The impact innovative technology has had on the business world has been immense. It’s not just been in customer services and manufacturing; it’s also made traditionally laborious areas, like accounting processes, more efficient making the tasks of AP departments that bit easier to undertake.
There is no doubting that the role an accounts department plays is vital. But the complexities of that role mean finance teams have never had it easy, with everything from accounts payable (AP) and accounts receivable (AR) to managing payrolls and undertaking financial reporting needing to be done accurately and increasingly quickly.
Technology has helped ease the pressure, lightening the load created by manual paper processes with simpler digital alternatives that offer better storage, retrieval and compliance options.
But in exactly what ways is this technology making a difference? We look at just 5 of the key areas in which these digital processes trump manual processes.
The age of office-bound operations is quickly disappearing, with scanning and cloud storage allowing authorised personnel to access documents and data from anywhere. Automatic Accounts Payable systems, like our own Kefron AP solution, allow more than simply document retrieval of course. But there is no doubt that the ability to check and confirm information held in accounting systems from anywhere and on any device in a matter of seconds helps to ensure a faster, more accurate process.
A key responsibility of a company’s finance department is to keep on top of every financial development. For that reason, comprising Month’s End reports have been a staple task, but also a demanding one in terms of time and effort. Innovation in finance technology has seen digital systems store and collate information in real-time, reducing the Month’s End report to something that takes a fraction of the time it once did. Critically, because changes are made automatically as soon as new figures are inputted, it ensures information is never weeks behind, accuracy can be guaranteed which in turn facilitates better decision-making and more effective strategizing.
Amongst the most frustrating aspects of the traditional finance systems is the approval process. The development of automatic AP systems, however, means that approvals can be automated within a set of specific parameters. It saves on a considerable amount of time, not just from the point of view of the department itself, with individuals no longer needing to chase approvers, but from the point of view of suppliers who always look forward to receiving faster payments. Add to that the lower risk of errors and duplication, and the advantage of technology is impossible to ignore.
One tricky area in the software age is the need for integration between systems. In the past, there was poor cooperation between different software providers, but in recent years there has been a more open attitude, allowing for a higher degree of integration. As a result, Kefron AP, for example, can work seamlessly with other systems without compromising on any of the efficiency.
While most will point to the environmental pluses that the Paperless Office offers, there are also benefits for companies. First and foremost is the financial savings, with paper invoices, purchase orders and receipts all costing money to supply, print and deliver. There is also the cost of management and storage, which requires investment in terms of time, organisation and facilities. Most significantly, they cannot be updated in real-time and cannot be accessed anywhere, which negates the benefits mentioned in the other points above.
To learn more about Innovative Invoice Automation Technology, click here.