Preventing Payment Fraud with AP Automation for Auto Dealerships
It may seem hard to believe, but incidents of business payment fraud have been on the rise in recent years, and the statistics are alarming: A2024...
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3 min read
January 14 2025
by
Chris Cosgrove
Challenges really aren’t anything new, but the way your auto dealership handles them can be. If you’re attending NADA Show 2025 in New Orleans, January 23-26, then you’ll get the opportunity to learn how to master digital transformation in your back office.
At NADA 2025, Booth #2107, CloudX will showcase solutions that help auto dealerships transform their accounts payable processes with AP automation--making back-office operations more efficient and secure than ever before. In this article, we’ll explore the problems affecting dealership back offices, how AP automation can help, and what you can expect to see from CloudX at NADA 2025.
Your dealership’s back office is the backbone of your operations, but when your accounts payable system is inefficient, it can affect every other part of your business. Whether you're dealing with manual processes, late payments, or security threats, these common AP challenges can significantly impact profitability. Here’s how they manifest:
Many auto dealerships still rely on manual invoice processing, which is not only time-consuming but also error-prone. Accounts payable departments often have to deal with paper invoices, manual data entry, and unnecessary back-and-forth with vendors to confirm payments. In turn, the risk of errors, delays, and inefficiencies that slow down an auto dealership increase rapidly.
Late payments are another recurring challenge in auto dealerships, as they are in most businesses. When payments are delayed, it can strain vendor relationships, cause late fees, and even damage your dealership’s reputation. These issues are often exacerbated by manual invoicing and payment processing, where human errors and miscommunication lead to avoidable delays.
Handling vendor payments and sensitive financial information manually exposes your dealership to a variety of cybersecurity threats, including phishing attacks, payment fraud, and data theft—which can be mitigated through innovation. Without proper safeguards in place, the consequences of a security breach can be costly both in terms of reputation and finances, especially in today's automotive market.
So, how can AP automation help your dealership overcome the challenges of traditional accounts payable and re-align your operations?
The answers lie in streamlining and digitizing the entire accounts payable process using a robust AP automation solution. Here are the key benefits of AP automation:
AP automation simplifies your entire accounts payable process, from invoice receipt to payment, enabling your dealership to thrive in the competitive landscape. By automating data entry, approval workflows, and payment processing, your dealership can eliminate manual tasks and reduce the chances of human error. With end-to-end automation, you can then increase the speed and efficiency of every process step.
With AP automation, your auto dealership will be able to process payments faster, helping your dealership to avoid late payment penalties, improve cash flow, and foster better vendor relationships. In fact, by integrating your AP system with your dealership management system (DMS) or accounting system, you can seamlessly synchronize data and enable automatic payments as soon as invoices are approved.
A key advantage of AP automation is that it provides real-time visibility into your financial data, anytime and from any location, allowing you to easily track and monitor the status of invoices, payments, and vendor statements. The resulting instant access helps you make informed financial decisions and stay on top of cash flow.
AP automation software also comes with built-in security features and artificial intelligence (AI) integrations designed to protect your dealership from fraud and cyberattacks. By using secure digital payment methods, encrypted data storage, and automated approval workflows, you can significantly reduce the risks associated with manual payment processing.
At this year's NADA Show, CloudX will showcase its cutting-edge AP automation solutions at Booth #2107. Co-Founder and Chief Revenue Officer Chris Cosgrove, along with Business Development Manager Chris Stearns, will be available to discuss the latest trends in digital transformation and AP automation. They will provide live demonstrations of end-to-end AP automation, introduce their newest DMS API-level integrations for AP automation, and announce APSmart NextGEN, an upgrade to its current APSmart® AP automation software.
CloudX is also hosting the educational session “Revolutionizing the Dealership Back Office” on Friday, January 24, from 12:15-12:35 p.m. In this 20-minute workshop, Chris Cosgrove will outline the critical steps dealerships can take to implement digital transformation in their accounting departments. Cosgrove will explain how adopting AP automation can lead to greater efficiency, cost savings, and business growth, paving the way for innovation in the industry.
CloudX is a leader in accounts payable automation, offering SaaS solutions that help automotive dealerships reduce manual processes, save time, and increase visibility into their financial operations. Since 2017, CloudX has assisted dealerships across the U.S. in integrating seamlessly with their DMS systems to streamline accounting workflows and reduce operational costs.
CloudX’s solutions include:
If you’re attending NADA 2025, make sure to visit CloudX at Booth #2107 to see firsthand how automation can transform your accounts payable operations. Whether you’re looking to reduce manual processes, improve payment speed, or enhance security, CloudX has the tools and expertise to help you succeed.
Not attending the show? You can still take steps toward digital transformation by visiting CloudX’s website and booking a demo.
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