Complex banking structures can make it incredibly difficult for large multinational companies to control their cash and manage affiliate relationships. For large global companies, in-house banking is an ideal solution to that problem. In-house banking is a way to centralize treasury functions into one entity, which minimizes subsidiaries from having to deal with their own bank.  

As the Association of Finance Professionals notes, the benefits advantages of an in-house bank are immense. Companies that leverage in-house banking have discovered benefits like centralized control of cash, cash visibility, less reliance on external funding, and more. With the use of a shared services arrangement and in-house banking software, a company can have complete control over their bank accounts, handle netting of funds between business units, minimize FX costs, lower wire fees and other bank transaction fees, and track cash and balances all in one centralized place.  

In-house banking has never been easier with the rise of in-house banking technology, which can significantly streamline IHB management. There is a plethora of solutions to choose from. However, it is very important your treasury team knows what to look for when shopping around. 

What to look for in IHB technology

1. ERP integration or embeddedness

To implement in-house banking, your company must choose a tech solution that will execute the functions of the bank. Having an in-house banking solution within the ERP centralizes intercompany payment process where in one place, your company can clear accounts and automate clearing of intra-company and inter-company payments and loans. Most importantly, when you automate these activities all in one place, your team can view data relevant to in-house banking in one place, helping your team highlight problem areas.

2. Robust intercompany settlement capabilities 

Within an in-house banking solution embedded into your ERP, your company can execute intercompany payments and auto-settle them against your in-house bank accounts within one solution. Embedded IHB solutions should be able to easily automate the netting of AP and AR invoices across legal entities, which can significantly reduce the transaction fees involved with actual wire or other payments back and forth between those entities. Robust IHB solutions should be able to generate and process IHB statements to decrease the time they spend on reconciliation. Loans can also be managed internally where some embedded in-house banking solutions allow the subsidiary to send loan payments to the parent within the ERP. 

3. Automated payment optimization  

Through the use of payment factory automation, you can automatically pay on behalf of subsidiaries. When done within an embedded in-house banking solution in the ERP, these payments also trigger auto-generation of journal postings. Payment-on-behalf-of and receivables-on-behalf-of services are also a part of many in-house banking tech solutions where some providers can auto-aggregate payments then route them.  

4. Centralized cash pooling  

For those looking to enhance their company’s liquidity management, an embedded in-house banking solution can create a centralized cash pooling center all within the ERP. To reduce gains or losses associated with actual cash settlements across currencies, embedded in-house banking solutions often offer ways to eliminate extra FX exchanges across currencies. From the ERP, treasurers can have complete visibility over their cash, which can guide them to determine if they need to deposit cash or withdraw funds according to their company’s financial health. 

5. Fraud prevention 

Lastly, the most important component of a good in-house banking solution is its fraud prevention framework. Approval processes are incorporated throughout these solutions so that payments are not executed without the approval from the necessary individuals. Since an embedded in-house banking solution is built within the secure ERP which heavily incorporates security roles and permissions, your in-house banking processes will be insulated from potential fraud. For global companies, payment risks are also minimized since cross-border payments can be made within the ERP instead of going through in-country payment processing.  

How do you choose an IHB technology provider?

After educating yourself on the benefits and functions of an in-house banking tech provider, your team now has the difficult job of choosing a provider. A good IHB technology provider should cut the time it takes to manage your in-house bank, aggregate relevant data such as AP and AR data, and automate routine tasks. If your company already uses an ERP, you should consider solution providers that work inside your ERP so your treasury team can have real-time data synchronization and connectivity. This allows for the most-to-date information on your company’s cash and banking activity. To pick a solution that best works for you, it is highly recommended to work with an external consultant that guides the selection process.  

If your company currently uses Microsoft Dynamics 365 Finance and Operations and are looking for an in-house banking solution, SKsoft Software has a best-in-class in-house banking solution with robust features like intercompany netting for invoices, real-time maintenance of bank balances, automatic bank statement generation, reconciliation of external and intracompany transactions within one system, and more.  

If you are interested in learning more about our solution, contact our sales team at sales@sksoft.com. 

As the top-selling Microsoft Independent Software Vendor (ISV) in the Dynamics channel, year after year we continue to perfect our current financial automation solutions and provide valuable built-in enhancements to the D365 Finance ERP. We take pride in delivering the highest quality of fintech automation that is certified and approved by Microsoft. Our solutions possess the capabilities to scale and help companies globally of all sizes and in any industry. With 27+ years of experience, we have been able to develop advanced functionality that works with any bank and any format worldwide. To wrap up another successful year, we wanted to provide a summary of all the new releases we have added to our product offerings in 2022.

At the end of 2021, we introduced four new modules to the market:

Supply Chain Finance

We built the Supply Chain Finance module to give organizations the ability to automate their accounting needs throughout the SCF loan repayment process directly within their D365 F&O ERP. Our SCF management solution allows companies to streamline the process of getting invoices to the provider and settling those invoices with the provider when due, all on embedded in the D365 platform. Either based on invoice due date or a funding file from the SCF provider, our solution resolves the payable to the original provider and automatically generates an invoice payable to the Supply Chain Financing provider. That invoice can then be processed through normal payment processing including our APEFT solution.

Bank-to-Bank Transfer

Another advanced enhancement we introduced to the market this year is our Bank-to-Bank Transfer solution for D365. Specifically designed for companies with complex banking structures, our Bank-to-Bank Transfer module streamlines the manual process of signing onto a bank portal to initiate transactions between multiple bank accounts within the organization. The solution automatically tracks and records the bank transfers into a D365 journal for easy reporting and easy bank statement reconciliation.

Customer Reimbursement

To simplify the procedure of generating customer reimbursements within Microsoft Dynamics 365 Finance, we launched our Customer reimbursement automation solution. With our customer reimbursement solution, you can automate the process of issuing electronic refunds and reimbursement payments to customers with credit balances. The process for customer reimbursements in the Standard D365 ERP is to create a vendor and bank record, linking the vendor and customer accounts, and moving the customer credit balance to the linked vendor and payment of the vendor. During this process, the user must make sure to keep both the customer and vendor bank account in sync when changes are made. To solve this limitation, we built a customer reimbursement solution that fully automates customer reimbursements with inbound and outbound files and journal updates.  This includes enhancements to the proposal process that allows you to select thresholds for amounts and age of credit balance to trigger a reimbursement.

BankFabric

To heighten security and simplify administration over the storage and transmission of banking files, we introduced our hosted BankFabric solution in 2022 to replace the legacy  “FileHub” solution. Seamlessly integrates with D365 Finance, our module provides unparalleled security through eliminating the need to download sensitive banking files to the desktop or to maintain a separate server. BankFabric is a Software as a Service (SaaS) solution that is completely hosted in Azure. Our solution provides a single easy-to-use interface to manage all banking connections including instances, environments, and banks using one URL. BankFabric integrates fully with the most recent Dynamics 365 Finance version as a part of our Treasury Automation Suite.  This solution now supports both API and file-based SFTP connectivity with hundreds of banks, globally.

