Plugging the Leaks in Your Accounts Payable Process

If your company is still processing vendor invoices manually, you are leaking cash out of your organization. In fact, it is surprising how much money even a small company can lose when you add up the cost of late fees, lost discounts, fraudulent bills/payments, and an extended payables cycle. Add to that the cost of staff time spent handling paper documentation, the physical movement of paper invoices through the approval process, and the storage costs of maintaining paper files, and the case for automating the AP workflow almost makes itself. In fact, time and money are the two most common pressures that drive companies to automate the AP department[1]. The traditional paper-based process presents lots of opportunity for improving workflow and reducing costs:

High Transaction Volume and Variety: Today’s payables department receives invoices in a variety of formats including faxes, email attachments, EDI or XML supplier invoices, and more. In addition to the cost of storage, maintaining paper trails and finding relevant documents take a heavy toll on AP resource time.

Inconsistent Capture of Data: With so many different formats, identifying the right data to enter for your financial system becomes a game of 20 questions. Is this one of our approved vendors? Where’s the invoice number? Do we have a PO? Are there detailed line items? How do we pay this vendor – ACH? Check? Are there discounts for early payment? What are the late payment penalties? Who needs to approve this?

Manual Tracking of Approvals: Once an invoice leaves the ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 30 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.