Table of Contents
- Introduction
- The Partnership: A Strategic Alliance
- The Need for AP Automation
- Touchless Invoicing: The Future of Finance Operations
- Global eInvoicing Compliance
- Case Studies: Success Stories
- Implementation: Steps to Success
- The Road Ahead: Innovations in AP Automation
- Conclusion
- FAQ
Introduction
Imagine reducing the time it takes to process an invoice from 10 days to less than one. That's not just a vision but a reality, thanks to the partnership between Deloitte and Basware. In today's fast-paced business world, efficiency and compliance are not just advantages—they're necessities. This dynamic collaboration aims to revolutionize accounts payable (AP) automation, offering touchless invoicing solutions and ensuring compliance with eInvoicing regulations on a global scale. This blog post delves into how this partnership leverages cutting-edge technology to streamline financial processes, reduce errors, and meet regulatory demands, thereby offering businesses a competitive edge.
By the end of this post, you'll gain a deep understanding of the benefits and implications of the Deloitte-Basware partnership, learn about the technology driving these advancements, and understand how AP automation can transform your business operations.
The Partnership: A Strategic Alliance
In May 2023, Deloitte and Basware announced their strategic partnership aimed at enhancing AP automation and ensuring compliance with evolving eInvoicing requirements. This joint endeavor combines Basware’s state-of-the-art AP automation platform with Deloitte’s extensive expertise in finance, procurement, and tax advisory.
Objectives of the Partnership
- Streamlined Financial Processes: By integrating their systems and expertise, Deloitte and Basware aim to significantly reduce the time and labor associated with invoice processing.
- Enhanced Compliance: The partnership focuses on ensuring businesses comply with eInvoicing regulations, a critical aspect given the varying and stringent requirements of different countries.
- Cost Efficiency: Through touchless invoicing, businesses can save substantial amounts by reducing manual intervention and errors.
Joint Go-to-Market Strategy
A comprehensive go-to-market strategy has been developed to reach a broader audience and address diverse client needs. This includes training certified Deloitte consultants on Basware solutions, ensuring a seamless implementation of AP automation systems.
The Need for AP Automation
Current Challenges in Finance Departments
Finance departments globally are grappling with several persistent challenges:
- Manual Processing: Traditional invoice processing methods are labor-intensive and prone to errors, leading to inefficiencies.
- Compliance Burden: Meeting varying eInvoicing regulations across different jurisdictions adds to the operational complexity.
- Slow Processing Times: Delays in invoice processing can impact cash flow management and supplier relationships.
Benefits of Full AP Automation
Implementing full AP automation addresses these challenges comprehensively:
- Labor Cost Reduction: Automation drastically reduces the need for manual labor, cutting down associated costs.
- Error Minimization: By automating data entry and validation, the occurrence of errors is significantly reduced.
- Accelerated Processing: High volumes of transactions can be processed quicker, enhancing operational efficiency.
- Improved Data Insights: Automation systems offer better data availability and insights, facilitating informed decision-making.
Touchless Invoicing: The Future of Finance Operations
What is Touchless Invoicing?
Touchless invoicing refers to the complete automation of invoice processing—from receipt to payment—without manual intervention. This is achieved through advanced technologies such as machine learning, artificial intelligence, and optical character recognition (OCR).
How It Works
- Invoice Receipt: Invoices are received electronically and automatically entered into the system.
- Data Extraction: OCR technology extracts key information from the invoices.
- Validation and Matching: The extracted data is validated against purchase orders and contracts using machine learning algorithms.
- Approval and Payment: Once validated, invoices are automatically routed for approval and payment without manual intervention.
Benefits
- Time Efficiency: Reduces invoice processing time from days to mere hours.
- Cost Savings: Minimizes the need for manual processing, reducing labor costs.
- Compliance: Ensures consistent adherence to eInvoicing regulations.
- Error Reduction: Automates validation processes, minimizing human errors.
Global eInvoicing Compliance
Regulatory Landscape
The regulatory landscape for eInvoicing is constantly evolving, with new mandates being introduced across various countries. For instance:
- Europe: Countries like Spain, Poland, and Germany have stringent eInvoicing requirements, with more regions expected to follow suit.
- Asia: Nations such as India and Singapore are also implementing comprehensive eInvoicing regulations.
Importance of Compliance
Non-compliance can result in severe penalties and legal challenges. Therefore, ensuring your business meets eInvoicing requirements is not just a matter of regulatory compliance but also good business practice.
Case Studies: Success Stories
Mid-Sized Firms
A PYMNTS Intelligence report highlights that about 70% of mid-sized firms that have implemented full AP automation reported positive outcomes. These benefits range from reduced processing times to enhanced data accuracy and significant cost savings.
Enterprises in Regulated Markets
Basware has observed a surge in demand from enterprises in countries with stringent eInvoicing regulations. Companies in Spain, Poland, and Germany have particularly benefited from integrating comprehensive AP automation solutions.
Implementation: Steps to Success
Initial Assessment
Begin with a thorough assessment of your current invoice processing and compliance status.
Choosing the Right Solution
Select an AP automation solution that aligns with your business needs and regulatory requirements. Deloitte's certified consultants trained on Basware solutions can assist in this selection.
Customization and Integration
Customized solutions ensure seamless integration with existing financial systems, ensuring minimal disruption to business operations.
Training and Support
Provide extensive training to your finance team to ensure they are well-versed with the new system. Continuous support during and after implementation is crucial for a smooth transition.
The Road Ahead: Innovations in AP Automation
As technology continues to evolve, so will AP automation solutions. Future innovations may include:
- Blockchain: Enhances security and transparency in transaction processing.
- Advanced AI: Offers more precise data analytics and predictive insights.
- IoT Integration: Allows for real-time tracking and processing of invoices and payments.
Conclusion
The Deloitte and Basware partnership is setting a new standard in accounts payable automation and eInvoicing compliance. By leveraging cutting-edge technology and combined expertise, this alliance offers businesses an opportunity to streamline their financial operations, reduce errors, and stay compliant with evolving regulations. For companies looking to stay competitive and efficient in today's dynamic market, embracing AP automation is not just an option—it’s a necessity.
FAQ
What is AP automation?
AP automation refers to the use of technology to automate the processes involved in accounts payable, including invoice processing, validation, and payment.
How does touchless invoicing benefit businesses?
Touchless invoicing automates the entire invoice processing cycle, reducing manual intervention, minimizing errors, enhancing compliance, and speeding up operations.
Why is eInvoicing compliance important?
eInvoicing compliance ensures that businesses meet regulatory requirements for electronic invoicing, avoiding potential penalties and legal issues.
What are the future innovations in AP automation?
Future innovations may include blockchain for enhanced security, advanced AI for better data analytics, and IoT integration for real-time processing.
By understanding and leveraging the insights provided in this article, businesses can navigate the complexities of AP automation and eInvoicing compliance, thereby fostering a more efficient and compliant financial environment.
