Advantages of Accounts Payable automation

Companies with automated invoice processing count with several advantages over those that do not have it automated. Amongst the most important ones, it is worth mentioning:

Real time data

Large volumes of documents processing without losing effectiveness

Find documentation quickly

Several surveys have shown that the main challenge in the financial department is guarantee the continuity of the service and remote operarios, in addition to the annual cost of maintaining paper documentation, since almost 7% of the documentation can be lost; this is without forgetting a possible misclassification of documents and the annual cost of reproducing a lost document.

In general, to make the right decisions at the right time, it is essential to avoid the loss of invoices, payment errors, and lack of traceability, but information must be found quickly and efficiently.

Accounting process: automated vs manual

The performance of the accounting departments depend on the level of maturity in terms of the accounting process: the processing between receipt of an invoice and its approval varies between 45 days in companies that perform this process manually at 2-5 days in those that have it automated. Following the same criteria, the cost (paper and electronic) ranges from 15 Euros to 2.22 Euros.

The study carried out by CapGemini Consulting “Digital transformation to empower” estimates that the automation of accounts payable achieves a reduction in cost between 45% and 71%.

All this is possible thanks to the fact that the automation of accounts payable allows:

1. -Accessibility to data from anywhere

2. -Better control and management of the activity

3. -Improve times and more peace of mind in closing periods

4. -Eliminate human error by 99.9%

5. -Fast and correct decision making

6. -Traceability of operations

While the manual process of accounts payable means:

1. Reduced accessibility in terms of time and place, as well as dependece on other people.

2. Slow control and management of activity

3. Tension and lag in closing periods

4. Human error influences several processes: payments, billing, reports, inspections, etc.

5. Slow decision making, lack of analytics to assess costs.

6. Potential duplicate payments, compliance with law, lack of reliable data available.

Conclusion

To guarantee efficiency and success in the process of digital transformation of your company, you must choose a document manager that allows you to meet quantitative and qualitative objectives defined as:

• Guarantee of continuity of services
• Law compliance
• Greater control of expenses
• Visibility over your processes
• Improve the image of the company

• Eliminate processing errors

You can book a free and commitment-free personalized demonstration of DocuWare. You will be able to discover how document management and process automation can help you adapt the digital transformation in your organization. ¡Request your DocuWare demo today!