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Posts Tagged ‘invoice processing’

07Sep

Invoice Processing

Written by Ken Kramer. Posted in Scanning and Capture, Terminology

Invoice processing is a digital transformation solution that provides the means to scan incoming invoices, separate documents with classification and extract invoice header and line item information.  The final result is data transfer to an accounting system and a reduction in overall time and labor to process payment.  The system typically combines several pieces of software, including: document capture and scanning, workflow/BPM and a document management system.

Typically, invoices are scanned when they enter the organization in the accounts payable department.  The scanned documents go through a document classification system, information is extracted, and operators review the results.  From there, depending on the organization, invoices can be routed for approvals through workflow, or can be placed in an end repository or DMS for archival and retrieval purposes.

Invoice processing and AP solutions are key focal points for any organization looking to transform and eliminate the flow of paper.  It is a labor intensive process, and involves the manual keying of information, labor intensive checking of accounting systems and review for errors in billing.

 
See our Invoice Processing Solutions

07Sep

AP Automation

Written by Ken Kramer. Posted in Scanning and Capture, Terminology

AP Automation is a solution or series of solutions that helps organizations automate the processing of inbound invoices.   Invoice processing is one of the most paper intensive processes within any organization, and depending on the size of the company, accounts payable departments can be totally inundated with paper.   AP Automation and Invoice processing solutions can be a combination of software and hardware to provide the following:

  • Scanning and capture of invoice documents and data
  • Facilitation of approvals through AP workflow
  • Archive and routing of invoices with a document management system

By creating a digital invoice process, companies can glean the following benefits:

  • Decrease costs and personnel required in AP departments
  • Eliminate the routing of paper
  • Take advantage of early pay discounts
  • Quickly identify errors

 

See our AP Invoice Solutions

Invoice Scanning and AUtomation
20Jun

The Evolution of AP: AP Automation Levels for Invoice Processing

Written by Ken Kramer. Posted in Blog

Invoice Processing Options: AP Automation Advancement

In any accounting department, there are a number of ways to automate invoice processing and provide efficiency and improve productivity of staff members.  The choice is really based on management’s desire to improve the overall invoice process, and is based on: volume of invoices, number of staff, and complexity of invoices.  Below are the options available, and the benefits/drawbacks:

  1. Stick with paper (No automation) – many accounting departments opt for this option, and in certain circumstances, it can be a wise choice.  Typically, if the organization has a very low number of invoices being processed per week, and minimal staff are required to process them, this can be a wise choice.  The disadvantages can be the lack of digital archives for audit and legal purposes, and over time a requirement for space and file cabinets.  Access can also be an issue, especially if remote personnel need invoice lookups.
  2. Scan Invoices Upon Receipt (Low Level Automation) – In this scenario, as invoices are received, they are scanned with basic scanning software, routed to AP staff, and indexed with basic invoice header information.  Usually this will also entail a dual monitor setup, where staff will have the scanned invoice on one monitor, and the accounting software up on another.  This removes paper from the process, provides some efficiency/productivity gains, and speeds up data entry and approvals.  Usually email is used for basic approvals.  Invoices are also archived automatically to provide access through a document management system.
  3. Advanced Capture & Extraction (Medium Level Automation) – In this type of processing, advanced document capture software is leveraged to auto-extract the invoice header and line item information during the AP process.  The accounting staff sees the invoices and extracted data in a quality assurance step, and once the info is validated, it is then automatically routed to the ERP/Accounting System, as well as archived to the document repository.  This provides a high level of automation, and minimizes processing time.
  4. Advanced Capture + Workflow (Highest Level Automation) – This type of solution includes not only document capture automation of all invoice processes, but also adds workflow software to aid in the routing of documents, kickback of invoices to vendors and solving any issues.  The addition of digital workflow adds the ability to track and report extensively on the AP process.

So, why not just go with the top level?  Depending on your staff, the move to digital can be a big step, and can also be expensive.  So for any project success, you need full management and staff support.  Purchasing software that support all enhanced levels of invoice processing can be key.  Questions?  Contact us today for a demo.