Introduced Premium Treasury Automation Suite

To support companies with complex banking footprints and advanced automation needs, we introduced our Premium Treasury Automation Suite to the market last year. The Premium Treasury Automation Suite comes with additional banking formats and extends upon the automation provided in the Core Treasury Automation Suite. With the purchase of our Premium suite, the customer can enjoy credit card reconciliation, payment factory, customer reimbursement, multi-company EFT, and Bank-to-Bank transfer automation in addition to the functionality included in our Core Treasury Automation Suite. Additionally, this feature-rich suite includes four bank formats instead of just the two included in the Core Treasury Suite.

Deep Dive of Each Quarterly Release in 2022

Treasury Automation Suite 11.4 – Quarter 1 2022

In quarter 1 of 2022, we built additional features for our bank reconciliation, AReSettlement, and direct debit modules. To enhance the automation in our Bank Reconciliation solution, we added support for multi-currency bank accounts. We designed this feature to aid our European customers who conduct business internationally. The added automation allows bank accounts to be reconciled while holding multiple currencies.

We extended the functionality within our AReSettlement module to auto-settle AR Payments. Our auto-settlement feature took our AReSettlement solution a step further by automatically matching any unapplied payments and credit memos to invoices within the ERP.

For our direct debit module, we added numerous new features to streamline the process of adding or removing mandate agreements to customer accounts, auto-creating bank accounts, and updating the payment method and cancelled mandates fields.

Also, new to the market in Q1 of 2022 was support for BankFabric Library (BFL) formats. Within this release, we simplified the process for changing and adding formats. No longer does a Microsoft deployment need to be scheduled/executed when adding a new format, nor modifying existing.  To be able to utilize these BankFabric Library formats, the customer must be on the Treasury Automation Suite version 11.4 or higher.  These BFL formats can be used by both our BankFabric and our legacy FileHub customers.

Treasury Automation Suite 11.5 – Quarter 2 2022

For the Treasury Automation Suite 11.5 release, we added additional features to our AP EFT+, Customer Reimbursement, and Bank Reconciliation modules. To the AP EFT+ and Customer Reimbursement solutions, we built a feature that gives the ability to auto-configure bank account detail setup when the payment type does not require a bank account. We added further enhancements to our APEFT solution, like the ability to automate important eBanking details records during processing. To support the matching of multiple payment journals within the same day, we enhanced the journal summary rule within the Q2 release to our Bank Reconciliation solution.

Treasury Automation Suite 11.6 – Quarter 3 2022

Within the Q3 release, we added additional features to our Bank Reconciliation, BankFabric, and AReSettlement modules. For Bank Reconciliation, we built new options for GJ mapping lookup and expanded data capture. In BankFabric, we added API support for our APEFT and Bank Reconciliation modules. Lastly for AResettlement, we added configurable field delimiters.

We hope you enjoyed the recap of our past releases and new modules. We have some exciting new releases in Q4 regarding our API capabilities. Follow our release updates page to get more information on what’s coming up.

 

Choosing a treasury automation solution is a difficult decision. Countless solutions are on the market, making it hard to decide which one is the best for your business needs. Before deciding on a solution, businesses should first ask whether they want a solution that is connected to Microsoft’s ERP, often described as a bolt-on solution, or an embedded solution that is a part of the ERP’s user interface.  

There’s a couple of questions that treasury teams should answer before deciding between a bolt-on solution and an embedded one.

1. Does connectivity to the ERP matter to your team? 

An embedded treasury automation solution in Microsoft Dynamics 365 Finance means everything can be done within the Microsoft Dynamics platform. The look and feel of the solution will be the exact same as the standard Microsoft Dynamics 365 interface. With an embedded solution, you can automate tasks directly within the ERP and centralize accounting processes within one system. Since everything is housed in one place, data transfers are faster, which increases productivity.  

For bolt-on solutions, they typically are connected to Microsoft Dynamics 365 through a series of connectors such as APIs built to send information to and from their solution to the ERP. Bolt-on solutions are not embedded so to connect and use these solutions, you must log into the solution outside of Microsoft Dynamics 365. The connectors to the ERP pull data from the ERP, which is used in the accounting and treasury automation processes that are completed in the bolt-on solution.

2. How will data synchronization be affected by the chosen solution? 

Since the embedded solutions in Microsoft Dynamics 365 are built within the ERP, there is no data to sync between the solution and the ERP. The data store used to run the embedded solution is the same store that is used by the ERP, which means the data is always in sync in real-time. This also means there is not a need for additional connectors, which could be another potential failure point for bolt-on solutions. 

For bolt-on solutions, since they are outside of Microsoft’s ERP, uploading data to the ERP and pulling data from the ERP can be at times tedious. Data synchronization and integration issues may occur since bolt-on solutions do not have the same data store as the ERP. As a result, bolt-on solutions may require extra implementation time and testing so that data flow between the solution and the ERP are without error. When considering a bolt-on solution, it is important to ask the vendor or the partner about this particular issue to ensure your team minimizes unnecessary obstacles in the implementation process. 

3. What are your team’s user experience preferences?

The look and feel of a solution matter when considering bolt-on versus embedded solutions. Preference plays a significant role in this decision where treasury teams must consider whether they like using the ERP for most of their tasks. By doing most tasks inside Microsoft’s ERP, accounting teams have the advantage of automating processes such as bank reconciliation and AR cash application all within the same interface. Opting for an embedded solution allows teams to link multiple processes together and coordinate faster completion of AR and AP tasks within the ERP since built-in solutions can leverage and expand upon the standard workflows. Having an embedded solution with an interface matching the rest of the ERP allows users to learn a single set of procedures for things like personalization, grid behaviors, shortcut keys, and alerts. Embedded solutions take full advantage of the ERP’s functionalities to make an overall robust platform for users. 

If a team decides that the ERP is difficult to navigate, a bolt-on solution may be the way to go since bolt-on solutions have the flexibility to design a user interface that is intuitive and easy to navigate. However, since the bolt-on solution has its own interface, it may duplicate existing features that are in the ERP. These solutions also may appear to be more customizable through their specific functionalities outside the ERP. However, your team will have to weigh the benefits of customization to the additional implementation and testing time required for the data transfers between the solution and the ERP.  

4. How smoothly will implementation go if we choose embedded versus bolt-on solution?

With an embedded solution, you don’t have to learn another user interface which simplifies the onboarding and training process. For bolt-on solutions, teams typically have to learn how to navigate the interface of the bolt-on solution and the ERP’s interface, which means extra training and onboarding time for treasury teams. In addition, since bolt-ons involve an integration, the integration and synchronization between the ERP and bolt-on solution adds extra testing and verification tasks. 

Implementations for embedded solutions typically go smoother since they are built to work within the ERP while bolt-on solutions may require further customization and extra installations to achieve the desired automation level.  

How to choose the best solution for your business?

