Invoice management is all about managing and simplifying the process of accounts payable.

Having a “complete” view of the Accounts Payable (AP) process using a streamlined and automated end-to-end invoice management system gives your company control over all the processes and any financial implications.

Managing the Accounts Payable process and achieving efficiency is discussed here.

Automating the processing of invoices by integrating straightforward workflow and document matching software with existing systems removes manual and repetitive tasks.

Being able to access comprehensive financial management information quickly speeds up the decision making process for audit and reporting purposes as well as providing the “what if” scenario.

By being able to automatically consolidate and reconcile  orders, invoices, payments and related documents to help manage allocations, cash flow, payments ensures that any delinquent payments, exceptions and queries in the system are quickly dealt with improving customer and supplier relationships  respectively.

An accounts payable system which is largely paper based takes up time and the effective management of human resources who are having to manually input invoice content, matching and validating invoices with purchase orders, handling supplier inquiries.

This is further compounded by escalating exceptions and discrepancies to senior management for clarification or sign off which consumes management’s time and is costly having to resolve invoice queries which could be handled by the Accounts Payable team assuming they have an overview of the financial system.

Managing your accounts payable – Can you answer these questions?

Do you know the answers to these questions?

1. How many invoices are outstanding?
2. How much money does the company owe?
3. Where in your system are the exceptions and queries and how many do you have?
4. Who are the suppliers that are problematic?

What are the benefits to automating Accounts Payable?

Invoices typically come into an organisation by post, fax, email and are then categorised.

They are forwarded to the relevant department or person for approval of the invoice which is then matched to a purchase order, verified, approved and signed off for payment.

If it exceeds the company’s payment limit it then has to go up to management for further verification. Assuming the invoice is then ok it is input into the accounting system ready for payment.

Invoice queries slow the process

• Is it from a valid supplier?
• Is the invoice correct and does it match the PO?
• Is it a duplicate invoice?
• Is the invoice just part of the total order value?
• Does the invoice match the delivery note?

The benefits in implementing an effective AP solution?

• Easy financial reporting and tracking of all invoices in the system.
• Reduction in invoice queries having to be dealt with by senior management.
• Automatic matching of invoices and validation so only accurate invoices are accrued.
• Pay suppliers on time and avoiding late payment surcharges which in turn leads to better supplier relationships.
• Avoids month end deadlines because there are no peaks and troughs.
• Reduced stress and pressure on the AP team resulting in a more productive and efficient department.

How much could automated invoice processing save you?

Automating the accounts payable process saves time, money and reduces the exceptions in your system!

In our next blog: How to speed up your Payment Allocation (AR) Process

Next steps

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The post Accounts Payable Solutions. How to automate the process. appeared first on Digital Print Management.

Achieving accuracy and efficiency in your finance department through invoice automation! 

Cost reductions, improved efficiency and better allocation of resources are just some of the savings that can be gained by implementing automated invoice processing.

Accounts Payable if done manually can be time consuming, complex, prone to error and provide any number of challenges for an organisation particularly the finance department. Manual processing includes receiving invoices by post, fax or email which are then categorised.

Invoices will be then forwarded to the person responsible for the invoice for checking and then matched to a purchase order number assuming the person has created one; the invoice may then require further authorisation from senior management.

Finance departments are challenged with needing to cut operational costs whilst at the same time ensuring invoices are paid on time so as not to upset the supplier-company relationship.

Efficient invoice processing can be achieved by implementing an automated invoice processing solution.

Accounts Payable Issues

Typically the following problems hinder the accounts payable process:-

• Collating invoices that come from different suppliers or cost centres, in many different layouts and delivery formats – post, fax, email
• Labour-intensive processes required to input data can be complicated further if linked to different cost centres and/or involve currency conversion
• Errors associated with manual data entry
• Longer lead times due to manual routing, processing and sign-off procedures involving individuals in different departments and possibly different countries
• Inefficiencies due to time spent gathering physical documents in order to match invoices with purchase orders, delivery notes, contracts and accounting system records
• Inability to maximise financial benefits associated with payment schedules such as discounts for early payments or fees for late payments
• Risk of document loss or damage as documents are received at multiple input points and may be routed or classified incorrectly
• Costs associated with manual document routing, shipping, couriers, storage, archiving and auditing
• Inability to easily audit invoice processing and payments to match up document flow with the accounting system

Our solutions are not substitutes for your current systems as they work in conjunction with your existing infrastructure. To find out more about how automating your AP and AR process will save you money fill in the form below and one of our advisors will call you.

The post Invoice Processing Automation. How to automate your invoice processing! appeared first on Digital Print Management.

In my last article I discussed the Accounts Payable process. You can read more about that 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.

