Does your account payable department need improvement?
It is often observed that in an organization, there is one department i.e. accounts payable (AP) department which stays diligently active in hoarding its unstructured data including business data, transactions or records. It has to deal with volumes of documents which usually involve manual processes. The continuous business processes in Account payable department trigger good amount of time as well as money. Additionally, with difficulty in controlling processes and structuring, it sometimes results in duplication of work, commission of errors, loss of files/documents and in need to store massive amount of paper.
It implies that an organization’s accounts payable department is surrounded with variety of challenges. These challenges are reflected during the time of auditing, gathering or extracting physical documents, extra time during sign-off procedures, logistics, payment dispatch etc. The statistics reveal that manual AP process minimize employee productivity by 50% and increase per invoice processing cost by over 50% in cases where there is loss of invoices or include complexity. Thus, it shows that account payable department needs improvement in working processes and has to maximize efficiency.
Check-out the ways to improve operational efficiency-a brief go-through…
- Information Technology has provided a digital platform to bring efficiency in the work-flow processes of account payable. The market has launched some magnificent software that can reduce outlays and benefit the organizations. Some of the significant ones in the list are: Document imaging software or electronic document authorization software etc. Implementation of these software solutions can support in automatic routing within the departments to integrate invoice approval process or to safeguard the loss of invoices.
- Another innovative technology that is creating waves in the market is ‘Mobile Technology’. It is fastest and showcases ‘work with mobility’. It surely can streamline invoice authorization as well as approval process by using mobile gadgets i.e. smart phones, tablets, mobiles etc.
- Don’t miss the best amongst all i.e. OCR Technology. It is new and foster abundant scope in minimizing manual entry processes. The trends show that the use of OCR technology in accounts payable departments have reduced the physical efforts by way of manual data entry of invoice information or other reports upto 80%. OCR works by capturing data from imaged invoices automatically, verify it and upload into the accounting system for further editing. Hence, this leads to value addition in terms of productivity, savings and efficiency in organizations.
OCR Technology offers a platform to mechanize, integrate and simplify processes in AP department
Indeed, OCR technology is a boon for an organization where accounts payable department is facing chaotic situation in document/invoice processing. Actually, there is a need to improve cash -management processes and to promote transparency in managing volumes of documents in order to enhance efficiency in the organization.
There is a requirement of OCR mobile applications which should be equipped with appropriate features i.e. document/image capturing, automated forms processing, data extraction from diverse layout, automated invoice processing etc for optimal results. It will avoid duplication or loss of data and one shall have the advantage to work with mobility. The outcome is beneficial for the whole organization in terms of reduction in cost, increase in savings and thus, higher profits with better return on investments.
A research survey conducted by PayStream Advisors has extracted empirical data which is hereby explained through this bar chart:-
There are OCR mobile app developing companies who can customize appropriate mobile applications for the companies which can address the challenges of account payable through few clicks on mobile. The idea behind switching over to these OCR mobile apps is to embrace innovation for better productivity in current mundane account payable system.