Accounts Payable Automation 7 Ways Automation Can Reduce Pain Points in Accounts Payable. Ebook

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1 Accounts Payable Automation 7 Ways Automation Can Reduce Pain Points in Accounts Payable Ebook

2 Table of Contents Introduction #1 Improve Monitoring of Invoices #2 Improve Visibility & Control #3 Faster Invoice Processing Times #4 Improve Supplier Relationships #5 Save Money & Space #6 Improve Accuracy #7 Reduce Fraud The Benefits of Accounts Payable Automation About Kefron Digital

3 Introduction Managing the Accounts Payable process can be difficult. The lack of visibility in the process can cause confusion and lead to expensive ramifications. Implementing an Accounts Payable Automation solution like Kefron Digital s can help you gain control of the process and help you get through your month end much more efficiently. Over the following pages, we will be discussing some of the pain points faced in a traditional Accounts Payable process. 03

4 #1 Improved Monitoring of Invoices When implementing an Accounts Payable Automation solution, we stress the importance of employing best practices with the invoices getting scanned upon arrival and stored on the cloud immediately. By storing the invoice immediately, you have access to all the information required to determine how many invoices are in the system and have not been paid. With this information, you will be able to provide up-to-date and accurate accrual information at a moment s notice. With cloud based Accounts Payable Automation systems, invoice automation is always available, anywhere with an internet connection. Better monitoring of Accounts Payable processes is possible! 04

5 #2 Improve Visibility & Control An Automated Accounts Payable solution provides huge benefits through improved visibility and control. It frees up space and time, facilitates accessibility and knowledge sharing, promoting staff flexibility and enabling a better business continuity. Within the solution, information pertaining to the invoice, such as Cost Centre, Project Accountant, etc. can be used to help determine the appropriate routing in the approval process. Using this key information, invoices can be sent directly to an individual s inbox for review where they will receive an notification indicating there is an invoice waiting for them to approve. Additionally, information defining the delegation of authority within your organisation can be available to ensure the appropriate individuals with the appropriate authority limits are indeed authorising the payment of the invoice. 05 Improved monitoring of invoices means better VISIBILITY & CONTROL over the Accounts Payable Process

6 #3 Faster Invoice Processing Times In traditional Accounts Payable processes, invoices can be sitting on people s desks for an inordinate amount of time, extending the overall process timespan. When implementing an Accounts Payable Automation solution the invoice will be picked up and routed throughout the organisation for review, coding, approvals and authorisation. With increased access and visibility to the invoice and the processing system, the invoice is processed at a much faster rate. Invoices can be approved and paid more efficiently. Each step in the workflow can be configured to establish limits on how long an invoice should wait for the approval to be given. If the invoice waits too long for the approval and the limit is reached, the invoice can be escalated to other individuals in the process for approval. The invoice can continue to escalate to other individuals until other approvals are provided. This helps to get the invoice paid, but will also help to identify those individuals that continue to cause delays in the process. 06

7 #4 Improve Supplier Relationships There are huge benefits by paying invoices in a timely manner, including vendor discounts and improved supplier relationships. Vendors will give discounts for paying invoices in a timely manner. In traditional Accounts Payable processes, invoice processing times often overrun the discount period, meaning that organisations lose out on these discounts. With Automated Accounts Payable solutions information regarding the flow of invoices is logged detailing the length of time it takes to get invoices routed through the system and how much it takes for the invoice to get from one step to the other. With this information, bottlenecks in the approval process can be analysed and removed. By paying earlier, supplier relationships will be improved. This is incredibly important to daily operations as your product quality depends on your suppliers. Competitiveness and innovation can also be affected because of poor supplier relationships. If Accounts Payable Automation can have such a huge effect on an organisation, it is incredibly important to invest in it.

8 #5 Save Money & Space Accounts Payable departments are often drowning in paper, resulting in time wasting on filing, retrieving, copying, mailing or looking for documents that have been misplaced or lost. The time taken to find documents coupled with manual data input and postage costs can add up to more than half of the cost of invoice processing. With an automated system, staff are able to focus on core functions, meaning that the organisation becomes more efficient. Traditional Accounts Payable processing also uses a lot of paper. Each four-drawer filing cabinet holds an average of 10,000 documents and can take up nine square feet of floor space. This can be avoided by automating through digital invoice images. They take less physical space than paper invoices and can easily be copied and stored in multiple locations. Organisations can select invoices for off-site storage and move them without any intervention from accounting staff. Automation reduces the need for paper invoices Automating Accounts Payable means more savings on MONEY & SPACE 08

9 #6 Improve Accessibility 09 Using a cloud-based Accounts Payable Automation solution means that users are able to access the invoice at any place in the invoicing process. Unlimited access to the system means that the Accounts Payable department are able to query where the invoice is currently located in the process. They can also review the overall history of events for this invoice and help provide the vendor with up-to-date information on the status and when they can expect payment. Most managers also like to keep a check on spending, and big ticket invoices will always need approving whether the manager is at home, in the office or in transit. Accounts Payable Automation solutions can now give managers on the move the opportunity to authorise, reject or query supplier invoices from any web-enabled smartphone or tablet. Improved accessibility will reduce processing times

10 #7 Reduce Fraud Manual processing of invoices can be disadvantageous to a organisation. With the increased human touch points, there are many opportunities for human error. When using an Automated Accounts Payable Solution, visibility, accuracy and control are increased. By the elimination of human touch points and adherence to strict business rules, fraud in the Accounts Payable department can be reduced. There are so many opportunities open in the manual process for dishonest employees acting alone or with dishonest outsiders to defraud a company. Specifically, in a conventional manual Accounts Payable function, enforcement of business rules is based on after audits, whereas automation offers the opportunity to enforce these rules during the process. Eliminating HUMAN TOUCH POINTS reduces the risk of Accounts Payable Fraud

11 Automation in Accounts Payable can seem like a difficult decision to make, but the benefits are huge. From saving money, time & space to reduced fraud, automation can improve business processes. It can also improve accessibility to invoices and ensure that supplier relationships are maintained and vendor discounts are realised. Want to find out more? Sign up for a free demo here 11

12 About Kefron Digital Kefron Digital is part of the Kefron Group. Designed to save time, money and energy our solutions for electronic records management provides world class document management technology to streamline your business. Kefron Digital s Accounts Payable Automation solution is a tried and tested cloud-based technology designed to significantly streamline your Accounts Payable processing. Our solution can improve productivity, provide greater accuracy and reduce the overall costs associated with the receipt, approval and posting of Accounts Payable invoices. 12

13 We Manage Information & Documentation Simple. About Kefron Kefron are The Document and Information Management People. Kefron (UK) Limited Unit 4A, Woodley Park Estate, Reading Road, Woodley, Berkshire, RG5 3AW United Kingdom PHONE: +44 (0) We simplify the document and information management world for our customers, taking the pain out of your information processing issues. We have three brands including, Kefron Filestores, Kefron Digital and Kefron Consulting which together offer a complete document management lifecycle service. Our business exists to improve how you manage your information, with our expertise supporting both physical document storage and digitisation of your information. We create workflows and solutions through our expertise which enhance efficiency and ultimately, productivity. We can make a real difference to your business. This is what drives us. Kefron Limited 53 Park West Road, Dublin 12 Ireland PHONE: +353 (0) FAX: +353 (0) [email protected]