Invoice management solutions were initially noticed as the preserve in the giant mega-sized corporations, the huge multinationals and international conglomerates stretching around the world and criss-crossing the country with branches and offices. Get much more information about
invoice management system
However - and even though these bigger organisations are continuing to streamline their Accounts Payable (AP) processing with automated solutions - lots of other businesses are recognising the advantages of implementing an automated invoice management solution.
These are established, flourishing businesses, generally with turnovers of £30m to £500m, often independent, often family-owned, and operating across a number of areas or could possibly be based at one. From across the board industry-wise, these organisations represent several different markets, from retail and finance, to hospitality, manufacturing issues, delivery and logistic companies, educational establishments, health and service providers.
The unifying factor is that these growing organisations want efficient AP processing.
The Accounts Payable department remains one in the most paper-rich and process intensive in any organisation.
Implementing an invoice management solution signifies those paper-based invoices is usually converted to electronic kind, eliminating the difficulties associated with processing paper - danger of loss, cumbersome storage requirements, access and security difficulties, plus the associated expenses.
An invoice management solution also enables effective processing on the developing number of e-invoices sent and received - at the moment lots of companies need to print these to continue processing.
Utilising an invoice management solution also implies that all invoices can be processed consistently, within exactly the same system and regardless of original format.
Invoices are automatically matched to orders and receipts, queries resolved, invoices coded accurately and authorisation completed based on business guidelines anywhere inside the business by way of the internet.
Automated workflow brings further main benefits - enhanced visibility and control, alerts set to make sure deadlines are met, the automatic processing of repetitive tasks to free AP staff for much more strategic work, plus the associated reduction in processing charges.
And 'enhanced visibility and control' will not be just buzz-words. One of the main business problems facing an organisation is the fact that of late payment - and evidence points in most cases to this resulting not from a deliberate policy but as a consequence of poor practice and inefficient and slow manual invoice processing procedures around the part from the payer.
Inside a report final year Bacs, the not-for-profit organisation accountable for 'maintaining the integrity of payment related services' stated: 'Frustratingly, when chasing late payment, pretty much one in five SMEs (18 per cent) had been just told the customer had either forgotten to spend or just hadn't got about to settling the bill.'
With calls for the government to take even more stringent action to protect businesses against late payment and toughen the government's Prompt Payment initiative late payments are going to develop into an increasingly main headache for the late payers at the same time as those organisations owed money.
Enhanced visibility and control also assists organisations eliminate duplicate payments.
The industry for invoice management solutions is undoubtedly expanding with companies also attracted by the prospective to extend the benefits of document management in the AP division to other business areas, leveraging on their initial software investment.
