Author: Rachel Tilley
With growing transaction volumes, Brexit regulations and the rapid change to remote working brought about by the Covid Pandemic, more and more businesses are looking for solutions to automate invoice processing.
Making a change is never easy but 2021 was the year that just over 50% of those working in Accounts Payable said they planned to drastically reduce paper invoices received from suppliers, according to a study by the Institute of Finance and Management (IOFM).
In this article we talk through nine of the most common reasons organisations need invoice processing software. From duplicate invoices to compliance issues, learn the benefits an automated solution can bring.
Manual data entry is time consuming, inefficient and mistakes can easily happen. Keying the wrong information into your finance system can have disastrous consequences.
An error can mean hours of time wasted tracing the mistake and correcting it, and that’s if it’s caught in good time! Not only could staff time be put to better use, but this wasted time will be costing your organisation money.
If you’re still processing paper, how many touch points does one invoice go through? Is it passed from different people to different departments. Each touchpoint creates more chances for errors to occur; lost documents, bottlenecks and late payments.
How DocTech can help:
Accurate data that enters a system from the start is vital and can be easily achieved with invoice automation. Scanned or emailed documents processed with DocuWare, ensures the exact information from the invoice is transferred into your integrated Finance or ERP system with little to no manual intervention.
Standalone systems that don’t talk to one another don’t work as efficiently as they could. Users often have to switch between systems to complete tasks and carry out multiple rounds of data entry. Applications that work together however mean staff can use 'one' system for all their work.
How DocTech can help:
We have the experience of providing different levels of integration requirements into a variety of existing software systems and DocTech solutions can work as though they ‘sat within them’. An IT infrastructure that works as one will bring improvements in efficiency, productivity and a reduction in errors.
Automated invoice processing is not about taking staff away, it’s about using their skills to keep systems and processes running more efficiently. Employees who cannot access the information they need because it’s sat in someone else’s inbox, or where they cannot complete their monthly report because the right data isn't available are stressed and not fulfilling their potential.
Centralised, digital documents can be accessed by any user with authorised access from any location. Invoices can be reviewed and approved from a mobile device whether in or out of the office, speeding up processing times and reducing bottlenecks.
How DocTech can help:
Our electronic invoice processing software is easy to implement and use so staff have no problem adapting to it. This increases the ROI and the days of employees sitting through long software training courses are eradicated.
A purchase order (PO) is a document sent from a buyer to a supplier to request a product or service. It includes a PO number to be able to track the purchase from start to finish and provide a record of that purchase.
The PO may require approval from various people or departments depending on value, what’s being ordered or the position of an employee within the organisation.
If this chain of approvers is long it’s likely the process is slow and possibly even complicated. A purchase order being passed between numerous people and / or departments means the chances of error increases. Information can be lost, the status of a purchase is inaccurate and there is no visibility of where the process is up to.
How DocTech can help:
The best automated invoice processing software is one that combats all of the above, using one system to streamline the whole accounts payable process. DocuWare not only integrates with existing finance software such as Sage or SAP, but can provide a customised and digital workflow to manage the approval process.
Invoices can be routed in a multi-step approval process, split code booking is accommodated and those invoices that need to be rejected and dealt with separately can have their own document workflow and path to follow.
For Finance Directors, being able to track payments, cash flow and money owed at any given time is vital. Mounting pressure on finance teams to increase the speed of accounts processing and to provide accurate reports means chaotic systems and unorganised processes won’t work. Paper gets lost and emailed invoices aren’t accessible to everyone.
Being able to closely check billing discrepancies and payment terms means late fees are avoided and businesses can take advantage of supplier discounts. Shorter invoice processing times means decreased financial risk.
How DocTech can help:
Electronic invoice processing increases the visibility into Accounts Payable and Accounts Receivable processes. Using DocuWare for invoice processing, authorised users can access the full payment cycle and easily see the status of any invoice.
Automated digital workflows replace and enhance existing manual processes. With full access to your workflow it’s easy to monitor progress, manage any bottlenecks and see what tasks lie with which team member.
