Invoice Management Pains
Lack of policies and clear procedures.
Manual stare and compare to validate purchases
Chasing down sign-offs.
Reams of paper, cluttered desks and jam-packed filing cabinets.
Not just Painful but Expensive.
Filing a document costs minimum 25 cents per sheet, per month
Average 5% of an organization's documents are lost or misfiled
Cost to recreate a misfiled document averages $175
7.4% of an executive's time is spent looking for lost or misfiled documents
Counting lost and misfiled documents the average costs rise to $20.00 per document
What does this cost add up to in your operation ?
To eliminate these pains and costs there are several components to invoice processing policies and procedures you need to consider. They include:
the policies dictating how to process the invoice;
the actual invoice collection, processing and feed to the general ledger; and
the management of all associated documentation.
Invoice collection, auditing, distribution for approval review, and feed to the general ledger are tasks that may require inter-department resource coordination, adding complexity. Additionally, where and how the original invoice and all supporting documentation is to be stored for future reference needs to be planned for. Once all of this is in place, a method to ensure accountability that the policies are consistently being applied by each staff member should be designed and implemented. The task of managing your invoices and the feed(s) into your accounts payable process grows in complexity with invoice count, vendor diversity and process rules. All manageable with defined procedures.
Invoice Processing Automation
Using an invoice processing solution where your policies and rules can be applied methodically to every invoice will greatly reduce the amount of time related to all areas of invoice processing, from collect and capture, validate and reconcile, and review routing, to then feeding the payment approval notices to the AP ledger. Using a SaaS solution where your policies and procedures can be applied will guide your team to operate with a best-in-class efficiency. This same service can also provide document storage (invoice, vendor correspondence, dispute documentation, approval signatures and facilitate document management for research, audit or litigation.
A robust automated invoice processing service should include the capability to:
Track an invoice from its bill date to confirmed payment date;
Apply all your validation, reconciliation and allocation rules,
Consistently code the charges to your Chart of Accounts,
Route the invoice for review and approval, and
Provide an electronic exchange with your AP system.
Correctly defining invoice processing procedures will eliminate an inefficient work environment and adhoc steps that leads to employee frustration. Implementing invoice processing automation service that provides the functions described above, and allows you to implement your policies, will further advance your initiative and create a more efficient strategic work group.