The BPA files-Invoice Processing
BPA- Business Process Automation is a phenomenon organisations of any type and any size can take advantage of and achieve a healthy return on investment. DCC will be investigating some select business processes and the benefits of BPA in our ‘The BPA files’ series. Our first instalment is having a look at the most resource intensive and common business process, invoice processing. In general terms the method of processing invoices involves an accounts payable clerk, departments whom the invoice is related to and senior management. Additionally, Chief Finance Officers or an individual of a similar rank is involved in monitoring the incomings and outgoings but is not a part of the invoice processing cycle.
If you’re a large organisation or an SME, you’ll be receiving invoices frequently and if you’re an accounts payable clerk it will be your responsibility to organise the invoices and distribute them to the relevant members and manually key them into the accounts system. Completing these tasks is a tall order because invoices can be easily lost and misplaced. Department and management need to be made aware of pending invoices as suppliers need to be paid and delays cause further cost implications. As far as the CFO is concerned, he/she wants an overview of expenditure going out because budgets need to be forecasted as well as short and long term expenditure. Once again it is difficult to achieve this if invoice processing is disorganised and disorientated.
Automating invoice processing has many benefits, which will be presented in a way staff can relate to. Paper invoices being fed into a scanner and, via a workflow, sent to the correct department for sign off, supervisors/managers for a higher sign off and then into the accounts system, would that make life easier for all parties involved. Staffs are able to make better use of their time with productive tasks.
Supervisors and departmental managers can sign and pay off invoices quicker giving a more accurate and transparent view of cash flow to the CFO, allowing CFO’s to make the appropriate budgetary decisions. The elimination of manual entry ensures data is accurate and quickly available and the digital archiving of invoices means search and retrieval is easier too.
If you’d like further details on the technical side BPA, we’ve covered that already. Does this sound like something your organisations would be interested in? Give us a call or book your free onsite demonstration.