When your company owes your suppliers or other creditors money, it's important to have a consistent workflow. When an accounts payable (AP) department lacks an efficient document management process, it's easy for productivity and cash flow to suffer. But with document management, the accounts payable department can be more effective and efficient.
Paying your invoices on time (or even early), allows you to take advantage of supplier and vendor discounts. With the help of a document management system (DMS), you can equip your AP department with a valuable tool that helps you make payments faster. With a DMS, you can easily monitor when invoices come in and automate your invoice payments to speed up the payment process and save money for the business.
No Lost Invoices
When you have multiple invoices coming in simultaneously, it's easy for them to get lost. Paper invoices can get misplaced and invoices that aren't logged in your purchase order system can mean you miss out on making a payment to your creditor. Instead, you can use a DMS to eliminate the need for paper. You can create electronic images of your invoices, so you don't have to worry about finding them when your AP team requires them. Your team can also share important documents to help support purchases to verify invoice payments by accessing the DMS. Your AP department also becomes more efficient in tracking invoices with a simple search instead of trying to find invoices in paper files spread around the office.
Many AP-related errors involve improper tracking of invoices. For instance, if your purchase order system doesn't have a way to track your purchases, it's easy to overlook multiple invoices that come in at the same time or one after another. Your AP team can pay a vendor in error twice or pay for orders before verifying the order was delivered. But when you employ document management, you can reduce errors in your AP department. For example, you can go back to the previous version of your edited documents if errors occur. This helps your team identify the origination of the invoice error.
A digital workflow keeps track of tasks, removing them as they are completed and alerting those responsible for the next step when they are late, this prevents multiple payments. Ad hoc processes also allow the process to halt while you double-check an invoice accuracy.
Improving your accounts payable workflow requires using strategies that facilitate efficiency, and you can achieve this by using document management. Consider applying document management to your AP workflow to improve the effectiveness of your AP department.