Invocie Automation
14Jun

Accounting Digital Transformation: Capture + Workflow

Written by Ken Kramer. Posted in Blog

The New Way to Crunch Numbers

Walk into any accounting department today and you are sure to see piles of paper and file cabinets.  Most of the paper is bound to the AP, or accounts payable process.  Throughout the month, invoices flood in from a variety of vendors seeking payment, and the paper plague never ends.   Adding to the problem is that the AP process doesn’t just deal with paper.  Some will send invoices as email attachments, others may fax them in.  Managing all these inputs, and processing/extracting information is painful at best.  So here are the core problems:

  • Multi-channel Input – invoices as paper, email and fax.
  • Conversion – the need to convert all inputs to a single document format
  • Invoice Data Extraction – the need to automatically extract information
  • Approvals – the requirement to route invoices for approvals
  • Integration – pushing and pulling data to/from accounting systems

So what is required to accomplish all this?  Utilizing iCapture and iWorkflow combined can drive great efficiency and automation from start to finish of your AP invoice processing.   Here are the benefits:

iCapture

  • Scan and capture invoices from desktop scanners, copiers and import from folders
  • Automatically split and extract invoice header and line item data
  • Send data and invoices to your accounting system, document management system or iWorkflow

iWorkflow

  • Route invoices for approvals
  • Build business rules for approval routing
  • Easy to use forms and mobile enabled

Want to learn more and see a demo?  Contact us today.

Invoice Scanning Benefits
05Dec

AP Automation Aftermath:  The Benefits

Written by Ken Kramer. Posted in Blog

Post AP Automation Project Benefits (The Pain Is Worth It)

Ah, the pain of going paperless.   The grumpy AP Clerk that stomps her foot and says “I want my paper”.  The sweat rolling down the AP Manager’s temple as they hit the green light on the scanning project to go to production.  The smiles at the end of the first week, and the “That wasn’t so hard after all.”

There are always bumps in the pavement on the road to any digital AP Process.  It takes a while to get the kinks out of the process, and create a “humming” invoice scanning process.  It’s funny, but we mostly focus on the process improvement, speed and efficiencies gained on what we call the “front end”, or the ingestion and extraction of information from paper invoices.   But there is a whole separate set of benefits that comes from creating a digital repository for later access.  Below are some key benefits, post process:

  1. Rapid Search and Retrieval – Now that invoices are in digital form, and are full-text searchable, you now have the power of instant access at your fingertips. Need to see all invoices processed on the last two days of the month…BOOM.  Want to see all invoices where widget XYZ was ordered in March…BA-BING.
  2. Audit Heaven – Need to provide auditors with a specific set of selected records? Just search for the documents you need, and export to a drive or network location.  No more printing or copying required (insert cost and time savings here).
  3. The Purge – No more file cabinet and record purge parties. With advanced invoice repositories, you can now, with the click of a button, archive off older records according to your records retention policies.
  4. Security for Records – now your accounting records are secure, and can be restricted to only those that need access. Folders will no longer wander away, and disappear forever (or sit on someone’s desk for a week).
  5. Shared Access – With security in place, and an online repository created, other departments can be given access to records, which is a huge help for over tasked accounting clerks. This is an even bigger benefit in companies with a centralized HQ and branch offices that require record access.

This is a just a short list of “Aftermath” benefits from the initial pain of an AP Automation.  Did I miss any?  Take a look at my first post here for the front-end “Benefits of AP Automation”.

21Nov

Accounts Payable Scanning Solutions

Written by Ken Kramer. Posted in Uncategorized

Invoice Scanning, Capture and Automation

Are you still processing your invoices the old fashioned way?  Is paper killing your AP department efficiency and productivity?  inForm Decisions can help with our invoice scanning and intelligent document capture solution: iCapture.  iCapture can automatically extract and process invoices, reducing time to process and freeing up staff for other important duties.

 

 

 

AP Automation Features

AP Automation Features

  • Scan and extract invoice information
  • Searchable invoice PDFs
  • Capture Invoice Data with Extraction
  • Route captured invoices to 60+ systems
  • Kickoff AP invoice workflow
    • AP Automation Benefits

    AP Automation Benefits

    • Reduce time to pay invoices
    • Auto-extract invoice data
    • Free up accounting resources
    • Save money
    • Ease audit pain
    • Invoice access for all

    Other Capture and Workflow Use Cases

    Other Capture and Workflow Use Cases

  • HR Document Capture
  • AP Invoice Scanning
  • Contract Data Extraction
  • PO Scanning and Capture
  • Admin Document Scanning
  • Copier Document Routing
  • And much, much more

    • 10Nov

    AP Automation and Invoice Processing FAQ

    Written by Ken Kramer. Posted in FAQs

    What is required to automate my AP processing?

    Every company is different, with broadly varying needs, and inFORM has a variety of solutions for every organization type and budget. Our EasyAP solution allows you to start simple and progress with scanning your invoices. iWorkflow will give you the ability to route documents and data through your organization with ease. So, to answer the question, just a commitment from your AP management and a quick call is all it takes.

