July 10, 2023

Empowering Financial Excellence Through Cloud Automation

In today’s fast-paced business environment, organizations constantly seek ways to optimize operations and reduce costs. One area that often goes overlooked is the impact of manual processes on efficiency and productivity. The advent of cloud automation has allowed businesses to streamline their operations and achieve significant cost savings. 

According to McKinsey, one-third of the time in the workplace across all occupations involves collecting and processing data. This staggering statistic highlights the immense time and effort wasted on manual processes. Fortunately, companies like VelocityEHS have realized the power of automation in driving efficiency. 

In this blog post, we will explore the real cost of manual processes and how cloud-enabled automation can transform key financial processes, such as purchase order entry and workflows, vendor payments, subscription billing and revenue recognition, cash management and bank reconciliations, and audit readiness.

Heather Norum, the Director of Accounting at VelocityEHS, shared that implementing automation for revenue recognition, collections, and payment entries freed up three full-time accounting employees, resulting in annual savings of approximately $160,000. This remarkable success story demonstrates the tangible benefits of embracing automation.

Let’s dive deeper into specific financial processes that can be transformed through cloud automation:

1. Accounts Payable: Purchase Order Entry and Workflows

Traditional purchase order processes involve printing and physically circulating purchase orders for approvals. This manual approach consumes valuable time and can lead to delays. By leveraging automation, organizations can streamline the purchase workflow, gain visibility into spending, and eliminate the need for physical documentation.

2. Accounts Payable: Vendor Payments

Manual vendor payment processes are prone to errors, lack visibility, and require extensive manual reconciliation. By automating vendor payments, companies can expedite payment processing, take advantage of early payment discounts, reduce late payment fees, and gain complete visibility into payment status and reconciliation information.

3. Accounts Receivable: Subscription Billing and Revenue Recognition

Managing invoices manually can be arduous, especially in high volumes. Cloud financial management solutions simplify the process by automating subscription billing and revenue recognition. Companies like Avenu Insights & Analytics have experienced remarkable improvements, including a reduced DSO (Days Sales Outstanding) by over 10 days, a halving of aged receivables accounts, and an acceleration of $2 million in cash flow.

4. Cash Management and Bank Reconciliations:

Manual reconciliations can be time-consuming and error-prone, leading to delays and missed opportunities. By automating cash management and bank reconciliations, organizations can keep a clear sight of their cash in real time, enabling them to make informed financial decisions through intuitive dashboards and reports.

5. Audit-Ready Financials:

Preparing for audits can be daunting and time-consuming, often involving weeks of preparation and on-site visits from auditors. Cloud automation solutions, such as Sage Intacct, offer self-service capabilities that provide auditors with read-only access to the required information, significantly simplifying the audit process. With detailed audit trails and transaction tracking, companies can streamline the audit process and reduce the time and effort required for compliance.

The impacts of cloud automation are not limited to time savings alone. Several organizations have reported remarkable results after adopting automation solutions:

• ACUI reduced bank reconciliation time from 5 hours to just 5 minutes.
• Meals on Wheels America reduced the time spent preparing for audits by 60%.
• Komet Sales eliminated 100 hours of data entry per month.
• Monterey Peninsula Foundation saved 850 hours per year in accounts payable and reporting.
• PCF achieved 50% faster accounts receivable processing and client billing.
• World Learning saved over 1,200 hours annually through paperless processes.

With Sage Intacct, organizations can automate key financial processes. By eliminating manual effort and streamlining these processes, businesses can save valuable time, reduce errors, and improve operational efficiency. If you’re ready to take your financial management to the next level, contact us to schedule a complimentary discovery call and explore how cloud automation can propel your business forward.