Organizations are dealing with an exponentially growing number of information that arrives from various sources and in a lot of different formats. By the end of the day, it’s becoming quite a challenge to have quick and secure access to the business information they need to efficiently operate and compete in the market. One of the tasks that require special attention is invoice processing. And Invoice Processing as a Service may be the solution for the headaches that it is usually associated with it.
Whether you work in a big company or a small organization, one thing is for sure: invoice processing tasks are mandatory, take a lot of time, and involve several business processes, workflows, tools, and people. The fact is that we all receive invoices and that’s when the work begins!
If you are looking to automate and optimize this business process, guarantee its efficiency, lower operational costs, transform fixed to variable costs, and reduce SLA uncertainty (Service Level Agreement), this article is for you.
A process step by step
A typical process of paying an invoice begins on its arrival, at the entry point. Once the invoice is received, it’s time for the accounts payable clerk to organize and sort, capture and scan, classify and extract, validate fallouts, and integrate data into the core systems (ERP, or invoice processing software for instance). So, the entry point is absolutely critical to the rest of the flow. Automating data entry increases team productivity and ensures information accuracy.
We all know that invoice processing involves a high percentage of risk, complexity, and costs. After all, it is a critical business process with a great impact on any company’s performance. According to some market research companies, although technology has evolved a lot over the past years, more than 90% of all invoices ar still manually processed, and the average of human indexing errors is between 20% – 40%. It’s really a time-consuming and prone to errors task often associated with:
- High concentration of tasks that no one recognizes value.
- Meet deadlines with no workload control.
- Multiple systems/teams to validate info accuracy.
- Information delivered lately by vendors (near termination).
- Fines or mistrust when failing due to no payments.
- A big effort of re-work due to bad data accuracy.
- Logistics due to lack of space.
- Lack of process control: noticed only when requested.
Optimize and automate data entry are the keywords
If you read all the above ideas and the scenario is familiar to you – or reflects a typical day of work in your organization – you may agree that it’s time to start doing things differently. It’s time to digitally transform your existing processes to make them much more efficient, secure and cost-effective.
All that you need is a proven invoice processing solution and a team of certified experts that automate data entry, take the ownership and the risk of the whole process and are totally committed with the deliverables.
Invoice Processing as a Service – paying per page with an all-in-one approach (cloud-based capture software + people to classify fallouts + business processes and rules + methodology + integration in the core systems) and no headaches
It’s true that invoice processing solutions have been transforming paper to digital for more than 20 years. However, it is still a painful process and not only a tech issue! On-going expenses, lack of experience dealing with large volumes of documents, and limited and expensive resources for data verification/validation/entry, still bring imperfection to the process.
The Invoice Processing as a Service option (production environment in-house – the factory within the factory – or in vendor’s facilities) surpasses all these challenges. In the end, you get what this is all about: the accurate information integrated into the right corporate system at the right time, and readily available, compliant and secure.
- Certified document management architects and tailor made software are integrated into your building and infrastructure or in the vendor’s facilities.
- Scanning “machinery” – capture hardware and software – and digital imaging treatment utilities are provided by the vendor (documents can be managed both physically and in digital format, considering the source in which they are captured, processed and stored for proper retention schedules and records management).
- Operations are fully integrated into the document management and processing chain process.
- Data and images are delivered or released into the core systems (such as the ERP).
- The management of the entire document management process, including staff recruitment, is the vendor’s responsibility.
So, Invoice Processing as a Service may include the following activities:
- PO Box maintenance – daily documents pickup, transport and delivery into the Vendor’ Centre.
- Open envelopes/letters.
- Sort documents by Entity type.
- Scan and Classification by Entity type.
- Invoice Header metadata extraction (Printed metadata only): Vendor Number, PO Number (when available), Invoice number, Invoice Date, Currency, VAT Amount, Net Amount, Total Amount.
- Quality control on extracted data with 99% accuracy.
- Dispatch – Documents packing in batches into boxes/envelopes to be returned back to client address.
- Report & Project Management – Mailroom activities reporting, Operational team contingency, Business Continuity Plan, and Disaster Recovery Plan.
Impact towards the organization
Once you’ve automated data entry in your accounts payable and invoice processing process, you will rapidly understand that it will affect other groups within the organization such as procurement, treasury, and accounting.
In fact, Procurement will be able to use invoice details to audit contract compliance and determine if preferred suppliers were used. On the other hand, Treasury may benefit from understanding the cash ramifications of altering payment schedules or missing deadlines. Finally, Accounting can use accurate, timely accounts payable and invoice processing information to make sure that financial reports reflect, indeed, the organization’s market position and provide all the needed answers to stakeholders.
Papersoft’s Invoice Processing as a Service approach was specifically designed to address all the problems associated with invoice processing tasks. It will allow you to save time and costs while making sure that information keeps on track, audited and organized all the way through the process.
– Put yourself these 5 questions when dealing with invoice processing: Each month, how many invoices do you process? Considering that number, which is your final cost per each one? Which is your rate considering data entry errors and how does this affect your daily work and revenues? Do you tend to miss paying discounts or deadlines? Do you usually fail an audit on your Accounts Payable process?
– Discover our Plans and Packages.
– Contacts us and ask for a proposal to see the power of ‘Invoice Processing as a Service’ (fee per page).
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– Download the Free Industry Watch Report by AIIM and Papersoft “Paper-free progress: measuring outcomes” and see how paper-free is improving productivity, accessibility and compliance, the progress you’ve made and how your organization compares to others.