Embedded and bolt-on solutions each have their own advantages and disadvantages to them. It is up to the treasury and accounting teams to decide what works best for their needs. For many teams, embedded solutions provide ample advantages with its common interface with the ERP. The ease of use of embedded solutions is a significant highlight. Accounting teams have no need for outside integrations. If your team decides that an embedded solution is not the way to go, then they should work with a reliable vendor and partner that can help them choose a solution that best works for their needs.  

If you are considering an embedded solution in Microsoft Dynamics 365 Finance & Supply Chain, SKsoft has experts in embedded banking and treasury automation that can work with your team to maximize your automation capabilities. To get started, contact SKsoft at sales@sksoft.com. 

Financial technology is estimated to grow over 7 trillion dollars by 2026, according to Bain. That’s a lot of money when looking at how the concept of financial tech wasn’t as popular before the digital transformation boom. Fintech will only continue to grow as an industry due to customer-driven demand for financial products that improve customer experience and increase financial inclusion.  

The pop up of easy-to-use digital financial products hasn’t been an overnight transition but has been a strategic move of tech and financial leaders looking to create a more open, modular financial ecosystem. An integral part of this fintech boom lies in the offering of financial products and services that are accessible, customizable, and cost saving. Many fintech startups began by providing digital banking services and payment facilitation. However, now, some fintech leaders who initiated the boom are looking for ways to achieve the ideal: embedded finance.  

Embedded finance cannot be achieved overnight but there have been conscientious moves towards this idea through automation. Automation of financial processes typically involves the combined use of rules-based robotic process automation (RPA), machine learning (ML), and artificial intelligence (AI) to automate manual financial tasks that are built within a cloud-based infrastructure. Instead, being an on-premises software, financial automation can be accessed and operated from anywhere, allowing businesses the flexibility to work remotely or have hybrid workplaces.  

Many companies already offer financial automation solutions but do not necessarily incorporate embeddedness into their solutions. As a result, companies using these technologies may have to buy multiple types of software and make the effort to synthesize the information from these systems together. As you may think, this task can be quite daunting for a company who may not have the manpower to do this, which is why more and more companies are searching for embedded financial automation solution providers. 

The Business Case for Making Financial Automation Embedded 

Embedded financial automation (EFA) means that the entire user experience happens within one centralized platform where a user can complete multiple automated financial processes. This allows for teams to use different financial products within one application without having to log out and use another application. Working within an EFA solution is a truly personalized experience where the solution is completely branded to the main interface. This experience grabs data from multiple sources, which creates seamless application flow and a friction-less user journey. For centralized access to multiple processes, an EFA solution may employ deep integrations with multiple partners or rely on internal development of financial process automation. As a result, EFA creates a multi-product financial ecosystem.  

Features and Benefits of Embedded Financial Automation

EFA is an investment and can offer companies who effectively deploy it a competitive edge. What makes EFA particularly shine is its robust features: data-driven decision-making capabilities, collaborative cloud-based environments, multi-currency and multi-company flows, embedded risk management, and automation of financial processes. These features provide an array of benefits that drive ROI and increase productivity in the long-term. 

Financial Analytics

Financial automation integrates accounting and treasury data into one centralized location which either could be in an ERP system or a standalone financial automation solution. All accounting and financial data is synthesized into real-time reporting and analytics so your team can understand the health of your cash flow and liquidity rates. Integration of data visualization applications, such as Power BI, have also become common, which has made it even easier for teams to create dashboards and report tracking progress on KPIs and working capital optimization.  

Liquidity Management

Treasurers often struggle with cash flow optimization and effective management of working capital. These problems are solved with a treasury automation solution that is equipped with cash flow forecasting and positioning. With these capabilities treasury teams can optimize their business’ cash resources, predict future fluctuations in asset usage, and engage in scenario-based cash planning. 

Embedded financial automation also makes it easier to access liquidity itself because of the coordinated use of multiple financial processes, which in turn optimizes working capital. For example, when a company uses AR automation and collections management together, they can convert receivables and tied-up debts into cash which increases a company’s cash availability. As a result, companies who effectively use liquidity management to their advantage can cut down debts and fund short-term investments.  

Automation of financial processes

To manage liquidity and optimize working capital, automation of vital financial processes is embedded within EFA solutions such as bank reconciliation, cash application, settlement automation, and vendor payment automation. Particularly, the automation of bank reconciliation and AR cash application have been the steppingstone for treasury teams to first get a taste of what a digital transformation initiative looks like. 

Once acclimated to automation, treasury teams can look further into using automation to its full potential. This expansion has led to a surge in payments automation. According to Bain, payments and lending management will continue to be the most popular embedded financial products. With the rise of payment facilitators such as Square and Plaid , their capacity to underwrite merchants for banks has allowed business-to-consumer (B2C) to become more widespread where merchants have the flexibility to accept payments across a variety of channels. API-based solutions like SKsoft BankFabric solution can send bank data to and from the bank directly into the ERP, allowing for real-time updating of transaction and balance information within the ERP.  

Business-to-business transactions, such as accounts payable and accounts receivable, have been a long-standing integral part of financial automation but have not had the same level of traction as B2C payments. This is mostly due to continued reliance on ACH and checks by many mid-market to large companies in the U.S. However, these same companies have been increasingly rolling out digital transformation initiatives focused on B2B transactions because of the COVID-19 pandemic and the shift to remote and hybrid work. These companies have found that having one centralized solution where a treasury team can manage Accounts Receivables (AR) and Accounts Payable (AP) in one place will save time and costs in the long term.  

Accounts Payable and Accounts Receivables

With AP and AR, treasury teams can become completely paperless since automated solutions require no paper invoicing and billing. The treasury process most affected by automation is AP processing, which is considered one of the most costly and inefficient treasury processes when done manually. Teams that still use a manual AP process will continually have problems paying vendors and lowering their company’s debts. By using an automated treasury management solution that includes AP processing, businesses can decrease DSO and DPO along with minimizing late payments through the automatic uploading and matching of vendor invoices to existing accounts. When AP automation is coupled with AR automation, businesses can optimize their cash conversion cycle and minimize their liquidity risks long term.  

Digital Banking and Virtual Cards

Other facets of finance are also being affected by embedded financial automation solutions. Since fintech startups envision a future where all financial needs are met in one system, fintech leaders have been looking for ways to integrate banking and virtual card solutions within their product roadmaps. Banking products and digital card issuing services will continue to rise as more financial institutions and SaaS companies build APIs. Startups like Marqeta are releasing products that offer businesses the capacity to create their own financial products where businesses can create their own credit cards without having to go through the hurdles of getting bank approval. Growth in this industry will come from continued integration with larger financial institutions and the extension of the connectivity of these products. To achieve this, data fabric technology will assist SaaS and BaaS companies alike to extend their products’ integration with banks across the world. 

Collaborative work environment – remote friendly workspace

In an automated system, users can enjoy seamless coordination with team members where they can work simultaneously within one centralized system that tracks changes and speeds up the approval process through automated email notifications. The integration of approval workflows notifies team members of pressing tasks through email, chat, or text notification. EFA can not only achieve integration internally but externally through connecting to a countless number of banks. These solution providers create robust relationships with banks so that information going to and from the bank is seamlessly exchanged, which can either be done via file transfers or utilizing a bank’s API.  

