When it comes to selecting the right ePayables solution to automate the accounting function, there are certain factors that are going to be more important to a mid-market enterprise (MME) than to a larger one. The following are aspects that are likely to impact an MME’s decision-making process and will also help to differentiate between various solutions.
- Solution delivery and pricing – For an MME, a cloud-based solution makes great sense since there is no large, up-front investment (typically) nor is there a requirement for a large IT infrastructure or heavy involvement from IT staff. Pricing for cloud-based solutions generally follow some form of usage or time-based model (e.g., per transaction, per user, or per period fees). As a result, the enterprise pays for what it uses while also likely seeing the benefits of more frequent solution upgrades with new functionality.
- Deployment cost and time – In most cases, MMEs do not have the resources or time needed to manage a long and complex technology deployment. As such, MMEs should look for ePayables solutions that offer shorter deployment times of between four to eight weeks, a time-frame that cloud-based solution providers in this space should be able to achieve.
- Automation of the entire AP process – MMEs should consider solutions that allow them to automate the entire end-to-end AP process, from invoice receipt and processing to payment management and settlement. Many will find the option to outsource the scanning and capture of paper or PDF invoices appealing as certain suppliers will continue to submit paper. Manual data entry is also unnecessarily time-consuming and can be more costly than using a service provider that has an expertise in this area. Additionally, having the ability to make electronic payments (e.g., such as cards or ACH) further reduces processing costs and adds a level of precision and control to vendor payments that is not available with paper checks. If a business’s objective is to gain better visibility into cash flow and optimize it, automating the entire AP process and moving off paper is a great place to start.
- Ease of Use – Given the low-cost, do-it-yourself model of many cloud solutions there is generally a higher focus from the cloud providers to develop easy to use, intuitive solutions. This helps to keep the total cost of using these solutions down via reduced deployment and training expenses while providing the users with the necessary capabilities to manage the successful launch of the solution on their own. For example, cloud providers try to streamline and simplify the set-up of users and business rules through a do-it-yourself method (often referred to as set-up wizards). The delivery method of the solution combined with the ease of use and “DIY” functionality allows clients to get up and running quickly, accelerating the time to value.
- Mobile capabilities – Mobile devices today are incredibly popular and their usage has drastically increased over the last few years. From an AP perspective, the ability to access the solution via a mobile device can improve invoice processing times and overall efficiency of the solution by providing immediate access to remote or field staff and frequent travelers.
- Reporting capabilities – MMEs should look for solutions that include standard pre-defined reports and the ability to keep track of key metrics. Reporting capabilities can give a business real-time, accurate view of payables, allowing them to establish and track key metrics, continuously improve AP performance and make more informed decisions around vendor payments.
Gone are the days when being small means having to deal with largely paper-based and often disjointed and inefficient processes. For MMEs there is real value in having resources spend more time on higher value activities that have a real business impact than on tedious tactical tasks that can easily and quickly be automated. Through the deployment of technology that can automate the entire AP process or part of it mid-market enterprises can better evaluate financial liabilities and more accurately forecast cash flow, allowing for improved working capital management.
