|
HOW CAN YOUR ACCOUNTS
PAYABLE PROCESSES BE AUTOMATED
EFFECTIVELY?
The automation of the
“accounts payable processes” is
difficult because of its distributed
nature. It is because of this reason
that approvals are required in many
levels which generates large volumes of
documents that are extremely difficult
to manage effectively. This not only
increases the time required to process
the invoices but also increases costs
drastically. It is due to this reason;
the best place to start reducing costs,
strengthen controls and increase
efficiencies is the AP processes. This
article will explain some of the key
elements that need extra focus to
successfully automate the AP processes.
Problems with Traditional
Approaches
There are several firms
who have tried hard and failed miserably
while trying to completely automate the
AP processes. The reason for this
failure is because they followed the
traditional approach. Though it seems to
be efficient, this traditional approach
involved more costs and delivers less.
It gives more importance for short term
goals and strays away from core
functionalities. But what is needed by
the company is a strategic approach to
takes paper documents out of the system.
Key Elements
The critical elements
given by business leaders are:
1)
Completely paperless
2)
Full Service
3)
No hassles processing
4)
Integration of in – house systems and
the extended enterprises
5)
Pay on the go
6)
Can be implemented quickly
7)
Should be adaptable to change
8)
Enterprise class
9)
Access from any where in the world using
a web browser
A Good Strategic Solution
Many companies have come
out with solutions for this problem
keeping in mind the critical issues
given by the business leaders.
The features which
achieve the required level of automation
are:
1)
Invoice Virtualization Centre: The
Company that has to automate the AP
processes receive the invoices and
information from the customer in any
format and converts it in to electronic
form. The data capture and the document
conversion will happen through any of
the virtualization centres of the
company. After receiving the invoice, a
combination of manual data entry and OCR
will be used for capturing the data in
electronic form. This combination will
ensure that the virtualization centre
will achieve high levels of accuracy.
2)
ERP Connectors: Efficient and effective
processing of invoices requires tight
integration of the system with
accounting or ERP systems. These systems
should allow you to transfer data from
and to any financial system.
3)
Vendor Portal: the automation companies
should have web portals through which
the vendors should be able to access
their invoices at any time without
needing to contact the company each
time.
4)
Monitors and comprehensive reports: The
automation companies should provide
several monitors and reports to analyse
productivity of the AP department.
Bottom Line
Several companies have
tried the traditional approaches to
automate the AP processes. This only
fixes short term problems and increases
the budgets later. The actual benefits
of the automation of AP processes can be
enjoyed by designing a strategic
solution and implementing it. |
