Accounts Payable Workflow In Minneapolis: How Document Management Solutions Benefit Accounts Payable

Regardless of size, industry or mission, every organization strives to improve accounts payable workflow in Minneapolis. Invoice processing is a manual, clerical function that unnecessarily erodes time and cost efficiencies in many companies. With the right document management solution, accounts payable departments can streamline this process and gain business-enhancing benefits.

Data from industry analysts substantiate the need for document management and automated workflow solutions. For example, Gartner, Inc. concluded U.S. companies spend up to $150 processing just one invoice, with 70% of that cost devoted to manual tasks.

Numerous companies today realize the competitive advantages of using document management technology. The upward trend in usage is expected to continue, but most likely at a more rapid pace. The following benefits substantiate implementing document management solutions for improved accounts payable workflow in Minneapolis.

Cost Savings

When you install a document management solution to improve your accounts payable workflow in Minneapolis, you save money on several fronts:

-An experienced document management company can help you calculate your anticipated savings from automating your specific accounts payable process. However, estimates from industry providers can give you a good indication of the savings magnitude.

Multiplying your monthly invoice volume by a typical savings amount of $14.50 for each invoice processed in an automated environment, gives you an estimated monthly savings. So, if you process 2,000 invoices a month, you can expect a monthly savings of $29,000 ($2,000 x $14.50 = $29,000). With savings numbers like this, you can begin to see a very attractive return on investment!

-Automating your accounts payable workflow in Minneapolis drastically shortens your processing timeframe. As a result, you have more flexibility regarding when you pay invoices. If it makes good business sense for your company, you can take advantage of early payment discounts.

You can also avoid accruing late fees on any invoices stuck in the manual payment process. Capitalizing on vendor discounts and avoiding late fees provides regular and substantial savings.

-Hiring, training and maintaining employees represent significant expenses for companies today. By automating your accounts payable processes, you won't need as many people to perform labor-intensive invoice tasks, such as data entry.

-In a manual accounts payable process, paper rules. Since the paper keeps coming with each transaction, you need to store it in filing cabinets and containers.

With document management solutions, you trade paper for digital records. Your physical storage needs are eliminated. And, the space formerly dedicated to paper storage can now be put to more productive use.

-Without paper, you won't need to ship and copy accounts payable documents. Electronic access of your records saves on shipping costs, copy machine supplies and printer materials.

Time Savings

Document management technology cuts invoice processing time from an industry average of 27 days to just two days. Instead of massive amounts of paper floating throughout your organization, you can capture invoice images immediately on receipt and manage the entire process digitally.

Automating your accounts payable workflow in Minneapolis cuts processing time, simplifies the process and reduces the number of people required to handle each invoice. Additional time savers include:

-The streamlined document management process eliminates the risk of losing paper invoices.

-You can expect fewer, if any, errors in your accounts payable processes.

-Documents become immediately available. Instant access to information, as well as additional reporting capabilities, produces better and quicker decision making.

-Your document management solution can integrate with your ERP application. Therefore, you can further simplify the process by matching invoices to receiving documents and payments.

Strategic Focus

Any time you free staff from routine administrative work, you allow them to focus on more important projects. With a document management solution, accounts payable employees can perform more strategic tasks that contribute to core business functions.

Delivering accounts payable information quickly and easily improves decision-making and communication among company staff. At any time, you can get an immediate view of your company's financial exposure. Additionally, you can nurture your vendor and supplier relationships and increase the likelihood of ongoing favorable terms.

Regulatory Compliance

Quicker access to documents and transaction histories facilitates regulatory auditing. Your automated accounts payable workflow in Minneapolis frees your staff to spend more time on regulatory and compliance projects. Sarbanes-Oxley, for example, requires meticulous accounting practices. The less time your employees spend on manual tasks, the more reliable your compliance data will be.

Document management solutions simplify processing, storing and retrieving of your accounts payable records. As a result, your business benefits from cost and time savings, improved strategic focus and reduced risks with regulatory compliance. Implementing accounts payable workflow Minneapolis leads to peak performance for your operations.