Why Global Businesses Are Investing in Global AP Automation Solutions

Global businesses are increasingly investing in automated accounts payable solutions to enhance efficiency, ensure compliance, and reduce costs. This article explores the key reasons behind this trend, including improved productivity, local compliance adherence, cost-effective scaling, staff retention, streamlined audits, and increased visibility. Discover how global AP automation empowers enterprises to optimise their operations and stay ahead in the competitive global market.

The Global Adoption of Global AP Automation Solutions

More and more Multi-National Corporations (MNCs) and Public Limited Companies (PLCs) across Europe are turning to global AP automation technology. These organisations recognise the immense value that digital transformation brings to their operations, particularly within the finance function. In response to this trend, Kefron has spent the last several months analysing its growing customer base of MNCs, PLCs, and large enterprises to understand their reasons for adopting automated accounts payable (AP) solutions.

The findings are compelling. Businesses are increasingly realising that global AP automation not only enhances efficiency but also offers significant strategic advantages. In this whitepaper, we uncover seven critical reasons why investing in automated accounts payable solutions is becoming a priority for global businesses.

AP automation is not just a tool for efficiency; it is a strategic enabler that empowers global leaders to optimise their operations. By automating routine tasks and integrating advanced technologies, companies can unlock new levels of productivity and scalability. This transformation is particularly crucial for large enterprises that manage extensive financial transactions across multiple locations and jurisdictions.

Powering Global Leaders with Global AP Automation

Automated accounts payable solutions provide a robust framework for managing invoices, payments, and financial records with precision and efficiency. They eliminate manual errors, reduce processing times, and ensure compliance with local and international regulations. As businesses continue to expand globally, the need for a streamlined, efficient, and compliant AP process becomes increasingly important.

Prioritising Transformation Programmes with Process Automation

Allocating budget and scarce resources to the most appropriate transformation programme is critical. Most large businesses have dedicated teams responsible for digitisation and development programmes. Their role involves deciding which transformation initiative will deliver the most value in terms of time saved, efficiency, and cost reduction. Our enterprise customers agree that global AP automation is usually one of the last functions to embark on a transformation journey, but once implemented, it often delivers the most value. The fact is that global AP automation is easy to implement. A configurable solution means enterprises don’t need to change their processes.

An 80% increase in AP team productivity with invoice automation underscores the transformative impact of these solutions. Businesses are able to allocate resources more effectively and achieve significant improvements in operational efficiency.

Our main finance transformation project was to implement a new cloud-based ERP system globally to improve financial analysis and reporting across the Impellam Group. Alongside that, we wanted to invest in innovative automation tools that gave time back to our finance function and complimented our new ERP. Accounts Payable was our most manual and fragmented process across finance and Kefron AP provided a solution that drove automation, while integrating to our new ERP system.” Paul McMahon Head of Finance Transformation at Impellam Group PL

Ensuring Local Compliance for Global Businesses with AP Automation

Companies with locations across the world must contend with ever-changing government mandates. For instance, the introduction of Continuous Transaction Controls (CTC) in countries such as Italy and France mandates businesses to comply with specific e-invoicing regulations. B2B invoices must be received and sent in specific formats to a government portal to be registered before they can be sent to the client. Adopting e-invoicing solutions can help combat the risk of fines and ensure compliance.

Enterprise organisations are classified as high-risk businesses for receiving penalties if compliance standards are not met. Automating AP processes helps these companies stay ahead of regulatory changes and avoid costly fines.

We chose Kefron as our global AP automation platform partner because they were one of the few suppliers who could support both of our key requirements which include AP automation and e-invoicing globally. E-invoicing is fast becoming a mandatory requirement in European countries. This means that by law, clients will need to submit documents in specific formats approved by government to do business in that country” Stephanie Riera, Group Director of Finance & Transformation at Exclusive Networks

Grow and Scale While Reducing Cost with Global AP Automation

Constantly searching for the best return on capital, large enterprises frequently add new product lines, make acquisitions, and expand into new geographies, often necessitating the hiring of new people. It’s imperative for businesses looking to expand operations to do so cost-effectively to ensure long-term scalability and profitability. For instance, Kefron clients like Kingspan Insulated Panels wanted to ensure efficient hiring and found that investing in automation was a key strategy to achieve this.

With automated accounts payable, businesses experience 99% less manual data entry for finance teams, allowing them to focus on more strategic tasks. This reduction in manual processing not only saves time but also reduces the costs associated with human errors.