With growing regulations across all industries including GDPR, Covid Risk Assessments, HIPAA, and Health and Safety to name a few, having the correct documentation and processes in place can mean the difference between on-going production and being closed down.
Data privacy and retention policies need to be managed carefully to avoid non-compliance issues and costly fines. These areas of business that can often be overlooked or moved to the bottom of a ‘to do’ list.
How DocTech can help:
Automated invoice processing software like DocuWare ensures high data security. Information is accurate from the start and is stored with high levels of administration and technical protocols.
This ensures documents can’t be accessed, altered or deleted by unauthorised users. Even approved users are given access rights in-line with their job function or position in the organisation.
With invoices legally needing to be kept for six years, finance teams need an efficient way of managing this. DocuWare securely stores documents for a set period of time, preventing loss and without the need for costly storage facilities.
Once the required storage time is up, DocuWare can be configured to automatically delete the documents, or send a task to a team member for one final check. With this type of invoice automation, clear processes are defined for both retaining and deleting documents.
While implementing a software solution has associated costs, we hear from many of our clients that the return on investment happens within months. Organisations need to think about how much paper, printing and storage facilities cost which in turn can be virtually eliminated with invoice processing software.
How much time are employees wasting on searching for documents across filing cabinets, server folders or inboxes. How long does it take to store information away securely and to input data manually?
Speak with your team to work out the time then convert this into an hourly wage to understand the monthly cost. It’s not only worth thinking about the monetary value, but also morale and the unnecessary stress caused by these manual tasks.
How DocTech can help:
Our document management system reduces paper by storing documents digitally. Information received by email no longer needs to be printed and stored or opened and manually saved in a network folder.
It can be automatically stored in a digital filing cabinet in seconds, both compliantly and securely. Search time is dramatically reduced as all information is captured and indexed in a set way. Information can’t be lost or misplaced and is easily accessed by those that need it from any location.
Having an easily adaptable and customisable accounts payable solution means organisations have the right software in place to meet any bespoke requirements. Finance teams can design their own document workflow to run as they need it to. Invoices can be routed to the appropriate person, tasks and alerts set up and approvals managed.
How DocTech can help:
No two organisations operate in the exact same way. Implementing invoice processing software from a provider with a proven track record means AP processing can work in the way you want it to.
At DocTech we will listen to how your invoice process currently works, suggest improvements where needed and provide a solution that gives you the outcomes you’re looking for. Whether that’s to stop duplicate payments, provide better traceability for audits, or to reduce time pressures on staff.
Electronic invoice processing provides instant access to information which improves relationships with suppliers and customers when any queries arise.
Paying suppliers in good time can result in better prices, quicker service and early payment discounts.
How DocTech can help:
With a DocuWare solution, data is securely stored and available in a matter of clicks. An automated system provides enhanced supplier relationship management with a simple on-boarding process through to regular and timely invoice payment.
Alerts can be set up to any time sensitive situations such as contract renewals or payment deadlines.
DocTech are industry leaders in providing document management solutions that meet the needs of organisations looking to automate their invoice processing.
With more than 35 years of know-how and an experienced in-house technical team, we are proud of our work with a growing number of organisations across multiple industries.
We work closely with our clients to understand their accounts payable and receivable processes, what problems they’re experiencing and what are the drivers for change.
Mapping out the process together, we can see what improvements can be made and where our solutions will sit to bring about the biggest benefits.
Our aim every time is to provide a cost effective, automated invoice process in place for the long term.
Organisations with finance departments that continue to struggle with disjoined accounting systems, high overhead costs and inaccurate record keeping are likely to lose out to the competition.
Invoices are how your business gets paid and enable sales to be tracked, help manage cash flow and provide valuable data to create accurate business forecasts. Invoices are valuable documents and when lost or processed wrongly the consequences can be costly.
Staff struggling with the volume of work, time consuming supplier enquiries are security risks all affect the bottom line, reputation, and could result in legal action.
Take charge of the challenges you’re facing with accounts payable and make a plan for change. Speak with us, we can implement a solution that’s fit for purpose and easy to use.
Our invoice processing software is available in the cloud and on-premise and integrates into your existing IT environment. Start making a positive impact in your team and book a discovery call with us.
