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3 Reasons AP Automation in the Mailroom is Imperative for Success
If you start looking at account payable automation, there’s a good chance you’re already at least a bit backlogged on your invoice processing. When you start implementing changes, you want to resolve as many issues as you can as quickly as possible. Processing changes can take a long time to review and implement effectively. The results of these adjustments also tend to be more cumulative and cooperative-multiple departments have to be able to work together to see the more complex changes through. To move quickly, you’ll have to look at the entire process. The quickest place to make changes is the intake process, usually your mailroom. If your AP is still being processed on hard copy paper, here are three reasons you should start digitizing those documents as soon as they’re received.
Better Invoice Management
No matter how effective the internal process, paper is simply more difficult to track throughout the AP life cycle. These pages can get stuck on someone’s desk, misfiled, or simply disappear altogether without any logical reason. When you shift to mailroom scanning for your AP management, these problems evaporate. The page is digitized when it is received. Anyone with credentials can review the electronic copy whether to process, approve or just research payments. Also, adding a front-end workflow will greatly reduce problems from missing invoices or processing delays.
Better Use of Resources
Having a team of AP clerks manage paper in addition to their entry and reconciliation responsibilities is a serious under-utilization of their skills. A staff that primarily handles scanning and paper has a different profile and pay scale than someone involved in payables processing or vendor interaction. Keeping these teams separate will be a much better use of your resources. Many companies are finding it’s actually most effective to outsource the invoice intake process entirely and let a third party vendor manage all of their hard copy invoices. Outsourcing is an increasingly popular decision because it is more flexible and can be scaled more easily than managing an internal department.
Fast, Long-Term Results
Not all vendors will be able to make the switch immediately. However, most companies who centralize their invoice scanning at the intake phase see big shifts within just a few weeks. Adding a document workflow to your invoice process will immediately introduce accountability and make tracing invoice receipt much simpler. There are virtually endless benefits to having quick access to invoice receipts. Most notably, is that it makes it easier for different people in the company to find out the status of an invoice. Another advantage clients note is that it keeps AP from losing track of individual documents. The processing turnaround time for an invoice is significantly reduced because delays in paper management aren’t an issue. With the invoice intake handled, your AP team can focus on keeping accounts well-balanced. Additionally they can work on finding more internal process improvements to move the department forward.
When your accounts payable hits a certain volume, it’s impossible to manage the paper effectively. Electronic invoicing has grown exponentially over the last ten years. Some of your vendors may have already gone to an entirely paperless system and send you invoices electronically. This solution has transformed AP departments across the country and it all starts with a simple mailroom change. Adding mailroom invoice scanning to your company’s procedures should quickly boost your department’s productivity. Contact NextProcess today to learn more about our document management solutions and how they can help your company.
