Why you should automate accounts payable
If you receive a few hundred invoices a month or more there is a case for invoice scanning and invoice automation. Top six reasons for invoice automation as suggested by our customers are:
Invoice automation pays for itself
Many industry analysts from Hackett Group, AIIM, Institute of Financial Operations and others in the sector agree that an invoice automation project offers quick return on investment sometimes as early as 18 months. It is a technology that pays for itself with immediate reduction in “per invoice processing cost”. Building the case for invoice automation is easy as it fits in the right cost vs value quadrant.
Delivers hard cash savings
Since the cash outflow happens via accounts payable, automation helps predict available and pending cash liabilities accurately. Moreover, if payments are quicker you are able to benefit from early payment discounts and benefit from preferential supplier rates.
Get ready for answering the auditors queries
Can you provide complete trail of invoice number 333?
It’s difficult to monitor and control manual invoice processes. Automating invoice processing leaves little room for error and records the state of the invoice at each stage of the process to create an audit trail. Controls can be embedded into the automated invoice workflow reducing the effort and cost of compliance. For example, if an invoice over £10,000 is created a control can be set to create a purchase order first, make approval of a senior manager manadatory and match it against a delivery note. All this information can be pulled together quickly for an auditor to check making your life easier.
Know where your invoices are
In a manual, decentralised invoice process sometimes an invoice can sit on a purchaser’s desk in a department for weeks without AP knowing of it. This could lead to late payments and AP not knowing their actual liabilities. Whereas with invoice automation the receipt of all invoices is centralised and AP team knows about each invoice received, paid, sent for approval or questioned as an exception.
Your happiness is relative to your supplier
With invoice automation suppliers are paid on time which helps improve relations with them. It reduces your headache and effort wasted in answering supplier queries mostly related to status of payments. Happy suppliers will extend offers and discounts as well.
Everyone doesn’t need to be under the same roof
Getting invoices approved and paid gets complicated if the accounts team and approvers are not in the same location. Posting invoices or scanning invoices for email attachments is costly and error prone. Invoice automation enables access to invoices from anywhere, anytime. You just need to have the correct access rights. This saves cost of distribution and processing of invoices.
DCS offers end-to-end invoice automation solutions which include centralising receipt, scanning, capture, distribution, approval, exception handling and payments of invoices. The solution is customisable and modular so only pay for what your business needs.