Automate your AP processes
By automating your AP process with enterprise content management, you avoid the month-end crunch and improve the bottom line.
So, what slows down the month-end close and yearend close? Most organizations still rely on tedious, time-consuming and manual activities for the month-end close leading to oversights and errors.
The Paper Shuffle
- Manual Sorting of Invoices
- Manual Matching of Invoices/PO’s/Shipping Docs
- Copying Invoices/Email/Fax
- Manual Routing for Approvals
- Manual Data Entry
- Inability to Capture Discounts
- Duplicate Payments
- Lack of Visibility
- Lost or Missing Invoices and Files
- Manual Data Entry
Solution: Eliminate Paper at its Source
By scanning documents, electronically capturing Email, fax, EDI, and forms and using Intelligent Capture to extract data such as vendor name, vendor number, po number, invoice number, dollar amount, the need to sort copy and distribute paper documents is eliminated. The data is subsequently uploaded into an ECM and ERP solution allowing for visibility and access at all time during the AP process.
Reliance on an Individual’s Knowledge
In many organization’s tasks are based on historical processes known only to those with the responsibility to complete them, which if they are on vacations, sick or leave the organization, the team must scramble to recreate the hidden secrets of the knowledge worker.
Employee checklists are frequently individualized and do not offer the ability to share invoice status with the team.
Workflow establishes clear rules for processing documents to optimize your business processes. You assign employees, tasks lists, rules, timelines and automated notifications and escalations. Processing invoices that require approvals whether the approver is at another location or out of the office the process continues transparently anywhere anytime.
Increase Visibility into Processes and Real-Time Information
ECM can be integrated with an existing ERP system or other business application, allowing AP staff to view relevant documents without wasting time physically searching for critical information on paper. They can retrieve invoices, receipts, packing slips, check images, and more directly from their ERP screen. Through integration, you gain visibility by electronically capturing all documentation in any format and storing it in one system.
Using Workflow staff can access, review and approve invoices or input additional data directly from the most convenient place whether it’s their accounting system, ERP, email or mobile device. Plus, real-time dashboards provide managers with visibility into the status of invoice processing, enabling them to identify bottlenecks and adjust workload distribution
ECM can also help guard against compliance risk by providing a clear and auditable trail for every movement and touch of a document in the payables process.
Be Thorough When You Evaluate Your Financial Processes
- Significant manual data entry effort required
- Time to manage multiple formats of invoice receipts
- Manually routing invoices for approval
- Manual effort required to match PO lines
- Dispute Management is time-consuming
- Time required for Exception Processing
- Inability to collaborate efficiently during the process
- Too much time used to service vendor requests
- Exposure to duplicate payments being made to Vendors
- Incurring late payment penalties
- Paper Costs are high (Handling, Storage, Shipping,
- Need to reduce costs associated with compliance fees
- Lost or misfiled invoices causing worker inefficiency
- No document retention capability
- Accrual reporting is difficult and often not accurate
- Month end close is always a crunch
- Unable to consistently capture early payment discounts
- Unable to facilitate dynamic payment terms
- Material weaknesses in internal controls
- Little or no documented procedures
- Inability to easily support audit requirements
- Accessibility to documentation supporting payments
- Rudimentary audit trail for payment approvals
- No systematic way of segregating duties
- No delegation of authority controls for approvals
- Lack of visibility into payment cycles
- Unable to view entire process metrics from end to end
- No metrics on AP Specialist performance
- No metrics on Approver response times
- Need count of Open Invoices at any given time
- No visibility into the number of exceptions being processed
To summarize, a thorough Discovery will determine the cost savings and efficiencies you will gain using an ECM/Business Process Management solution and tools.