Manual processing of documents has many disadvantages: It’s time consuming, human errors and overall lack of security & control. You don’t know where an invoice is in the approval process or if there is an issue holding payment up. Many companies still suffer through the traditional paper intensive accounts payable processing even though there is concrete evidence that automation using software solutions will save the company money.
Depending on what expert you listen to, a manually processed invoice that must go through a multi-step approval process could cost a company anywhere from $7.00 to $18.00 per invoice. An invoice process that has some level of indexing automation and electronic workflow could cost a company somewhere between $1.00 to $3.00 depending on volume and number of users involved in the workflow.
If you’re still running your accounts payable process manually now is the time to take those robotic tasks and convert them into reliable automated processes. Here are 8 excellent reasons to consider when evaluating you’re companies Digital Transformation change process.
Where is that Invoice? – Control and Visibility
You have all invoice information you need with a click of a button. You can easily find the invoice you need and ensure the correct people have access. Find the status of an invoice 24x7x365.
A complete audit trail is part of every document and that is fundamental for compliance with the Sarbanes-Oxley Act. It may also help you in other compliance areas such as HIPAA and HIPAA HITECH.
Improved bottom line- $$$
Early payment discounts can help improve your bottom line. Accurate invoice processing in less time and with fewer human resources.
Less data entry errors
Automated input helps eliminate errors. The OCR zones that have been captured during the automated extraction process can be validated against a 3rd party database for accuracy. If there is an issue that invoice can be routed to the correct person for manual validation and correction.
Reduced or re-purpose headcount
With Advanced OCR and Forms Processing it can eliminate manual keying by 70-100%. Manual input is only required for verification of invoices that have been flagged for having of the few discrepancies. Staff can be used for higher valued tasks that can help the company grow more quickly than focusing on low value tasks such as data entry.
Reduces double paying of invoices and may be able to help in fraud prevention
All incoming invoices are checked against data that exists in the ERP application. If the same invoice control number comes in twice it would be flagged and sent for review. No more unknown vendor invoices will slip through the system and get paid.
Document Management solutions can have seamless integration with most existing ERP applications – Microsoft Dynamics, Oracle, Sage, SAP, JD Edwards, Intacct, NetSuite and many others.
Retrieve documents that are stored in your document management solution directly from your ERP system. You can also do database look-ups, complete workflows and in some ERP solutions scan directly from them into the MaxxVault ECM solution.
No late-payment penalties
An automated AP workflow typically cuts the invoice cycle time by 50 to 85%.