Multi-currency flows and multi-company capacity

In manual treasury processes, having multiple currencies and subsidiaries causes some significant pain for treasury teams because this means manually converting foreign currencies to domestic currency while simultaneously managing multiple payment journals. On top of this, treasury teams must manage all these processes in an error-free manner, which is extremely difficult to do. These problems are eliminated when using an automated treasury management solution. Instead of manual FX conversions, this type of solution automatically converts foreign currencies and enables trading in multiple currencies so that businesses can work with global suppliers and sell internationally. The payment journal process is also significantly streamlined since payments in foreign currencies are automatically converted to the domestic currency and recorded. This automatic conversion is typically done through an FX settlement module, which analyzes real-time exchange rates and processes payments with the best rate.  

For enterprise businesses that have more complex needs, there are a range of solutions that can offload pressures on their treasury teams. Many teams have chosen in-house banking to manage the complex external banking structures that enterprise businesses typically have. With automated in-house banking, like SKsoft In-House Banking module, intercompany invoices and vendor payments can be completed within a single ERP system and bank account management for each subsidiary can all happen in one system. For treasurers, an in-house banking powered by automation has meant centralized control over all subsidiaries’ accounts, transparency over the entire banking sub-ledger, and better management of cash and balances.  

Risk mitigation

Competitors in EFA will also continue to branch out and continue to automate the financial processes that their solution is currently missing. One key area that EFA solution providers will continue to prioritize is risk management, which is of upmost importance to companies who regularly handle customer data. Risk management is an integral part of these systems where high-quality solutions incorporate tokenization, encryption, and compliance to global security standards. Tokenization ensures secure end to end payments through substituting sensitive data with non-sensitive data. When built into an ERP solution, many solutions leverage the built-in security roles and security levels of this software, which significantly insulates companies from potential fraud and risk. Security regarding EFA will continue to be a key issue particularly for lawmakers who are looking to minimize fraud and data leaks through the implementation of Know-Your-Customer laws.  

How to transition to EFA

Transitioning from manual processes to EFA can be a daunting task for many mid-market and enterprise companies. However, treasury teams are not alone. Consulting firms and fintech providers are readily available to help companies transition from manual to cloud-based processes.  

Before reaching out to an external organization, it’s generally recommended to look internally to assess whether the transition to EFA is needed. As a first step, treasury and accounting teams should consider current work processes, particularly which processes can be automated first, and which processes should be automated later in the digital transformation initiative. Slower adoption of more complex automated solutions may be required, especially when your team is considering automating a sizable number of processes. It’s completely normal for these transitions to take years so treasury teams should not be rushed to immediately implement automation.  

Treasury teams should also thoroughly evaluate their current treasury management software before automation. This exercise will help your team identify which financial automation solutions work for your company and will pinpoint which weaknesses in your current treasury management need to be addressed.  

Here are some additional questions your team should consider: 

  • What is the strength of your data collection – how could it be improved with EFA? 
  • How effective are your current risk management processes?
  • Does your team have access to forecasting?  

After considering these questions yourself, discuss with your treasury team the merits of automation and where they see it being optimized. It’s vital to use your team’s expertise especially when considering a significant digital transformation initiative. After considering the pros and cons of expanding your financial automation capabilities, it is important to identify the internal stakeholders that will drive this initiative and from there, form an ad-hoc team. These stakeholders can come from a wide range of departments such as from your C-Suite to middle managers.  

After forming a team, find a reliable partner or solution provider that can customize financial automation to your needs. You need to work with a team that can be flexible and has the time to educate your team on the software. After putting money into automation, you need to ensure that you are working with a solution provider that has a comprehensive onboarding process so your team can hit the ground running after the software goes live. These steps will help drive ROI once your EFA solution is in operation.  

If your team is currently looking for such a partner, it may be worth it to reach out to your ERP system if your company already uses one. All prominent ERP systems, such as Microsoft Dynamics 365 and SAP, have built formidable networks with consultants who can help your team achieve greater automation. If your team currently employs Microsoft Dynamics 365 Finance & Supply Chain, SKsoft can be a great resource for expanding your financial automation capabilities. Our consultants with over 20 years of treasury automation experience can analyze your current financial processes and can configure an embedded solution based on your team’s pressing needs.  

If your team is interested in enhancing your current automation within your D365 Finance ERP system email sales@sksoft.com to learn more about our current product offerings. 

For many businesses, the pandemic caused an increase in credit card transactions due to the surge in digital payment methods. Prior to COVID-19, the world was already moving away from the use of cash to more modern payment methods. However, the lockdown accelerated this transition with one of the only payment methods being through credit card. With the rise of cashless payments, many organizations saw a surge in the amount of credit card payments they were receiving. The movement to cashless payments has increased the complexity of reconciling credit card statements.  

What is Credit Card Reconciliation?

A credit card settlement reconciliation is ensuring that each settlement transaction on your credit card statement matches up with a recorded customer payment in your ERP. It is also making sure the settlement received from your depositor is correct for the credit card payments received. To maintain accurate reporting, organizations must verify each transaction listed on the statement. Most businesses reconcile their credit card transactions and deposits daily. 

The Manual Credit Card Reconciliation Process 

When credit card reconciliation is conducted manually, “all is well” as long as the settlements balance perfectly to the expected amount. However, if there is a mismatch, it can be very tedious and difficult to find the individual transactions that make up the discrepancy. If the discrepancies cannot be found in a timely manner, it may hold up financial closing at the end of month as well.   

The number of credit card transactions on your monthly statement is likely to only increase. A McKinsey Global Payment Report projects that there will continue to be a further decline in cash usage globally and an increase in credit card and digital payment methods. With the projected rise in credit card transactions, it will be increasingly difficult for your organization to maintain a fully manual process and therefore it may be time to start evaluating automated options. 

Why Credit Card Reconciliation is essential 

While manually reconciling credit card statements is a tedious and mundane process, reconciling your credit card transactions is a vital procedure to maintain the financial health of your business. The credit card reconciliation procedure verifies that you are getting proper credit from your processor for the credit card payments you took in. Without a reconciliation process, your business loses the capability to accurately track that your incoming credit card payments are recorded properly.  

How embedded RPA technology can transform your credit card reconciliation process:

It is becoming increasingly prevalent that manual accounting processes are not viable long-term. For companies, this will mean undergoing a digital transformation to replace outdated and inefficient procedures. Forward-thinking business leaders have seen the significant benefits that automation delivers and have jumped on the trend of replacing manual processes with Robotic Processing Automation (RPA). With the surge in credit card transactions and digital payments, it may be time for your business to consider adding an automated credit card reconciliation solution to your digital transformation plan. Reconciling your credit card statements is a monotonous process that can easily be automated through an RPA. The following are some of the ways adding embedded credit card reconciliation technology can benefit your business.  

