How to automate your AR Process?

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This article is the second in a series that talks about the benefits of automating your accounts processes.

In my last article I discussed the Accounts Payable process. You can read more about that here! from invoice management to the merits of automating the process.

I like to start with the END in mind which I guess is where Accounts Receivable fits into the accounting function because it is the process whereby a company allocates received payments to the relevant customer accounts hopefully with minimal manual interaction in effect it is the management of the Sales Ledger. It is also one of the more cumbersome accounting tasks that is often very manual intensive prone to errors resulting in the slow down of customer invoices being paid on time.

It is a key component to the effective running of any organisation or company ensuring that bills are paid on time. Traditional methods can be labour intensive, slow and prone to error.

How does automating the AR process work?

Capture

By caputuring information using an intelligent capture tool which can extract data automatically learning and storing information as it goes.

Managing the information

By managing the information in your system enabling faster retrieval for processing and eliminating the need for paper storage at the same time ensuring compliance.

Cash Allocation

Incoming payments can be allocated swiftly right down to the invoice level; this information is remembered by the system so that subsequent payments can be matched.

So what are the benefits of automating your accounts receivable process?

  1. Real time view of your sales ledger
  2. Clean sales ledger with no unallocated balances
  3. Accurate management information and easier cash flow forecasting
  4. Efficient credit management with accurate debtor days information available at all times
  5. Increased credit control efficiency – no wasted time chasing invoices already paid
  6. Reconciliation is done on a day to day basis making the month end process efficient
  7. All banking and remittance documents are stored electronically making the audit process less arduous and reducing the amount of storage required
Finally automating the accounts receivable function will ultimately improve cash flow and reduced DSO, reduce printing, postage and paper storage handling costs enabling the company to adopt a Paperless electronic billing strategy! 

Are you struggling to manage your accounts processes? Are you deluged with paper? Do you wish you could get your invoices out faster? Do you wish there was more month at month end?

Get in touch with us and we will be more than happy to have an informal chat!

Follow us on twitter, facebook and Linkedin or hit the RSS button to subscribe to read the next instalment entitled:

How to adopt a paperless billing strategy for your company?

Filed Under: Accounts Automation, Accounts Payable, Accounts Receivable, Invoice Processing, Managed Print Services, Managing Print Costs, Outsourcing Tagged With: , ,

5 Great Ways to Reduce Your Paper-Flow

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How to cut the cost of your invoice processing?

Many organisations are challenged by wanting to break free from slow and costly paper based systems. Accounts Payable departments are constantly being challenged to cut operating costs whilst ensuring invoices are paid promptly. Manual AP processes are costing companies on average £2-£4 per invoice; that’s a staggering on-going cost for a company who may be thinking they are managing the invoice paper flow!

A typical manual process includes:-

  • Invoices come into the company from different suppliers or cost centres in different layouts and delivery formats – post, fax, email, EDI
  • They are forwarded to the relevant person responsible for that invoice
  • There is a longer lead time due to manual routing, processing and sign off procedures
  • Inefficiencies due to time spent matching the invoice to the Purchase order, verifying, approving and signing off for payment
  • Inability to maximise discount benefits associated with early payments
  • If it exceeds the company’s limited amount it may well have to go to senior management for verification
  • If approved the invoice is then input into the accounting system ready for payment
  • Archive costs for compliance and accounts audits
Typically, there may well be invoice queries, is the vendor valid, is the invoice correct and does it match the PO or is it a duplicate invoice?

Why automate?

  1. By automating the process you gain a complete overview of the AP function using an end-to-end invoice management system of all processes and, any financial implications.
  2. Capturing the invoice information by using an intelligent capture tool to extract invoice data updating your ERP accounts system with no manual entry
  3. Automatically consolidate and reconcile purchase orders, invoices, payments which helps manage allocations, cashflow and payments
  4. Invoice processing automatically matches and verifies scanned invoices with PO’s
  5. The process is centralised so up to date live information is made available to the accounts team at every stage of the AP process

How does adopting an AP strategy reduce my paper flow?

Its the start toward adopting an ebilling strategy for your organisation by automating the processing of invoices and choosing to integrate a straight-forward workflow and document management software with your existing systems to remove manual and repetitive workloads. Using a centralised accounts payable process integrated into your current systems provides:-

  • Automatic allocation of the right invoice to the relevant transaction
  • Automatically post invoices for payment
  • Automatically queue exceptions for handling
  • Deliver information on exceptions to the AP desktop
  • Make payment status available to everyone instantly
  • Adopt a push ebilling strategy where your customers don’t have to come to your Portal or website (Pull ebilling)

What are the major benefits?

