In a humorous take on manual invoice processing, a post on the Business 2 Community blog highlights the “paper addiction” problem prevalent in some offices and prescribes a 12-step recovery plan.
Processing paper invoices may not seem like a big deal, but it’s important to recognize what these manual processes are really costing your organization in terms of efficiency and employee hours.
Switching to an electronic invoice processing system can make a significant difference by improving accounts payable management in five ways.
- Reducing inefficient paper invoice processing. A good electronic processing system should help you reduce wasteful paper handling, while keeping the peace with suppliers who insist on paper invoices. Such a system offers flexibility to vendors, enabling them to fax, email or electronically submit invoices; paper versions can also be scanned to reduce data entry.
- Cutting processing costs. With electronic tools, approvers can quickly review invoices using a web browser, email or a mobile device.
- Using greater accuracy and compliance to capture savings. Providing approvers with greater visibility can help them ensure accuracy and compliance, without taking up their entire day.
- Eliminating duplicates and overpayments. The transparency of an electronic platform means it’s easier for accounts payable management to spot and correct simple errors, especially when the software is configured to flag such potential problems for review.
- Exchanging late fees for early payment discounts. If your company could rearrange its invoice processing to eliminate late fees, what would you save? What if you could also capture discounts from some vendors? An electronic platform brings these details within reach for effective decision-making.
The Business 2 Community post provides a helpful reminder on how organizations can improve accounts payable management by breaking free of paper and embracing today’s electronic processing methods.
We appreciate your feedback. What do you see as the top advantages of using electronic invoice processing? Share your thoughts in the comments section!
Source: Business 2 Community, October 2013