15 Feb Can your Account Payable go completely paperless?
The Accounts Payable function of any organization is complex. Trading partners employ a wide variety of invoicing and preferred payment processes, requiring your AP department to address a considerable number of possible situations. The larger your organization, the more varied and complicated the AP processes inevitably become. If your organization operates internationally adding multiple currencies into the mix, things become exponentially more complex.
Can paper be eliminated completely from the process?
There is no definite answer to that question. Yes, paper can most definitely be totally replaced with digital information processing; no, your organization is not able to become paperless on its own. A truly paper-free AP department requires active participation from every trading partner, and it’s highly likely that at least one of your vendors or suppliers will insist on a legacy paper-driven process.
So, why automate AP at all?
Though you may not be able to automate all inbound data, everything that happens once an invoice arrives is absolutely automation-optimizable. Even if a trading partner chooses to send your organization a handwritten invoice on a paper napkin, automated AP can use OCR (optical character recognition) to digitize the invoice, re-formatting it for consistency with your in-house process.
How much efficiency can be realistically achieved through automation?
Invoice management, electronic purchase orders, and e-invoicing can be 100% digitized, completely removing both paper and humans from the initial steps in the in-house AP process. Approvals workflow reduces processing time by approximately 70%, while eliminating duplicates. ERP (enterprise resource planning) systems integration enables 100% visibility, and automated payments via ACH (automated clearing house), wire, card, and check ensure 100% paperless outbound funds to trading partners.
Learn more about the benefits of automating AP by contacting simplifiAP today.