Audits and compliance demand proper approval of payments, but many companies find their policies inconsistently enforced. Purchase Orders can go a long way toward promoting proper payment approvals, but there will always be occasions where a creating a PO is simply impractical. Historically, companies have relied on signature books or, more recently, printed email approvals to validate invoices. Both of these methods require manual intervention to validate the approval and follow-up if invoices aren’t processed for payment.
Your ERP system may provide some approval workflow, but this isn’t always as flexible or configurable as you need it to be. In contrast, many automation workflow partners have in-application approvals for any payments.
When your company relies on manual accounts payable processes, your department’s turnaround time can vary considerably. As many as 97% of all invoices are still processed manually. The complexity of some invoices means they require individual review. However, there may be a high percentage that just require entry and matching to an accurate PO or a constant GL code.
Logikia Solutions a workflow partner that harnesses automation to push these invoices directly to an ERP module. When your staff only has the exceptions to review, they’ll be able to focus their time better and avoid backlogs. In fact, you’ll save so much time that automation makes the average number of invoices processed per AP employee jump by a factor of five. In other words, if you’re normally processing 1,000 invoices per employee, automation can make it 5,000 per employee.
The larger your company gets, the more important it is to keep all your accounts payable information in one place. If your accounting processes aren’t centralized, it’s much easier for duplicate payments to slip through when more than one employee pays the same invoice. It’s also easier for late payments to occur when everyone thinks that “someone else” is working on that invoice.
Handling all your invoice processing with a single, shared system strengthens internal controls. By putting all your invoice processing information in one central system, everyone on the AP department will have access to each invoice’s status. It also makes it easier to access all you AP data in real-time, which gives you a more accurate view of exactly what’s going on the AP department.
What is then a realistic aspiration
for straight through processing?
“… a true AP automation process
can be employed where invoices can
be matched against POs a line level.
Much of the accounts payable department’s time and energy goes into keeping information accurate and up-to-date. Poor data capture often forces AP support departments to spend long hours correcting and reclassifying documents in your ERP system. Errors are especially common in departments where employees are manually entering data into Excel spreadsheets.
Even with an optical character recognition (OCR) software attached to their AP process, many businesses struggle to record all their information accurately. You need to find a workflow partner that uses a combination of OCR and keying review to ensure extremely high data accuracy. For example, Logikia’ s proprietary data capture technology ensures over 99% accuracy on every invoice.
Keeping accurate, accessible records is another challenge AP departments need to tackle. Not only is it important that you record transactions accurately, but you also need to have the records in a format that’s easily accessible. Audits are much easier to tackle when your records are easy to understand, sort, and access.
Good AP software will automatically store transaction data. They’ll keep easily-searchable records of every step in the invoice approval process. These records can be accessed in real-time while invoices are processing and long after the invoice is paid. Couple that with digital document management (preferably from the same software suite) and you have electronic records that are easy to manage.
The tools in accounts payable software that give you control over your process, make data storage easy, and streamline approvals also have another advantage. They enable collaboration within the accounts payable department as well as between AP and other departments.
Having a single system to process all your invoice centralizes information flow. And when you give people access to that system, they can collaboration as a team to keep things running smoothly.
Improving accounts payable processing can be difficult, but the benefits are tremendous. With the right mix of automation, internal process improvement, and teamwork you AP workflow can be transformed into an efficient, well- oiled machine. And once your workflow in working for you, you can stop wasting time fighting problems in account payable and creation of the document ( such as: invoices, POs, shipping, notices etc.) and focus on how AP can help company thrive. In the world of computerised financial systems, every time a document is created we immediately generate a problem to the next person in line that tries to use that data effectively.
But before you can enjoy the benefits of accounts payable automation process and software, you have to get the software setup. If you chose Logikia solution for your AP automation, we’ll be here to help you every step of the way. We have a near perfect implementation score. That’s shape contrast to your industry.
Ready to get started? Contact Logikia today and see all the ways our technology can help you maximize the power of your ERP system.
NUMERIA ALLOWS US TO
- Digitize your data
- Extract your data
- Validate the extracted data
- Ensure approval workflow
- Facilitate the integration of the new paperless system into your computer systems
- Ensure management and archiving of records