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Invoice automation in accounts payable departments is on the rise, but there are certain roadblocks that are preventing it from becoming widely effective. A study conducted by The Institute of Financial Operations found that document-intensive practices are barring businesses from adopting wholesale automation across multiple departments. The AP Automation Study, an annual report, surveyed professionals across the globe about the impact of the most current technologies. E invoicing and the barriers in its way resized 600 Executive Director of the IFO Ken Brown spoke on the matter, saying, "AP professionals are being called on to do more cash management analysis and financial forecasting than ever before, but they're still handling the basic fundamentals of the job with manual tools." "The good news is that executives at the highest level are becoming more aware of the efficiencies automation can bring to the process," he added. Or are they? If so, only a small number of firms are acting on this realization. The percentage of companies that responded to the survey claiming that their companies used widespread automation was only 9 percent. This benchmark meant that these firms handled less than 10 percent of their invoices in paper. A full three times as many respondents said the percentage of paper invoices was as high as 90 percent. Apparently, accounts payable departments are still stuck in paper-intensive environments that restrict electronic workflow. Overlooked benefits of invoice automation E-invoicing became international news last month when multiple countries in Latin America passed a mandate that requires electronic registration of invoices with tax authorities to gain transparency of business operations in the region, wrote Steve Sprague, a blogger for Finextra. Many firms have responded to this mandate as just another burdensome compliance matter. However, those professionals have overlooked the various advantages of electronic invoicing, the post stated. A primary motivation behind the mandate was to crack down on tax fraud in the region, but there are additional benefits to the measure that North American firms could learn from. E-invoicing could diminish operational costs. Additionally, the legislation could motivate organizations to establish full-fledged document management systems and improve electronic workflow. A high invoice volume should never cripple an accounts payable department; an increase in financial payments usually equates to an increase in revenue. However, the reality in many industries is that paper invoices can be an overwhelming burden. E-invoicing makes this far less likely. If the technology is correct, the document management systems that these companies implement as a result of the directive should be able to handle a constant influx of invoices.
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INVOICE AUTOMATION AND THE BARRIERS IN ITS WAY
Invoice automation in accounts
payable departments is on the
rise, but there are certain
roadblocks that are preventing it
from becoming widely effective. A
study conducted by The Institute
of Financial Operations found
that document-intensive
practices are barring businesses
from adopting wholesale
automation across multiple
departments. The AP Automation
Study, an annual report, surveyed professionals across the globe about the impact of the
most current technologies.
Executive Director of the IFO Ken Brown spoke on the matter, saying, "AP professionals
are being called on to do more cash management analysis and financial forecasting than
ever before, but they're still handling the basic fundamentals of the job with manual
tools."
"The good news is that executives at the highest level are becoming more aware of the
efficiencies automation can bring to the process," he added. Or are they? If so, only a
small number of firms are acting on this realization. The percentage of companies that
responded to the survey claiming that their companies used widespread
automation was only 9 percent. This benchmark meant that these firms handled less than
10 percent of their invoices in paper.
A full three times as many respondents said the percentage of paper invoices was as high
as 90 percent. Apparently, accounts payable departments are still stuck in paper-intensive
environments that restrict electronic workflow.
Overlooked benefits of invoice automation
E-invoicing became international news last month when multiple countries in Latin
America passed a mandate that requires electronic registration of invoices with tax
authorities to gain transparency of business operations in the region, wrote Steve
Sprague, a blogger for Finextra.
www.papersave.com [email protected] 877-727-3799
Many firms have responded to this mandate as just another burdensome compliance
matter. However, those professionals have overlooked the various advantages of
electronic invoicing, the post stated.
A primary motivation behind the mandate was to crack down on tax fraud in the region,
but there are additional benefits to the measure that North American firms could learn
from. E-invoicing could diminish operational costs. Additionally, the legislation could
motivate organizations to establish full-fledged document management systems and
improve electronic workflow.
A high invoice volume should never cripple an accounts payable department; an increase
in financial payments usually equates to an increase in revenue. However, the reality in
many industries is that paper invoices can be an overwhelming burden. E-invoicing
makes this far less likely. If the technology is correct, the document management
systems that these companies implement as a result of the directive should be able to
handle a constant influx of invoices.
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