Have you ever thought that paper-intensive processes might be reducing your company’s profitability?
Invoice processing is an area where overworked staff, manual processes and paper-caused chaos create a ripple effect throughout your organization that keeps you from being efficient and doing what you do best.
A document management system that integrates with invoice processing software is one way to bring a digital advantage to your accounting operations.
Decreasing Time-Sensitive Tasks With Invoice Processing Software
- Searching through filing cabinets. Even though invoices and related documents may be filed correctly, it still takes time to look for the documents, remove them and return them after use. Digital access through invoice processing software gives your team complex search features to find and locate all relevant documents with breakneck speed.
- Matching purchase order to invoice. Verifying line items against what was received is a manual, time-consuming processes. In a digital file space, these items are automatically linked and matched in the system. So, recalling one item instantly recalls the other, which reduces the amount time dedicated to digging for documents.
- Matching the delivery ticket to the invoice. Sometimes invoices come in multiple times, causing confusion in accounting departments as to which invoice they should pay. In a digital filing system, the delivery ticket may also be automatically attached to the PO and invoice for proof of receipt. Workflows may be structured around these digital documents to ensure receiving personnel verifies that the correct items were received and undamaged.
- Getting approval to pay invoices from departmental management. When a PO is submitted to a vendor, the vendor sends accounting an invoice, but accounting has no idea if it’s able to pay that invoice or not. Accounting is under incredible pressure to pay invoices on time while also avoiding double- and over-paying invoices. Putting these items through an electronic workflow shifts the responsibility to department managers to approve invoices and speed up invoice payment.
- Ensuring fast payment of booking and general ledger entries. Sometimes buildings and departments share invoices. For example, the electric or Internet bill may be shared by everyone in a building, and some of these items require approval from various departmental managers before being paid. Some items are automatically paid by percentages, but other items need manual attention for budget concerns. This process payment may be automated.
Unlocking Hard And Soft Invoice Processing Savings
Breaking Down Hard Cost Savings:
- Storage Space – New companies have lots of floor space dedicated to storage for tax, compliance and legal reasons, and reclaiming that space reveals a significant ROI in facility costs.
- Paper – Processes that are paper-based generate a lot of printed copies using paper, ink and time to file and retrieve.
- Postage – Every invoice and statement sent via paper requires postage. With digital documents, invoices to customers are emailed in an automated workflow.
Breaking Down Soft Cost Savings:
- Early-Payment Discounts – A digital invoice ensures you take advantage of early payment discounts and avoid late fees.
- Improved Vendor Relationships – Digital workflow invoice approvals allow for prompt payment, which could lead to favorable price quotes in the future.
- Efficiency – Digital files help employees do as much as they can with the time that they have.
Speed Up Invoice And Accounts Payable Processes With Digital Document Management
A digital document management system that’s integrated with invoice and accounts payable processes has a way of revolutionizing not just accounting processes, but your entire business.
The cost- and time-saving advantages behind digital invoice processing have been detailed above, but there’s more to learn about how to create a digital workflow in your business.
