Posts Tagged ‘human error’

How Document Management Benefits Accounts Payable: Productivity Improvements

January 29, 2014

If you’re looking to increase your value as an employee, find out how document management can streamline processes and improve performance. 

Document management software saves time and money by automating labor intensive business processes for accounting and finance departments. In addition to the significant savings that can be realized, there are other significant advantages associated with accounts payable automation, among them improved vendor and supplier management, enhanced employee performance review capabilities, and more efficient transaction verification and audit control. When properly deployed, document management can result in a better, faster and cheaper accounts payable (AP) process. 

Productivity Improvements

Shifting from the manual paper processes of accounts payable to an automated electronic document management alternative leads to several immediate productivity improvements. Invoices are processed more efficiently with fewer errors as each part of the process contains specific checks and balances and contains automatic exception handling for most errors. Error reduction leads to faster validation and quicker payment approval allowing the company to take advantage of early payment discounts. Plus, staff are processing payments and not rummaging through piles of paperwork.

Time savings is a major benefit of using an electronic solution. When front-end document capture is used to convert paper documents into electronic files, the result is the nearly instantaneous ability to track every aspect of an invoice, regardless of where the documents arrive. Even the most distributed procurement process can be handled in near real-time. Physical space in the office is also conserved as paper is digitized and stored on a server and not in file cabinets.

The implementation of electronic process management, sometimes called workflow, yields a consistent predictable process for how typical AP documents are handled and how document exceptions are managed. AP staff can spot discrepancies immediately and can automatically route the issue to the appropriate person for correction. This yields an additional benefit to management as workflow applications provide an overall view of the process that can be used to identify bottlenecks, streamline processes and evaluate employee performance. The workflow application can also be extended to monitor the overall performance of vendors.

Document Management Industry Roundup: August 23, 2013

August 23, 2013
Give yourself a hand for a hard week at work. But first, take a look at this week's latest news.

Give yourself a hand for a hard week at work. But first, take a look at this week’s latest news.

This week’s important resources:

1. Is the paperless office a reality yet? Take a look at this online debate ZD Net had on the topic. Which side do you favor?

2. Do you agree that product and service organizations differ in how knowledge management is addressed and carried out?

3. It’s important to prepare students for the future, something paperless will be part of. Do you think programs like this allow students to be prepared for the technology they’ll have to use in the workforce?

4. How has BYOD affected mobile trends? The ITProPortal podcast answers this, along with other outcomes of adopting BYOD.

In case you missed our latest blog:

How do invoice errors cost your organization? Find out the impact they have on the bottom line and how FileBound can reduce them in our latest blog.

Improved Control and Accuracy of Invoice Processing

August 21, 2013
A seemingly small mistake in invoicing can create large ripples throughout a business...

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

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