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.
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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. _________________________________ Ready to kick your paper habit? Register for an upcoming webcast! Learn More about PaperSave: Case Studies | Demo | News and Events | WhitePapers | Webinars | Videos | Contact Us Tags: electronic workflow, Industry News, paperless office, document management software
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