Right-Sizing Accounts Payable Automation Software For Improved Operational Performance
END-TO-END PLATFORM VS SPECIALIZED PROCURE-TO-PAY SOFTWARE
Maximizing operational performance through process efficiency drives the profit margin in organizations across industries. This article is not an endorsement of one solution over another, rather, it offers data-driven insights into the relative merits of end-to-end platform automation versus specialized procure-to-pay software. As CFOs and finance executives evaluate the potential impact of such solutions, they should weigh the costs, benefits, and long-term sustainability of the options presented in this article against the needs for their individual organizations.
Accounts payable automation software has become increasingly common as organizations drive process efficiency with end-to-end platform automation. End-to-end platform automation offers the ability to scale the system to meet the needs of the organization as it grows, allowing the CFO to build additional tools over time. Additionally, due to its modularity, it can adapt to the changing needs of the organization quickly.
The specialized procure-to-pay software solution offers its own strengths. Most notably in its ability to offer pre-set financial processes, built-in workflow automation, and immediate accessibility. Moreover, such systems offer measure of scalability that cannot be matched by the end-to-end platform. Where the organization has number of transactions and transactions of different types, pre-programming minimizes the need to build the system anew when requirements shift.
However, while there are advantages to both the end-to-end platform and the procure-to-pay solution, it is important to consider the risk of wasted effort with customization and implementation time, thus forgoing any upfront cost-savings associated with the platform option. Furthermore, the short-term scalability of the end-to-end system carries long-term risks associated with support, scalability, and security as the organization expands its capabilities.
Ultimately, when determining which accounts payable automation system to implement, CFOs must assess the needs of the organization against the system capabilities and determine if the benefits associated with long-term scalability, customization, and functionality offset the added burden and effort associated with implementation. For those organizations seeking the most cost-effective solution, end-to-end platform automation may be the appropriate solution. But, for smaller organizations or those with focus on scalability, procurement-to-pay software can be an ideal choice.
