Any business entity will owe suppliers or other creditors money. Having a consistent workflow is essential. If the accounts payable department lacks an efficient document management process, it is easy for productivity and cash flow suffered.
Managing accounts payable in a paper office means looking for the bills payable in a stack of files. This can be a time-consuming process and cause lag in the payment. A delay or confusion in the payment process may make your creditor angry. You may even lose a long-term client, hampering your customer relationship.
With a document management system for accounts payable department can be more efficient and effective. Here are a few advantages.
1. Timely Payments
Timely or early payment of invoices will give you the benefit of availing discounts from your vendors. By installing a document management system (DMS), you can use tools that help you make faster payments.
With a DMS system, you can easily monitor the invoice payments. A DMS automates your invoice payments to speed up the payment across the payment process and save money for the business.
2. There Are No Lost Invoices
When multiple invoices are flowing in it is very easy for them to be misplaced or get lost. Some paper invoices can be misplaced and some invoices are not recorded in your purchase order system. Which means you will miss out on making payment to your creditor. To avoid such situations, you can use a DMS eliminating paperwork entirely. Create electronic images of your invoices so that you don’t have to worry about finding them.
By adopting DMS, your team can also share essential documents to help support purchases to verify invoice payments by accessing the DMS. The AP department becomes more efficient in tracking invoices with simple keyword search instead of trying to find invoices in paper files all around the office.
3. No Errors
There are many AP related errors due to improper tracking of invoices. In case your purchase order system does not have a way to track your purchases, it is straightforward to overlook multiple invoices one after another. The accounts payable team can pay the vendor in error twice or not pay at all making a delay in the payment. Sometimes you may end up paying for orders that were not delivered.
In a digital workflow removes all the completed tasks and altering those responsible for the next step when there are late payments. Extempore processes allow you to halt and double-check an invoice.
Conclusion- With a smooth accounts payable workflow system you can have a fuss-free accounts payable system. Consider applying document management to your AP department to improve workflow and avoid overdue or early payments. Improve the overall effectiveness of your AP department. Call for a Demo from Docupile to resolve all the fuss in your accounts payable department.