1. Embedded Technology Centralizes Data and Increases Visibility

Opting for an embedded solution, or software built within another system, is an excellent choice to unify your data and increase visibility and collaboration across departments. A popular type of built-in solution is software that is embedded within an Enterprise Resource Planning System (ERP). For example, SKsoft credit card reconciliation module is embedded within Microsoft Dynamics 365 Finance. Selecting an embedded credit card reconciliation solution will make it easy to record transactions within one centralized system fostering collaboration through easy access to valuable information and automatic synchronization of data.  

The alternative would be a bolt-on solution, or a solution that works outside the main platform and doesn’t integrate seamlessly with the main system. Often bolt-on solutions have connectivity issues, complex interfaces, and have duplicate features that you receive in your main interface. Opting for a disparate bolt-on system leads to issues down the road due to lack of organization, accessibility, and a centralized database to maintain valuable metrics.  

 2. Robotic Processing Automation Automates the Credit Card Reconciliation Process

Practically all credit card reconciliation solutions utilize some form of RPA to automate most of or all the credit card reconciliation process. Leveraging credit card reconciliation automation frees up your accounting staff to focus on more important value-added tasks that ultimately grow your business. In a survey conducted by CIODive, 73% of US workers said they would be happier if automation replaced non-core functions. On top of managing your payroll, inventory costs, collections, and budgeting, your accountants do not need to waste valuable work hours doing manual credit card reconciliations.  

 3. Quickly Identify Discrepancies

Using RPA technology, credit card reconciliation solutions allow your staff to easily recognize any transactions that do not align with the recorded payment or deposit in your ERP. Automated credit card reconciliation eliminates the need for the tedious process of finding payment or deposit discrepancies. Most credit card reconciliation solutions will display the discrepancies in an organized dashboard allowing your accountants to quicky track down the transactions that do not match to the ERP.  

4. Invest in more profitable expenditures

According to Forbes, intelligent automation typically results in cost savings of 40% to 75% with payback ranging from several months to several years. To determine exactly how much money adding automated credit card reconciliation will save your business your organization should conduct a cost-benefit analysis while exploring solutions. If it is indeed profitable for your business to invest in RPA to remove the manual credit card reconciliation process, your business can reallocate the funds to more profitable investments like research and development.  

How SKsoft Leverages Embedded RPA to Automate the Credit Card Reconciliation Process

If your business is currently using or planning to implement Microsoft Dynamics 365 Finance, SKsoft’s embedded credit card reconciliation module may be the right fit for you. Our credit card reconciliation solution allows you to import your credit card settlement statements into the ERP. Using RPA technology, our solution then matches the transactions in the statement to the payment record within the ERP, matches the settlement deposit, and can automate the recording of credit card fees. SKsoft’s credit card reconciliation module is fully embedded within your D365 environment. It has the same look and feel as the D365 Finance interface and is certified and approved by Microsoft before every release. Our solution resolves popular pain-points in the credit card reconciliation process such as human errors, disparate data sources, and managing an increased volume in credit card payments. If you are interested in learning more about our embedded credit card reconciliation module for D365, contact us today at sales@sksoft.com to set up a demo.  

 

An effective risk management procedure starts with maintaining security over your private banking files. Lack of dependable protection over your information is a serious gap within your business’s fraud prevention process and drastically increases the risk of a security breach. According to a 2022 report from PWC, 46% of businesses reported experiencing fraud, corruption, or other economic crimes in the last 24 months. Your sensitive banking information is a prime target for a financial fraud incident. With this in mind, SKsoft launched the BankFabric module in our Treasury Automation Suite for Microsoft Dynamics 365 Finance and Supply Chain to safely transfer your banking files from your ERP to the bank.

Why BankFabric

Within standard D365 Finance and Supply Chain it is difficult to securely transfer your files to and from the bank. Without added automation your business must manually upload files to your desktop and then upload them to the bank’s web portal. Using this tedious manual procedure is not only inefficient but is also a huge security risk. Our Azure-hosted BankFabric solution addresses this gap in standard D365 through providing an easy-to-use interface to store and transmit your banking files.

Through secure and embedded technology BankFabric heightens security and streamlines your banking integration process within your D365 environment. Our solution provides maximum security over your information through storing your banking files and communication keys within your Azure subscription. Your private files are completely secure, SKsoft has no right to access them unless you configure permissions. In addition, BankFabric protects all your banking connection parameters, meaning your URLs, login credentials, encryption keys etc.

On top of providing complete security over the storage of your banking files, BankFabric supports file transfers in any format to any bank(s) worldwide. Our BankFabric module is a robust addition to our Treasury Automation Suite. Regardless of the size of your organization, our suite of financial automation modules can scale and streamline your processes in any industry.

Setting Up Your BankFabric Account

With its advanced embedded technology, you would think BankFabric would require a complicated set up and configuration process. However, most of the set-up and configuration to wire BankFabric to your subscription is streamlined with many parts automated within Azure Cloud Shell. Below is a simple 5 step guide on the setup of your BankFabric account:

1. Create your BankFabric Environments

The first step to setting up BankFabric is creating the environments. In BankFabric, all environments are hosted in a single “account.” These single “accounts” represent a customer. Access can be granted to multiple users by the administrator through their email address, allowing them to view the dashboard of all accounts that the user has access to. The dashboard overview feature increases visibility and fosters collaboration across departments.

There are two types of users within our BankFabric solution, an account contact who is typically from the sales process and an account admin, who usually has a technical role. Your account admin will be responsible for adding and setting access for subsequent users. Access to the BankFabric portal is authenticated and authorized through a standard Microsoft AD login.

Once your account is set up, and an account admin is assigned. The admin can allow access to your employees or third-party vendors to assist you with infrastructure or administration. Access can be granted with permissions tailored to the role of each user. When you access your account, you can configure any of the D365 environments you want to automate.

BankFabric can be configured to be turned on module by module within an environment, permitting a hybrid solution during rollout. From there you can add other options module by module, switching BankFabric on as you bring each banking module online. Secure PINs are auto refreshed on a weekly basis to ensure the maximum security between BankFabric and each of your D365 environments.

2. Accessing File Locations

The second component of setting up BankFabric is configuring your file locations. File locations are easily configured within BankFabric and are automatically maintained for each environment. Within D365 these locations are used within the Bank Reconciliation, Vendor Payment Automation, and Customer Settlement and all modules within our Treasury Automation Suite.

To further streamline the setup file locations are replicated across all environments. This eliminates the need to repeat the setup process across environments. New environments will inherit file location names, while still being in different storage accounts. This prevents any files from cross pollinating across environments. To maximize security all documents stored in Azure are encrypted at their destination.

3. Setting File Names

After setting up your file locations you will want to set your file names. Outbound files are set up in each environment. File names can be set by module or category, and names configured based on pieces, such as prefix, file number, date, time, and extension. Once a file name is configured, it is affiliated with the file location. With this setup, configuration within D365 is significantly improved since only a file location needs to be specified.

4. Secure File Transfer Protocol (SFTP)

The fourth component in the BankFabric set up process is SFTP configuration. SFTP set up is where connections to each bank are configured. URLs, login credentials, keys are uploaded, and a test connection can be conducted to ensure the SFTP configuration has been set up correctly.

