Accounts Payable Entry Level
As organizations look to drive down costs and improve efficiency, manual and time-consuming processes in accounts payable (A/P) are an ideal place to start. A/P processes are sometimes distributed in nature, may require approval on many levels, and generate huge volumes of paper and electronic documents that are difficult to effectively manage. Document imaging systems enables companies to achieve process efficiencies and cost savings in three key areas:
* Capture, storage and retrieval of data and documents * Automation of critical business processes to drive efficiency * Sharing of information and extension of processes to internal and external resourcesI
Integration with ERP and LOB applications allows companies to seamlessly enable a single interface to all payables transaction content, and extend automated processes into these applications. Integration will significantly improve response times, eliminate time-consuming duplicate data entry, reduce errors, increase processing efficiencies and enhance levels of service.
Implementing document management/imaging technology helps managers and employees identify, classify, track and manage all forms of A/P information, from inception through
end of content lifecycle. The technology manages all types of corporate records, regardless of whether record is in form of a physical document, an email with attachments, or an electronic spreadsheet. The solution allows users to establish retention periods, organize and retain these documents and other assets for legally required amounts of time, and provide quick, on demand access to them.
As was stated in Part I of this series, a document imaging system in accounts payable will have good ROI if some or all of these conditions exist:
1. There are 5 or more payables clerks 2. They are manually matching checks 3. Invoices have to be approved after they are received. 4. Receivers are being printed and sent to accounting. 5. Some payables become receivables. 6. You process hundreds of invoices every week from same vendor(s)
Much of processing in accounts payable can be automated to some degree by using document imaging technology. An analysis of department will determine to what degree you can automate and realize a good ROI. This article addresses entry-level document imaging and how you can make it pay off.
An accounts payable department with at least 5 employees should be able to justify a document imaging system based on vendor research and check matching. These two functions may take 30% or more of a clerk’s time. Eliminating check matching and reducing time it takes to research vendor issues will increase productivity 15-20%. In addition you will have better control of your invoices, and auditing will be faster and cost less.
Setting up an entry-level document imaging system is not complicated it just requires a plan. The first step is taking a document inventory.
* Get samples of all documents that are part of invoice paying process, which may include but is not limited to:
o Purchase order o Packing slip o Receiver o Invoice o Expense report o Check
* Read How to select a document imaging scanner to help you select right scanner for your needs.
* Determine origin of each document and how it is created.
o Internally or externally o Computer generated
