoid late penalties.

6. Monitor and Optimize Your Cloud Automation Integration

After implementation, continuously monitor the system’s performance and user adoption. Solicit feedback from users to identify any challenges or areas for improvement. Regularly review the system’s efficiency and accuracy, making adjustments as necessary to optimize workflows.

Also, ensure that your cloud automation tools comply with industry regulations and standards. This includes managing data privacy, audit trails, and financial reporting requirements.

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7. Evaluate and Expand Your Cloud Automation Implementation

Once the cloud automation system is stable, evaluate its impact on your AP processes. Assess areas like cost savings, error reduction, and time efficiencies. Consider expanding automation to other financial areas or integrating additional features like advanced analytics or AI-driven insights for further optimization.

By following these steps, you can successfully implement cloud automation in your AP processes, leading to significant improvements in operational efficiency, accuracy, and financial health.

Final Thoughts: Reap the Benefits of Cloud Automation with Artsyl

Embracing cloud automation in your AP processes can dramatically transform your business’s financial management, making it more streamlined, cost-effective, and resilient against errors. As we’ve seen, companies adopting this technology with Artsyl solutions not only enjoy quicker invoice processing times but also benefit from substantial cost reductions.

Remember, in the world of finance, efficiency is key, and with cloud automation, you’re not just keeping up; you’re leading the way. Take Artsyl on your journey towards smarter, faster, and more reliable financial processes today and watch as your business reaps the benefits of cutting-edge technology.