All files going from D365 to Azure and Azure to your bank(s) can be automatically encrypted. Designated environments for production can be marked as such to exclude them from test usage.

Different SFTP configurations can be set up for separate environments and for your bank(s) of choice. Communication can be assigned to all environments or designated ones as required. Once it is set up, files are pushed and pulled automatically and can be viewed within each environment or module.

5. Importing Bank Files

The last step for setting up BankFabric is importing your bank files. For heightened security, the bank files in Azure can be configured for view only without downloading. Authenticated users can upload, download, rename, or delete files. Permissions can be applied by user, environment, and module-category. This is very helpful to allow open access and easy collaboration during testing, while narrowing the security exposure for your production environment.

Processing files can be fully automated regardless of whether they are in or out of D365. With all of SKsoft’s modules, automation features can be configured at various levels to best suit your business needs. For instance, with vendor payments a workflow completion step can automatically create the appropriate bank-formatted file, transmit it to BankFabric where BankFabric will store the file and transmit it to the bank. With inbound processing enabled, once the bank reviews the file it will send back an acknowledgement or transaction level file. Again, it’s stored in BankFabric and automatically imported into the D365 payment journal, marking the lines either accepted or rejected and posts the journal. The flow starts once the ERP workflow process is complete and can be fully automated end-to-end. This is the hallmark of Banking and Treasury automation.

6. Secure APIs

As APIs are becoming more common for bank integrations, SKsoft is working with banks to provide this newer connectivity option. With APIs there is no file created, but rather a direct connection and transmission of ERP to bank data (and vice versa). Our API solution is built right into BankFabric providing the same familiar interface for the setup and monitoring.

BankFabric with SKsoft

Shifting to BankFabric can significantly improve your bank integration process, providing more control and securing access to sensitive company information. Reach out to SKsoft today to learn more about how BankFabric can remove the need for third-party management tools through effortlessly consolidating files and processes, while streamlining access all within your D365 ERP. All future security and application enhancements to our Treasury Automation Suite will be “powered” by BankFabric.

For more information, contact SKsoft today.

Robotic Processing Automation is revolutionizing how companies function with its ability to automate manual tasks. Some of its many capabilities involve being able to upload countless payments automatically or sending automatic email notifications once an order is completed. Its use of bots can typically replicate any redundant business processes.

Now more than ever, companies are deploying RPA as the switch to automation is surging across industries. According to TechCrunch, RPA is the fastest growing enterprise software, where the market is growing at a rate of roughly 60% per year and will only continue to grow until intelligent automation solutions are readily available and accessible.

RPA software market is projected to reach roughly $6.5 billion in 2025, according to a recent Forrester study. This number is not shocking considering how companies need to automate to stay competitive. Up to 50% of companies’ current tasks are considered manual and outdated, meaning that automatizing certain work processes could mean businesses gain back more time and save on costs. This shift will become more necessary as companies reorganize and make room for more hybrid or remote workers.

RPA-powered solutions are only the beginning. Many tech companies are predicting the eventual shift to intelligent automation (IA) via machine learning (ML) and artificial intelligence (AI). When deployed, these tools can fast track companies into having real-time forecasting and analytics-driven decision-making.

For Accounts Receivables processing, RPA is a welcome solution to fixing the tedious parts of traditional AR processing. For one, traditional AR processing is predominantly more time-consuming and inefficient since payments must be manually collected, checked over by a team member, and manually matched to an existing outstanding debt. RPA cuts out these tasks when built into the heart of an automation solution where payments and remit information is automatically uploaded, matched to accounts and settles invoices with minimal exceptions.

Now, with this technology, companies have radically altered how they process AR where teams can work simultaneously within one system to track exceptions and coordinate the settlement process. Instead of waiting for a colleague to finish a task, RPA-powered solutions notify whoever is next on the approval process via email. The settlement process runs smoothly with these RPA built-in features so no extra emailing or nagging is needed!

This collaborative element is not the only feature companies can utilize in an automated AR Settlement solution. Frequently found in best-in class, embedded solutions such as SK Global Software’s AReSettlement solution, there are four key features that businesses are using to significantly streamline their AR processing.

Customizable Matching Rules – Completes payments faster than ever

Payments can now be processed with the matching rules built into an automated AR settlement solution. These matching rules allow companies to set custom rules for matching funds to invoices to ensure the highest level of automatic settlement while minimizing exceptions. This feature intuitively learns a business’ behavior, so it gets better with matching funds to invoices with each batch job.

Intelligent Grid Systems – Easily highlight errors

An automated AR Settlement application typically has a grid system, such as SK Global Software’s Payment Application Workbench, where unresolved invoices, duplicates, or other errors are highlighted in one centralized location. Businesses save significant time with this feature since they can identify exceptions more quickly and can eliminate burdensome tasks involved with error finding.

Businesses who don’t utilize an RPA-powered solution are faced with less cash on hand and more downtime due to the wait times typically associated with error identification and correction in a traditional AR system. Not only will businesses who switch to RPA cut out these problems, but they will find that automated AR processing becomes more accurate in finding errors over time due to the intuitive matching and field mapping capabilities.

Standardization of the AR settlement process – Increases customer satisfaction

By creating standardized processes, redundant tasks and inefficient work can be eliminated. Built-in, autonomous work processes can reduce the time it takes to process transactions and can decrease the average days sales outstanding (DSO). This translates to better cash flow management and quicker turnaround for billing customers. These features speed up the settlement process, which has increased overall customer satisfaction for businesses. Now with these RPA-powered features, businesses can invest time focusing on the customer!

Multi-Company and Multi-Account Capacity – Eases scalability concerns

Typically, with traditional AR systems, having multiple bank accounts and companies is tedious. These outdated systems have limited functionalities and capabilities, which inhibit growing businesses. With an RPA-powered AR system, businesses don’t have to worry about whether their software can handle one more company or more customer transactions. Instead, these solutions are built to be flexible and scalable in nature. An unlimited number of transactions or invoices can be processed in these automated AR solutions while costs per invoice or transaction processed dramatically go down.

AReSettlement with SKsoft

Now is the time for businesses to switch from traditional to an RPA-powered AR solution. Businesses who are looking to improve productivity, cut costs, and scale their operations should seriously consider the advantages of an automated AR processing solution, like SKsoft AReSettlement. This best-in-class, embedded solution in Microsoft Dynamics F&O is configurable to any team’s needs and gives your team visibility and control over your AR processing.

Close to 68% of businesses are going to invest in automated solutions like this one in the next couple of years. Don’t wait to catch up to your competition and instead, invest in a sustainable solution like ours. Our consultants with over 20 years of treasury format experience will help your business save money and build a solution that works for your team’s needs. To learn more about our AReSettlement solution, email sales@sksoft.com to schedule a demo with us today.

