The accounts payable function [the processing of supplier invoices] has traditionally been a paper intensive task. Not only paper intensive but labour intensive too. This is one area that can be automated, removing the need for excess paper.
Advancements in financial technology (Fintech) are driving this transition, compounded by recently enforced social distancing which has fast-tracked even more UK businesses to become paperless.
In today’s blog we look at 6 benefits of updating your payables system.
1. Reduced administrative burden
Invoices can be entered into the software using several quick and easy methods. You can choose to snap a picture of the invoice on your phone, email it to your chosen app or ‘drag and drop’ a copy of the invoice into the software. The software will then process it using AI to extract the relevant information. It can then be reviewed and published to your accounting software.
2. Reduction of processing errors
Data entry errors are one of the biggest problems for manual accounts payable processes. Auto data extraction removes human error and as the software allows you to set rules for suppliers, such as what nominal account to allocate the invoice to, processing errors are reduced.
3. Real-time information
As processing delays are removed, you can rely on your accounting software to provide you with up to date information giving you a more informed view on cashflow.
4. No more lost items
Removing the passing around of physical invoices means that items will no longer get lost. While Receiptbank and Hubdoc can auto fetch invoices direct from your suppliers, software such as ApprovalMax can enable a digital multi-layered approval process.
5. Reduced storage requirements
Documents are stored in the cloud, greatly reducing the need for storage space.
6. Quick and easy document retrieval
As all postings to the account’s software have a digital image of the document attached, it is much easier to retrieve them – no more searching through paper files!
If you are interested in automating your aged payables process, please contact our team to discuss how you might benefit. We regularly work with the below apps, but will work with you on a solution to suit your requirements.
Easy to use and accurate, Receipt Bank is a favourite at Harold Sharp for processing both supplier invoices and expenses.
Free to Xero users, Hubdoc automatically sorts and stores documents into customisable folders as soon as they arrive.
This has the added benefit of a multi layered approval process.