As a business, we make acquisitions every year to support our business strategy. With those acquisitions come more volume of work for our existing finance teams. We wanted to grow through acquisition while reducing the need for hiring staff to do repetitive, mundane work like processing supplier invoices and so we turned to Kefron AP. Their extraction software extracts 99% of the data first time on incoming supplier invoices” Tomasz Sobczyk, IT Project Manager at Kingspan Insulated Panels

The True Cost is Opportunity Missed in Process Automation

Large enterprises process a substantial volume of supplier invoices each month. The true cost of processing an invoice manually can range from £4.00 to £15.00 when factoring in average salary costs per employee, time spent on data entry, managing supplier queries, and matching invoices against purchase orders. AP automation can reduce invoice processing costs significantly, but the true cost lies in the missed opportunity to re-deploy staff onto higher-value activities, such as spend management, forecasting, and budgets.

Switching from a traditional purchase ledger to a purchase ledger analyst role, responsible for focusing on strategic financial activities, can lead to an 80% reduction in invoice processing costs. This shift allows businesses to make better use of their finance professionals’ skills and drive more value from their operations.

Enhancing Staff Retention with Global AP Automation

The battle for retaining high-quality employees continues. Large organisations hire highly trained finance professionals who often aspire to become senior accountants or finance leaders. Attracting and retaining these professionals is challenging when their job includes repetitive mundane work. The shift to more flexible working and shorter working weeks means skilled finance professionals expect automated processes so they can focus on more rewarding work. They also expect work-from-home options, which cloud-based solutions like Kefron AP can provide.

It is practically impossible to run an efficient and effective AP process without some form of digitisation and automation. Many invoice approvers in MNCs and PLCs still spend a lot of time on the road or in the air, highlighting the necessity for software solutions that support mobile and remote work.

Streamlining Audits with AP Automation

Audits for large organisations can be time-consuming and stressful. Compiling documentation, report building, and providing access to auditors usually involves a paper-intensive process. Cloud-based technology with low-cost user licence models can make audits less intrusive by allowing auditors access to all documentation, history logs, audit trails, and records of payments. This reduces the burden on finance teams and streamlines the audit process.

Invoice automation streamlines the entire audit process, benefiting both businesses and auditors. By providing real-time access to financial data and comprehensive audit trails, companies can ensure smoother and more efficient audits.

Improving Visibility with Global AP Automation

With multiple locations, legal entities, and segmented AP teams, it becomes increasingly difficult to get an accurate snapshot of a company’s global liabilities. Invoices come in different formats, and each country has its own processes. An invoice automation solution with universal business rules, configurations, and processes ensures global efficiencies and provides management with a single source of truth for the entire AP process from start to finish. This visibility is crucial for timely supplier payments, staff training, and accurate reporting.

“Having one global view and streamlined process was important for us as a group as it reduces time to pay suppliers, makes training for our own staff easier, and provides more clarity and accuracy on reporting.” – Paul McMahon, Head of Finance Transformation at Impellam Group PLC

Choosing the Right Global AP Automation Solution

Understanding Your Needs for Global AP Automation

The first step in selecting the right automated accounts payable solution is to thoroughly understand your business needs and requirements. This involves conducting an in-depth analysis of your current AP processes, identifying pain points, and outlining the goals you aim to achieve with automation. Key considerations might include the volume of invoices processed, the complexity of your approval workflows, integration capabilities with existing financial systems, and compliance requirements specific to your industry and locations.

Evaluating Key Features of Global

When evaluating potential automated accounts payable solutions, it’s essential to consider the key features that will best support your business needs. Look for solutions that offer robust data capture capabilities, including AI for accurate data extraction from various invoice formats. Additionally, the ability to customise workflows, automate approvals, and integrate seamlessly with your ERP system are crucial features. Solutions that provide real-time analytics and reporting capabilities can also offer significant advantages by delivering actionable insights into your AP processes.

Ensuring Scalability and Flexibility

Scalability is a critical factor to consider, particularly for businesses expecting growth or changes in their operational landscape. The chosen automated accounts payable solution should be capable of scaling with your business, handling increased invoice volumes and adapting to new business units or geographic locations. Flexibility is equally important, as it ensures that the solution can accommodate specific business processes and regulatory requirements without requiring extensive customisation or additional investment.