More than ever, treasury and finance departments globally are needing automated solutions to keep up with the demands of remote work. Based on the Association of Corporate Treasurers’ (ACT) recent Business of Treasury 2022 report, 66% of their survey respondents stated that remote work and the pandemic has increased the adoption of automated technology. With the move to remote work, companies are trying to find ways to streamline their treasury management and overwhelmingly, treasury automation has allowed them to work collaboratively and streamline operational tasks in a cloud-based, integrated platform.  

When successfully using a treasury automation solution, your business can oversee the entire banking and payment processes while factoring in your company’s macroeconomic environment. Together, this allows your company to make data-driven decisions, keep up with competitors, and satisfy customers.  

If your company is not completely sold on the idea of further automating your treasury functions, consider some of the benefits of using additional automation in your daily business operations.  

Advanced Analytics and Reporting

When a business starts using more automated processes, they have an immediate overview of their entire banking and payment landscape. Dashboards and grids showing payment history and outstanding balances built within treasury automation solutions allow companies to gather real-time data on their business processes, which can drive better reporting, analytics, and predictive forecasting. Alongside these reporting capabilities, treasury automation solutions feature robust audit trails by tracking every activity completed. These audit trails can assist teams in identifying KPI performance and can help them complete their financial goals. Together, these built-in capabilities enable a better assessment of a company’s cash position and drive working capital optimization. 

Boost in Productivity

By having features like advanced analytics, your team can better anticipate and fix problem areas in your team’s treasury processes. Teams that have utilized RPA-powered solutions, like treasury automation, have seen significant increases in productivity. According to Deloitte, 86% of companies have increased their productivity and have minimized workflow bottlenecks through treasury automation. Most importantly, treasury automation saves teams from countless hours of rework. Gartner found that 25,000 hours of rework were eliminated once financial teams used treasury automation. This reduction of rework creates more opportunities for higher team engagement in more value-added activities. 

Eliminate Redundant Costs

In a Deloitte survey, 59% of the companies surveyed had a reduction of costs when they switched to a treasury automation solution. Instead of taking days to reconcile accounts or having manual payment processes, companies who deploy treasury automation solutions can automatically reconcile bank transfers and minimize the costs associated with processing payments. Companies can not only save money, but they can also have better cash flow as a result of treasury automation. Since automated solutions can process accounts receivables faster, companies can lower their DSO and increase their access to cash, which can significantly help the scalability of growing companies. 

Reduction of Errors

Through the deployment of RPA in treasury automation solutions, the bots used in RPA can complete financial processes virtually error-free when completing rule-based jobs. Line-item matching becomes more accurate over time as these bots learn your company’s behavior, which reduces errors over time and increases batch job accuracy when processing invoices and transactions.  

Cross-currency transactions is one problem area where companies faced higher risk of errors due to it being predominantly processed manually. This tedious process is streamlined with built-in FX settlement modules in many treasury automation solutions. This normally long multi-hour process happens in a matter of seconds with an embedded connection to an FX trading platform.  

Greater Control over Treasury Processes

When dealing with manual treasury processing, it can be a hassle trying to manage all processes in disparate systems. With an embedded treasury automation solution, finance teams work in a centralized solution that has many processes in one place, making it easy to overview the health of your cash management system. This solution allows your team to easily delegate tasks and simplify complicated workflows. However, not all automated solutions are alike, and some are bolt-on solutions that are not embedded in an ERP system, which makes it difficult for treasury teams to integrate accounting data directly into these solutions. This problem is the main reason why companies are now looking for embedded solutions that are centralized within ERP systems. Embedded solutions that have the same appearance as your ERP, like SKsoft Treasury Automation Suite, don’t create extra hassle of learning another system or interface and instead integrates and keeps all your accounting data in one place.  

Better Risk Management – Integrated Risk Mitigation

One of the biggest worries of a treasury team is the protection of company data. Manual treasury processes increase the chance of a data leak and fraud. A potential data leak is significantly minimized with the use of a treasury management solution that can automate end-to-end processes. Solutions that incorporate features like SFTP, files encryption, secure storage and transfer of payment files, and PCI-compliant process for credit card processes, greatly reduce security risks. These solutions also make it easier than ever to maintain full compliance with the emergence of global and regional data security standards and financial messaging standards like SWIFT, SEPA, and ISO20022. 

Collaborative Workspaces

Finally, embedded treasury automation solutions have a centralized, cloud-based location where treasury teams can work simultaneously on projects and can assign each other tasks. Through the recent move to AI and machine learning, teams can now also set up automatic work processes which can streamline approval flows and daily tasks. Together, this solution minimizes data silos and helps treasury teams achieve higher levels of productivity and integration.   

Save Time and Money with SKsoft Software’s Treasury Automation Suite

The benefits of treasury automation show the obvious cost-saving and efficiency that companies can achieve when using an automated solution. With SKsoft Treasury Automation Suite, your business will gain all the benefits that treasury automation can offer. With our consultants who have over 20 years of experience in treasury management, your business will improve your treasury management significantly while utilizing our best-in-class, embedded solution in Microsoft Dynamics 365 Finance and Supply Chain.  

To learn more about our TAS solution, email sales@sksoft.com to schedule a demo with us today. 

The pandemic caused a significant disruption within the payments industry. It accelerated many businesses’ digital transformation programs and pushed towards the rise of fintech trends such as digital banking, borderless payments, and blockchain technology. With consumers moving to contactless and online shopping, digital payments and automated systems have become increasingly popular. Today once again your company must turn to fintech solutions to continue to expand your business amidst uncertain financial times. 

With the economic uncertainty you may be tempted to cut financial technology expenditures. However, this could be a costly mistake. The global fintech market is projected to continue to grow at a compound annual growth rate of 26.87% up to 2026. As the industry continues to expand fintech automation will keep becoming increasingly more advanced. According to a report conducted by Accenture, technology laggards will leave behind 46% of their potential revenue in 2023. Laggard companies that failed to automate have already bypassed some of their potential profit gains. The gap will only continue to grow as payment automation companies release improved solutions. 

Why companies are shifting from manual AP processing to automated options

As the market for financial technology grows, Accounts Payable departments are continually transforming. The time-consuming and expensive nature of AP procedures has led to a shift away from manual processes to automated options. Even when the economy is healthy, your accounting team knows firsthand that managing AP processes by hand is problematic. Below is a breakdown of the typical manual AP invoicing and payment processing procedure: 

  • Review the received invoice 
  • Tracking down department heads that can verify and approve the invoice 
  • Manually entering in AP data into the accounting system 
  • Match numbers line by line to ensure the Purchase Order matches the invoice and delivery 
  • Getting final approval from the CFO 
  • Printing out and assembling paper checks 
  • Mailing payments 
  • Organizing and filing receipts for reference 

Clearly, this outdated and inefficient process is costly, error-prone, and lacks visibility. If your accounting department is still using a procedure like the one above then the time for a change is overdue.  

