White Paper: Improved Control and Accuracy of Invoice Processing

A seemingly small mistake in invoicing can create large ripples throughout a business…

By Rex Lamb

Reducing data entry errors is an important focus in every organization. Common methods to reduce errors include improved training, incentive pay and double entry of the data. In some instances, firms employ double-checking input work by another employee. Quality initiatives that began in the 1980s taught many how to more accurately measure errors and develop constructive plans to reduce them. All of these methods have some level of success in search of the elusive “zero-defect” work product.

A business looks to the accounting department for leadership in accuracy and control. In Accounts Payable errors take the form of incorrect matching of price and quantity, errors in assigning general ledger account numbers and errors in data entry into the accounting computer system. The implications of these errors can be costly. Invoices can be over-paid, paid late resulting in late fees and in some cases paid multiple times. Miscoding account numbers leads to incorrect financial reports and staff “churn” investigating spending variances. A seemingly small mistake during invoice processing can create large ripples throughout the business.

In public companies these ripples can have a sustained effect. Errors during the AP process can cause earnings reports to be wrong. These errors include the type described earlier plus lost or misplaced invoices that are later found and recorded. GAAP requires that invoices recorded in the month the goods or services were received. When an invoice is missed from a previous month, and the amount is material, a restatement of a prior month’s earnings may be required; something no CFO or CEO wants to happen.

There is now a solution to the problem of accuracy and control of invoice processing – FileBound. With FileBound invoices are scanned and electronically filed immediately upon receipt. When the invoices are scanned, selected data is recorded and imported into the general accounting system. The AP system has the exact information including quantity, price, total due, payment due date and much more. Since FIleBound has the invoice for processing there will be no more lost or misplaced invoices and the monthly AP accrual can be made with assurance of complete information.

FileBound – improved accuracy, improved control and an improved bottom line.

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