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With accounts payable workflow in Phoenix, you can process more invoices in less time. Businesses save money by eliminating paper and streamlining the invoice approval process. Implementing a document management solution leads a better managed, more efficient and increasingly profitable business.
Accounts Payable Workflow in Phoenix: How Document Management Solutions Benefit Accounts Payable Departments
Accounts Payable Workflow • With accounts payable workflow in Phoenix, you can process more invoices in less time. Businesses save money by eliminating paper and streamlining the invoice approval process. Implementing a document management solution leads a better managed, more efficient and increasingly profitable business. • Accounts payable workflow in Phoenix allows organizations to capitalize on solutions that eliminate unnecessary cost and add value. Basically, you can automate accounts payable to process more invoices in less time. Businesses save money by eliminating paper and streamlining the invoice approval process.
Accounts Payable Workflow • The superiority of electronic processes over paper processes is widely accepted in business circles. However, the migration to document management solutions has not been as pronounced as you would expect. Some specific findings by research firm Gartner, Inc. include the following: • U.S. companies spend as much as $150 to process each accounts payable invoice. • More than 95 percent of all business-to-business transactions are still settled with paper invoices and checks. • As much as 70 percent of invoice processing costs involve document handling, data entry and related manual tasks.
The High Cost of Manual Accounts Payable • Each time you purchase something on credit, you create an account payable for your business. This amount is owed to your supplier usually within 30 days. • Vendors frequently give incentives to customers for paying early. To get these discounts, companies must process and approve invoices in as little as 10 days. • However, few accounts payable departments can receive an invoice through the mail, approve it, cut a check and mail payment to the supplier within such a short time period. And the task becomes impossible if invoicing errors need to be resolved.
The High Cost of Manual Accounts Payable • The manual steps in processing paper invoices illustrate why the process can take upwards of 30 days: • Invoice received at company • Invoice manually distributed to accounts payable department • Invoice manually matched to original purchase order • Invoice manually reconciled with purchase order • Invoice manually distributed for approvals • Invoice manually forwarded back to accounts payable for payment processing • Invoice entered in Enterprise Resource Planning (ERP) application • Invoice selected for payment • Check stock manually loaded into printer • Check printed
The High Cost of Manual Accounts Payable • Check manually copied • Check manually distributed to vendor • Check copy manually matched to invoice and purchase order • Check, invoice and purchase order manually filed • The above accounts payable workflow in Phoenix could be further hindered in the following situations: • Businesses typically process two types of invoices. Some invoices originate from a purchase order and others don’t. Although purchase order invoices are pre-approved, accounts payable still needs to make sure the line items agree. Discrepancies usually don’t show up until the paper invoice arrives, gets keyed into the system and is matched line-by-line against the purchase order.
The High Cost of Manual Accounts Payable • Purchases made without purchase orders have their own issues. The accounts payable department does not know the invoice exists until it shows up. Because no prior approval took place, these invoices are shuffled through a time-consuming approval process. • When invoices have problems, resolution involves back and forth communications among suppliers and internal departments to collect necessary information. This added work generates more paper and substantially increases processing costs and time. In fact, many companies require dedicated staff just to resolve invoicing disputes.
Creating a Better Way to Do Business The benefits of document management systems and automated accounts payable processes are quite evident. Accounts payable workflow in Phoenix streamlines the invoice payment process to under six days: • Invoice received at company and scanned into electronic format • Invoice electronically and automatically distributed to accounts payable with associated purchase order • Invoice manually reconciled with purchase order • Invoice electronically and automatically distributed for approval • Invoice electronically forwarded back to accounts payable for payment • Invoice transferred to ERP application • Invoice selected for payment and checks printed using an electronic form • Check is electronically and automatically stored with invoice and purchase order
Creating a Better Way to Do Business Accounts payable workflow in Phoenix eliminates the high overhead and delays associated with manual paper processing. By automating and digitizing the invoicing process, a document management system for accounts payable improves how your business operates. Specific benefits include: • Replacing costly, error-prone paper processes with automated records management • Capitalizing on vendor discounts and avoiding late fees • Improving vendor relationships and increasing favorable terms • Resolving vendor disputes instantly with supporting documents easily retrieved • Providing flexibility to submit invoices in various formats • Eliminating invoice hold-ups and automating document routing • Optimizing approvals, payment cycles and reporting • Automating invoice and check match ups • Removing the need for additional staffing with volume increases • Facilitating audits with quicker access to needed documents and transaction histories
About the Author • Ron Thompson, Jr. is the owner and CEO of OSAM Document Solutions, Inc. OSAM provides dynamic, customized document management solutions. For more information about accounts payable workflow, visit http://www.osaminc.com/accounts-payable-workflow.html