How AP automation can help your business solve your expansion challenges

As a business owner, one of your key responsibilities is to continually expand and drive profitability for your company. Leveraging robust AP Automation will increase your business’ agility allowing you to better navigate uncertain times. Eliminating redundant manual processes and streamlining your AP procedure will support business growth through tough economic times. According to Forbes, executives should approach the uncertain economic times with the mindset that business and tech are inter-connected. With an economic downturn on the horizon, you should consider investing in AP technology to create a stronger competitive position and drive expansion. Focusing on AP technology expenditures specifically will produce the following benefits:  

Productivity increases

Freeing your AP employees up from unnecessary manual tasks will give them more freedom with their time allowing them to focus on value-added tasks. Using a manual invoice processing procedure, on average takes over 11 days to process a single invoice. Implementing an efficient AP Automation solution like ExFlow cuts the invoice processing time down to just under four days. Reducing the amount of time required to process your AP Invoices gives your employees more time to work on important tasks ultimately supporting business growth.  

Gives your company the capability to handle a larger number of invoices

As your business grows it is natural for the number of AP invoices you handle to increase. High volumes of invoices can be very difficult to manage. Traditionally, this would require hiring additional employees.  However, through implementing advanced AP Automation software such as SK Global’s Banking and Treasury Suite paired with ExFlow (powered by SignUp Software), you can fully automate the entire AP process. Additionally, both solutions are designed to scale with your business and have the capabilities to handle an unlimited number of invoices supporting potential expansion.  

Cost Savings

In a report conducted on 1,485 organizations, the American Productivity and Quality Center, found that top performing organizations spent an average of $2.07 per invoice. The lowest 25% spent almost 5 times as much per invoice. The main variance between the two groups was automation. The more efficient companies generally used AP Automation while the less productive companies were using manual AP processes. Another area where your organization will save money is with labor costs. According to Glassdoor, the average salary for just one AP clerk is about $74,000 a year. As you grow you will either need to automate or hire additional employees. Implementing AP Automation software is typically the cheaper option. Lowering your overall expenses will free up funds for your business allowing you to re-invest it into expenditures that will grow your company.

Improve data visibility

Automation enables real-time tracking of your AP payments, giving you greater insights into your critical account payable process flows. Through robust software like SK Global’s, you can access approval history data, invoice codes and documents without having to contact your accounting department. Having greater visibility of data will not only improve your forecasting capabilities, but also allow you to use the information to make better informed decisions that grow your business. 

True End-to-End AP Automation Built-Into Microsoft Dynamics 365 F&SC

Through advanced technology embedded into your Microsoft Dynamics 365 Finance and Supply Chain ERP, SK Global’s Banking and Treasury Suite paired with SignUp Software’s ExFlow unifies and automates the entire AP Automation procedure. SignUp Software’s AP Invoicing solution streamlines the process before the payment takes place, while our Banking and Treasury Suite automates the payment processing procedure. To learn more about our solution join us for our weekly public AP Automation demos.  

 

Accounts Payable automation simplifies the accounts payable process by allowing companies to digitally pay and process supplier invoices. To process invoices, AP automation software, like SignUp Software’s ExFlow, employs scanning software to read invoice data within a matter of seconds.  

With this technology, manually entering AP data is now a thing of the past. AP automation software, supplemented by OCR (commonly known as Optimal Character Recognition which extracts data from scanned documents, images, and pdfs), automatically uploads invoice data, saving companies time and money. Intelligent AP automation solutions such as ExFlow are embedded directly into ERP systems like Microsoft Dynamics 365 Finance and Operations, which completely streamlines the invoice approvals. With these solutions, companies have much greater control over their AP process. This technology has countless benefits but why have companies decided to switch when it means changing their current process and training their team on completely new software?  

Companies at the forefront of technology trends have recognized the gradual shift to digitalization but the COVID-19 pandemic has prompted companies more than ever to use automation after seeing the countless benefits of digitalization of work processes. Now, companies who desire to have a competitive edge are seeing automation as an avenue for cutting-edge growth. According to a recent McKinsey study, a majority of companies have realized their business models will no longer be economically viable if they do not employ automation. As a result, more companies will shift to automatizing work processes as more digital solutions will arrive on the market. 

With the rise of working autonomy as a part of the new wave of digital transformation, there is a pressing need for configurable end-to-end automated systems that learn from your companies’ behaviors so that teams can be freed up of manual processing work. Through this technology, teams can now complete predictive maintenance of their banking and treasury management systems, which enables them to make great strides in optimizing their business processes. Financial automation has given companies the tools to outpace their competitors and has allowed for the building of a sustainable digital ecosystem, which can connect to larger hyperconnected networks. 

Not only will switching to automation keep companies in pace with their competitors, but it will also save them from high labor and operational costs of manual, paper-based invoice processing.  

Here are four reasons why companies are making the switch now more than ever.   

Significant Cost Savings 

After switching to AP automation, companies have seen sometimes dramatic reductions in costs related to invoice processing. Costs per invoice go down dramatically when using AP automation since it reduces the time processing the invoice. According to 2021’s State of ePayables Report from Ardent Partners, companies with little or no automation spend as much as $10.95 per invoice processed versus companies who are using invoice automation spend $2.25 per invoice or less.  

These costs may vary per industry but nonetheless, companies save significantly when switching. Your company will face upfront costs of buying an automation solution. However, over the long term, your company will save thousands of dollars. Many AP Automation solutions are now increasingly offering subscription-based payment models, which may be beneficial to companies looking for a more budget-friendly option. 

Increased Efficiency  

For many companies, manual AP processing has weighed down productivity since employees have to dedicate time to pore over countless invoices. Companies who have made the switch have streamlined their business processes since Accounts Payable automation entails seamless processing without human intervention. Its 24/7 operating system means that at any time of day, your team can process invoices. In the background, an AP automation solution gathers copious amounts of data to learn how your company’s behavior. This is so that it can better anticipate your company’s interactions with vendors. 

Error Minimization

Manual processing makes it incredibly difficult to identify errors easily. For some teams, this process can take hours, hindering teams from focusing on more value-added activities. This tedious process is automatically streamlined with automation. Intelligent invoice capturing utilizing OCR, such as ReadSoft, dramatically minimizes errors. This system is supplemented with line-item matching, which is used to ensure accuracy.  

Total Full Spend Transparency 

Comprehensive capturing of invoice data gives teams full access to money spent on vendors or suppliers, which helps companies with strategic sourcing. This intelligent overview of your spending allows your company to reduce overpayments or late payments since your team can track the invoice cycle at any moment.  

So How Do You Make the Switch?

To complete the switch to automation, you must choose solutions that are configurable and embedded in formidable ERP systems. With SKsoft and ExFlow’s optimized AP Automation modules, we have the right solutions for you! SignUp Software’s ExFlow solution can meet all AP automation needs through creating a truly end-to-end, embedded user experience in your Microsoft Dynamics 365 Finance and Supply Chain environment.  

Here are some notable features of ExFlow:  

  • Robust reporting to power your automation insights  
  • Best-in-class processing rates  
  • Complete transparency of Accounts Payable process 
  • Built with the latest technology for optimized processing 

Utilize a high-end automation solution like ours to save significant costs, reduce redundancies, and increase team productivity!  

Talk to our sales team today to see how you can deploy AP Automation today!