The accounts payable process is a complex journey involving multiple steps, including invoice entry, payment methods, and approvals. However, even the smallest of these steps can significantly impact the timely payment of vendors. Unfortunately, dealing with paper-based systems can make these tasks more challenging and prone to errors.
In fact, paper is often the root cause of many issues that finance departments encounter. From hours of manual labor to potential fraud risks that can cost businesses thousands of dollars, paper-based systems can be a significant burden. That’s why many finance policy-makers are turning to a paperless accounts payable process to solve these problems.
As the buzz around paperless accounts payable processes grows, more businesses are seeking flexible, secure, and visible payment solutions. These benefits cannot be achieved with paper-based systems. If your finance staff is struggling with common payment problems, here are three simple solutions that can help ease their burden:
Improved Invoice Processing
One of the most significant benefits of implementing a paperless Accounts Payable system is improved efficiency. Your organization undoubtedly understands that faster processing times can result in cost savings and increased vendor satisfaction, but achieving such efficiency can seem daunting without a reliable AP solution. Fortunately, a paperless system makes scanning and uploading invoices easy for routing, resulting in faster processing times. In fact, many companies have reduced their invoice processing cycles by several days or even weeks by eliminating paper from the equation.
Reduces Storage Expenses
Storing paper documents in drawers and cabinets can be a costly affair. Opting for off-site storage may result in hefty fees while keeping these documents in-house can occupy valuable space that could be better utilized for other purposes. In addition to the physical storage costs, it’s essential to factor in the expenses associated with document destruction and handling and the risks of solely relying on physical documents without digital backups. Digital storage, however, eliminates all these expenses, ensuring that your documents are safe and available whenever needed.
Better Audit Controls
With traditional paper-based processing, it can be challenging to track the progress of an invoice, resulting in an increased risk of errors, discrepancies, or even fraudulent activities. However, with a paperless accounts payable system, electronic invoices can be tracked in real-time, providing complete visibility into the status of each invoice and eliminating the risk of lost or misplaced documents.
Furthermore, a paperless system allows for automated data capture and indexing, ensuring that all data is captured accurately and reducing the risk of errors due to manual data entry. The system also provides an audit trail, which tracks the movement of each invoice and the actions taken by every user. This feature ensures that all invoices are processed according to company policies, and any deviations can be easily identified and addressed.
This system also offers robust security features, such as user-based access controls and data encryption, ensuring that only authorized personnel can access sensitive data. Additionally, electronic invoices are stored in a centralized repository, backed up regularly, ensuring that all data is protected during a disaster or system failure.
Wrapping Up
Opting for a paperless accounts payable system is a strategic move that can give your business a competitive edge. Still, it is important to be aware of the potential risks involved. As with any business investment, financial risk is associated with implementing a paperless system. However, to mitigate the potential risks of selecting an inadequate solution, it is wise to consult an expert who can assess whether this system is suitable for your business needs.
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