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The accounts payable department is often one of the paper rich “in any organization and is often the largest single cost in the accounting function. This is because many accounts payable departments to be very manual rather than automatic.
In recent webinar co-hosted by Ardent Partners, What really makes payable Best in Class? they surveyed nearly 200 people who work in accounts payable, finance or purchasing department to ask what challenges they face and what changes they going to do in the future to improve efficiency in departments. It was found that 43% of survey respondents said that their department is still very manual and paper-driven and 36% said long invoice and payment processing time is still one of the major challenges . These figures show that departments such as accounts payable are still spend most of their time manually processing invoices. When you consider what technology is available today, such as account management software solutions, it’s crazy to think that the majority of accounts are still treated as paper.
One of the many problems payable face is typical purchase to pay process involves a number of key documents, such as purchase orders, invoices, receipts and so on, many of which need to be authorized or approved by the people across the organization. This is a long process that is very time consuming, very expensive to operate and prone to error. Needs to improve process efficiency is one of the top drivers of business in 2012 under the Ardent Partners, 52% of survey respondents say this is something they want to improve in the next year (s).
So how can the accounts payable department improve process efficiency and cut costs? Investing in invoice processing and invoice management solution can help automate and simplify the accounts payable department. Benefits of using invoice processing solution
Reduced data entry costs account management solution will significantly reduce manual data entry and associated his work costs
Cut costs approved and licensed account management solution will automate the method to allow bills to pay and you can save up to 50% of the cost involved
Manual error is removed: .. account management solution will reduce many manual tasks that will significantly reduce manual errors when processing documents
Lower storage costs : filing space can be reduced and the cost of digital storage has been reducing year on year as technology evolves
increased security :. Access can be provided at different levels so that only people with the right level of security can access
Add supplier relations :. when suppliers contact AP department with inquiries, account and all information provided can be instantly downloaded and query answered, saving time and removing costs call them back
Reduced accounts payable (AP) headcount : .. automatic invoice processing leads to more efficient AP department and can reduce staff volume significantly
With benefits like these, AP staff could focus more on value-added work, such as to negotiate discounts with suppliers, rather than manually enter data or trying to find a misplaced account.
The accounts payable department is important to any business and invest in the management of account or invoice processing system will not only improve the AP department and the company as a whole. Improvements will include saving money and time, as well as being able to build and maintain effective communication with suppliers. So if you have not thought about automating your accounts Payable department yet, then consider what the above benefits could do for you and your business now and in the future.
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