Accounts Receivable Automation.

How does automating the Accounts Receivable 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.

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

Are you struggling to manage your accounts processes?

Are you deluged with paper?

Do you want to get your invoices out faster?

Get in touch for more information 

The post How to automate your AR Process? appeared first on Digital Print Management.

Many organisations are challenged by wanting to break free from invoice processing which can be a slow and costly paper based system.

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. By capturing the invoice information using an intelligent capture tool allows extraction of invoice data whilst at the same time updating your ERP accounts system with no manual entry
3. Consolidation and reconciliation of purchase orders, invoices and payments are automated which helps manage allocations, cashflow and payments
4. Invoice processing automatically matches and verifies scanned invoices with PO’s
5. The invoice process is improved because it 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?

It is the start toward adopting an ebilling strategy for your organisation.

Automating the processing of invoices and choosing to integrate a straight-forward workflow and document management software with your existing systems will 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 have 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?

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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The post Invoice Processing. 5 Great Ways to Reduce Your Paper-Flow appeared first on Digital Print Management.

There are many companies still choosing to print these time critical documents in-house.

Choosing an end to end invoice processing and scanning solution will speed up the accounts payable process.

Why?

Here are some well documented reasons…

Because its too expensive to outsource.
Because we don’t want to give up control.
I want our envelopes post marked with our address details.
Because the Directors want to retain control of the print and despatch of our statements/invoices

If it’s taking you and your company too much time to process and generate your invoices and statements then you really should think about automating the processing by opting for a print services provider.

A printing mailing service provider specialises in the process, printing and inserting of invoices and statements.

Let’s look at the above points in more detail.

Twenty years ago outsourcing this onerous task would have been cost effective for the for high volume generators of statements and invoices.

Today, technology has changed and improved to such a degree that any company generating a few hundred invoices will benefit from tangible cost savings in postage and processing especially when this is weighted against the costs of doing it in-house factor in over ordering of stationery, consumables, maintenance fees, inserting machines and employees who are involved in the process too.

Retaining control – The question that needs to be addressed is do you trust your billing software to output the correct data? Are you painstakingly checking certain customer invoices for errors or omissions prior to actually sending them out?

Even if you have specific customers that require you to check prior to sending most, if not all mailing services will have a medium with which you can isolate those documents view and approve prior to print or sending electronically.

Envelope details – this is given as most print companies will suggest that the outer envelopes will be pre-printed with a return address, company logo and postage indicia in the corporate colours.

Company Directors are insistent in keeping the process in house – Next time the accounts department process the monthly, weekly invoice or statement run ask the Directors to spend time in the department just to see what’s involved in the process.

Present them with a time V cost analysis report that you’ve done in advance, costs both visible and invisible should be shown then see what response you get? I’d be very surprised if they didn’t exhale sharply and respond with “really it costs that much!”

What are the benefits of automating the process?

If your company regularly sends out invoices and statements in a paper format as well as providing electronic billing then you will benefit from having this process automated.

The outsourcing of invoice and statement printing is not as complicated as you think.

By understanding a company’s billing cycle, how the information (data) is extracted out of the accounts system and how to send the data are taken care of by the mailing partner.

If managed correctly by the printing services company the cost savings will be evident.

For example by speeding up the processing time i.e reducing the time taken to despatch bills or statements, receipt of a datafile on day 1 can result in despatch the same day, which can have a dramatic impact on the DSO (days outstanding).

There is minimal time spent by the company once the data file has been emailed because the mail service provider does all the work.

Pre-sorting your bills and statements specifically for Royal Mail or DSA (downstream access) will offer huge savings on postage.

Outsourcing this non core business activity enables you to have the option of sending paper based items and an electronic version as well – multi channel distribution.

The data file can be pre-sorted for bills and statements that are required to be printed and posted or to be electronically sent.

In effect, your only concern is ensuring the upload of the information file. This is the only part of the process that your business truly gets involved in.

The biggest advantage of outsource bill and statement printing is that your outsource provider does all the work associated with printing and prepping of your invoices and statements for mailing.

You also have the flexibility to change the layout and format of your documents because most outsource printers can print in colour at the same time as printing the statement or invoice information therefore implementing a form change becomes effortless!

Most customers have come to expect paperless billing and it is cheaper than sending a paper version.

There is also a compelling argument to outsource the processing of your electronic bills and statements.

Of course there is always the option of implementing a complete end to end invoice processing scanning solution.

For more information about how invoice processing and scanning solutions can streamline your company process then click here for more information.

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 What do you do, how do you manage the process of billing your clients? Let us know your thoughts so we can share it.

The post Invoice Processing. How to automate the process appeared first on Digital Print Management.