The drive to go digital is sometimes attributed to a want to remain competitive, and in a way, this is true.
But businesses usually choose to pursue invoice processing software because they’re tired of missing opportunities due to paper-based processes and people-based workflows.
Are you losing invoices, struggling with data entry errors or failing to capture supplier discounts?
A move to automating accounts payable and receivables processing through document management software should be in your future.
Factors Influencing Invoice Processing Improvements
In general, pursuing invoice processing software increases invoice processing cycle times and lowers processing costs.
Additional benefits are varied and detailed below:
Fewer Manual Errors: Have invoices been paid? Have they been paid in the wrong amount? Imagine automating your whole purchase-to-paid process to ensure the right product was ordered, the right price was quoted and the right invoice was paid at the right time.
Visibility And Control: Shorter invoice processing times means decreased financial risk and reduced attention to low-value tasks. With increased visibility into AP and AR, your business more closely monitors billing discrepancies and payment terms while avoiding late fees and taking advantage of supplier discounts.
Improved Cash Flow Management: Visibility and greater control over payables helps improve the accuracy of reports while improving the flow of cash into the business. Automated processes help streamline workflows that shorten the payment cycle through accurate invoicing and electronic payment reminders.
SOX Compliance Support: Timely and correct financial reporting is possible only when information is up-to-date. Automation ensures balance sheets and other reports are up-to-date with the latest information. This helps you meet deadlines, avoid fines and reduce liability.
Positioned For Growth: Automation is not about taking employees away. It’s about keeping systems and processes running efficiently and keeping pace with your rate of growth without having to add more employees. As such, 15% growth does not have to equal 15% more employees. Automation helps you grow your business while maintaining costs.
Improved Bottom Line: Eliminating late payment penalties, taking advantage of early payment and supplier discounts, and using software to help your business maintain headcount as you grow all significantly impact your bottom line by helping you grow revenue.
The Future Of Your Business’s Invoice Processing
The days of manual processing are dead. Automating AP and AR processes was new a decade ago. Companies today are using digital document storage to enhance the way they do business and fortify future growth.
Integrating electronic invoicing with other digital documents enables businesses to manage both paper and digital documents through the same processes and systems. It’s an advantage that improves your financial transactions as well as your relationships with suppliers and customers.
Looking for more insight into how the finance department can lead your company's digital transformation strategy? Download our free guide: 5 Trends That Will Shape Finance in 2018.