Integration and Interoperability

One of the primary benefits of automated accounts payable solutions is their ability to integrate with existing financial and ERP systems. When selecting a solution, ensure that it offers robust integration capabilities that allow for seamless data exchange between systems. This interoperability not only reduces the risk of data silos but also enhances the accuracy and efficiency of your overall financial operations. Solutions with open APIs (Application Programming Interfaces) often provide greater flexibility in integration, allowing you to tailor the system to your specific needs.

Vendor Support and Training for Global AP Automation

The implementation of an automated accounts payable solution can be complex, and the level of support provided by the vendor is a crucial factor in ensuring a smooth transition. Assess the vendor’s support offerings, including implementation assistance, ongoing technical support, and training programs for your team. A vendor that provides comprehensive training and continuous support can significantly enhance the success of your automation initiative, ensuring that your team can fully leverage the system’s capabilities.

Security and Compliance

Given the sensitive nature of financial data, security and compliance are paramount when choosing an automated accounts payable solution. Ensure that the solution complies with relevant industry standards and regulations, such as GDPR (General Data Protection Regulation) in Europe or other local data protection laws. The solution should also offer robust security features, including data encryption, user access controls, and audit trails, to protect against data breaches and ensure the integrity of your financial information.

Cost and Return on Investment (ROI) of Global AP Automation

While the initial cost of an automated accounts payable solution is an important consideration, it’s equally important to evaluate the potential return on investment (ROI). Consider the long-term savings from reduced manual processing, fewer errors, improved compliance, and enhanced efficiency. Many vendors offer pricing models based on the volume of invoices processed, which can provide flexibility and scalability for growing businesses. Conducting a thorough cost-benefit analysis can help you determine the true value of the solution and make a more informed decision.

How Kefron AP differentiate from other suppliers?

What is Kefron AP?

Kefron AP is an innovative invoice automation solution designed to streamline the entire accounts payable process. By digitizing invoices regardless of their format—whether received by post, fax, or email—Kefron AP handles data entry and validation, reducing the need for manual intervention. The software captures required invoice fields such as supplier names, line items, VAT, and purchase order numbers, ensuring accurate and efficient processing. With features like automated approval workflows, seamless integration with finance systems, and real-time reporting, Kefron AP provides a comprehensive and user-friendly platform for managing financial documents.

The primary goal of Kefron AP is to eliminate manual errors and bottlenecks in the AP process. This solution offers advanced data capture technology that ensures the accurate extraction of invoice information, thus minimizing human errors. Additionally, Kefron AP enhances visibility and control over the accounts payable process by providing real-time access to invoices and comprehensive audit trails. This not only simplifies compliance with local and international regulations but also empowers businesses to make informed financial decisions based on accurate and timely data.

Why Kefron AP is a Primary Choice for Global Businesses

Global businesses prefer Kefron AP for its ability to adapt to diverse operational needs and regulatory requirements. Its advanced AI technology continuously improves data capture accuracy, making it a reliable tool for enterprises dealing with high volumes of invoices across multiple locations. The solution’s flexibility allows it to integrate seamlessly with various finance systems, ensuring a smooth transition from manual to automated processes without disrupting existing workflows. This adaptability is crucial for global businesses looking to maintain compliance and efficiency across different jurisdictions.

Moreover, Kefron AP stands out for its ease of use and robust support infrastructure. The platform’s intuitive interface ensures quick adoption by users at all levels, reducing training time and fostering early user engagement. Kefron provides comprehensive support and continuous improvement services, ensuring that the AP automation solution evolves with the business needs. This commitment to customer-centric innovation makes Kefron AP a preferred choice for global businesses aiming to optimize their accounts payable processes, reduce costs, and enhance overall operational efficiency.

Automated Accounts Payable for Global Business

The adoption of automated accounts payable solutions is a strategic move for global businesses seeking to enhance efficiency, ensure compliance, and reduce costs. By leveraging these solutions, companies can improve productivity, achieve cost-effective scaling, retain top talent, streamline audits, and gain increased visibility into their financial operations. As businesses continue to expand and navigate the complexities of a global market, investing in global AP automation is not only beneficial but essential. By choosing the right automated accounts payable solution that meets specific business needs and goals, enterprises can stay ahead in the competitive landscape and drive long-term success.

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Author: James Smith
James Smith is responsible for delivering Kefron’s flagship software service Kefron AP. He is heavily involved in automating accounts payable finance projects to increase productivity and reduce costs. With 21 years of experience in scoping complex system solutions, James has seen ‘the good, the bad, and the ugly’ of change management and technology projects.