Congratulations, you have decided to implement a document management solution at your business. You’ve realized the countless hours lost searching for documents, redoing versions, tracking down approvals and basically every task in the office that involves paper, and you've decided to make a change. Now the question is - how much is all this going to cost?
We talk to companies every day who are looking to automate their accounts payable (AP) processes, and the burning question is always: How much will it cost us? And the answer is always the same: it depends. But that doesn’t mean you should be left in the dark. Here are the factors that influence the cost of the switch to an automated AP system, and what you should plan for when deciding.
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If you’re considering automating your accounts payable processes, you’re probably weighing a lot of different factors to make your decision. We talk to companies every day who are in that same boat, and we want to give you a straightforward list of the most important advantages and disadvantages of switching to an automated AP processing system.
Manual accounts payable processes can become messy. You may have a solid system in place, with procedures to upload Accounts Payable data to the cloud and integrate it with your accounting system. However, AP is prone to input and posting errors: someone in the accounting department can make a mistake; management didn't actually approve payment for a major purchase for which an invoice has been received; many invoices are hard to find because your boss insists on overstuffed file cabinets with invoices dating back to the Carter Administration.
You know the routine. Each month, you hand your accounts payable specialist the stack of invoices from your vendors and suppliers for entry into your accounts payable system. Your employee will spend the next two days staring at the computer, working to get everything done. At this point, the routine is so repetitive that they could do it in their sleep and often do. Sounds exciting, right? There has to be a better way. OCR technology could be the answer.
While many companies have digitized and streamlined their human resources and procurement workflow processes, significantly fewer companies have optimized their accounts payable (AP) process for efficiency. In many cases this is because Accounts Payable departments provide more of a back-end function whose function is to simply “pay the bills on time.” The reality of the matter, however, is that the Accounts Payable department is one of the most important in your business – often engaging in detailed time-sensitive activities – and should run as efficiently as all other departments.