  1. Reduce invoice processing costs
  2. Time savings
  3. Exceptions resolved quickly
  4. Supplier conflict resolution
  5. Early payment discounts
  6. Reduced supplier inquiries
  7. No double handling

Do you want a complete view of your AP process?

Do you wish your accounts payable function was a streamlined automated function giving you total control?

Do you know how many invoices you have outstanding?

Do you know how much money you owe?

Where in the system are the exceptions and and how many?

Who are the problematic suppliers?

If the answer is NO to the above, then get in touch.

Digital Print Management provide open solutions and our systems can be extended to include the automation of any business process. If you want to discover how easy the transformation to an automated Accounts Payable system can be then get in touch.

COMING NEXT IN OUR SERIES OF ARTICLES FEATURING INVOICE PROCESSING WILL BE ACCOUNTS RECEIVABLES AND WE WILL SHOW YOU HOW TO SPEED UP THE PROCESS OF ALLOCATING YOUR PAYMENTS.

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Filed Under: Accounts Automation, Document Management, Invoice Processing, Managing Print Costs, Outsourcing, Print Management Tagged With: , , , , , , ,

6 Great Tips On Why SME’s Should Outsource!

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I ‘m a strong advocate of the benefits that can be enjoyed by outsourcing a component of your business; whether its print, payroll, billing I.T; Customer Service to the outsourcing of a complete department of an organisation as long as it’s a strategic fit for the company and there is utmost transparency in the way an organisation manages the process.

Traditionally when people think of outsourcing they associate it with big corporations who have the infrastructure and the resource to benefit from a large scale re-deployment of one of their business components.

But this is not the only way that outsourcing can be used effectively. Small to medium businesses can use outsourcing to their advantage. Sections 382 and 465 of the Companies Act 2006 define an SME that has a turnover of not more than £6.5 million, a balance sheet of not more than £3.26 million and 50 employees; a medium sized company with a turnover of not more than £25.9 million, a balance sheet of £12.9 million and 250 employees.

I’ve talked about the benefits of outsourcing in the past with particular reference to payroll and billing here!

The same principles can be levied for any business component you are considering.

Here are 6 things to consider:

  1. Figure out what or where your company can outsource to make cost savings and streamline the organisation processes for example it might be marketing, web design, payroll or invoicing; all of which are important to a company but are time consuming and manually intensive.
  2. Outsource as much as you can but not the core elements of your business after all that was the main reason the business was established unless it’s some manufacturing element that you are considering.
  3. Dont be afraid to use the same company for many different things the more services that an outsource provider does for your business in relation to outsourcing the more you are likely to see volume savings; in the same way you see in the supermarket buy two; get the second for free. If you are looking to outsource your invoice processing/printing make sure they can manage the distribution element too for example you may print, mail and electronically send your invoices so make sure that the company you choose can manage this process for you and more importantly they know what they are talking about and can demonstrate success criteria.
  4. Investigate the market place and evaluate who you think best accommodates your requirements; don’t think short term, think medium term at least otherwise if you get it wrong it might be painful to get of and, you may well end up by repeating the exercise again six months down the road.
  5. Don’t be swayed by the cheapest option or choose on price alone if you do you will shoot yourself in the foot. There isn’t such a thing as a free lunch! When you see something cheap what’s the first thing that springs to mind “what’s wrong with it?” or; “that sounds cheap”! “What does everyone hope for but rarely gets; a great deal?” You get what you pay for and often a company that offers a service cheaply is trying to win your business with a view to a serious price hike three months later or; hasn’t understood your requirements. In which case you will find yourself in trouble and the cheaper service could have a detrimental effect on your business. Can you afford for that to happen?
  6. Finally, know what area or business function of the business you want to outsource? Why do you want to outsource? Be realistic about your expectations for outsourcing. Set a time limit to achieve your objective and most importantly work with a company that has the expertise and knowledge and can offer sound, impartial advice!
If you don’t want the headache associated with outsourcing your payslip and invoice printing contact us!
Digital Print Management are leading advisors in the outsourcing of all things print related. We are committed to ensuring our customers get the right solutions for their business which in turn results in cost and efficiency gains.
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Filed Under: Invoice Processing, Managing Print Costs, Outsourcing, Payroll Processing, Print Management Tagged With: , , , ,