    What type of scanner can I use for scanning invoices?

    iCapture can work with just about any desktop scanner, with support for ISIS and TWAIN drivers. For copiers and network scanners, folder processing allows any scanner or device that can create an image file to leverage the power of advanced capture.

    Can iCapture send extracted invoice data to my accounting system?

    iCapture can send extracted information to a SQL, Oracle or IBM database, and can also output data to a CSV or XML file for import. It also allows customization of the output file to meet your AP System needs for import.

    Can I send my invoices to my document management system when I am done processing?

    Yes. With iCapture, there is support for over 60 Enterprise Content Management (ECM) and Document Management Systems (DMS), including: Microsoft SharePoint, Alfresco, FileBound and many others.

    Aren’t invoice processing systems expensive?

    No. Many organizations are surprised at the investment required to start scanning their invoices. With iCapture, many of our customers can grow their business without the need to add additional staff to accounting to shuffle paper. When you add the ability to take advantage of early pay discounts, the gain of file cabinet space, and the savings on any off site storage, it becomes a simple decision.

    What about the business process beyond document capture?

    Document Capture Software is only one piece of the pie when it comes to invoice scanning and accounts payable processing. The question usually is: How do I automate approvals and notifications, or process exceptions? Inform Decisions also carries several workflow and business process management platforms that can automate invoice approvals , add notifications for staff and help process exceptions within your invoice process workflow.

    28Oct

    Invoice Scanning Benefits: Automating Your AP

    Written by Ken Kramer. Posted in Blog

    The Benefits of Digital AP Automation

    In my previous post, we discussed the pain of paper invoice processing, and all the key cost areas that are affected by physical workflows in AP. (Previous post: True Pain of Paper-based AP Workflow ). In this post, let’s discus the all the benefits of digital invoice processing and AP Document Automation. Below is a survey of accounting and finance professionals, and what they specific as key benefits of a digital invoice processing workflow (Survey data by Paystream Advisors).

    AP Automation and Invoice Processing

    Top Benefits of Invoice Scanning

    As you can see, there are numerous benefits from capturing invoices through a scanning process. All of the benefits contribute in some way to cost reduction, both in hard and soft costs.

    Along with these surveyed benefits, there is also quite a bit of value in time savings, as outlined below:

    Paper – the average time to file a paper invoice in a standard file cabinet system is approximately 5 minutes. This is just the actual time to file, and not other additional costs including copying, keying, etc. Based on avaerage labor rates, this comes to $1.67 for each invoice you process.

    Scanning Invoices – the average time to file is 30s to 90s depending on the level of automation and scanning device that is utilized. Jut in pure time, this equates to $0.50.

    So, if you just look at pure filing time, you are looking at cutting your time based costs by 2/3.

    Hopefully this has presented a compelling reason to move to a digital workflow when it comes to your Account Payable process. As you can see, even a small business can benefit substantially from a scanning process, improving efficiency and making employees more productive.  You can watch a quick video of our AP Solutions here:

     

    For more information, or for a real time demo of our AP Solutions, contact us today.

     

    CONTACT US

     

    AP Automation and Scanning
    23Oct

    Do Invoices Really Have to Be So Painful?

    Written by Ken Kramer. Posted in Blog

    The True Pain of Paper-based AP Workflow

    Ah, the pain of the paper invoice. AP Automation is all the buzz nowadays, and scanning and capturing your invoices and accounting data doesn’t have to be hard. It still amazes me that an estimated 75-80% of all invoices are still in paper form (Gartner AP Invoice Automation Study). The costs of dealing with paper can be exorbitant, even for a small business. Below are some interesting statistics from the AIIM:

    • Companies spend $20 to file a single document (time, materials, copies, etc)
    • It costs $120 in labor to find a misfiled document
    • It runs $220 to reproduce a lost document

    Now those are just generic numbers on the pain of running a paper-based office. Let’s get into some specifics on the cost of processing paper invoices. Below are some key cost areas, and really the justification for any move to an AP Automation Solution:

    Shipping and Mail– Many organizations with remote locations and branches still ship invoices to a central accounting office for processing. This creates time delays, and the opportunity for invoices to be misplaced or lost entirely. Some utilize “digital” invoice shipping, through the use of a scanning copier or a network scanner. This can add additional pain for the folks in the head office, that typically download, rename and save invoices in digital form. Some organizations will even print scanned invoices, to have a single flow of processing.

    Payment Cycles – According to IOMA, 25% of all invoices are paid late. Studies have shown that late payment is usually due to processing delays, and are quite typical in paper-based accounting workflows. Data transfer and entry errors can also lead to delays, as well as increased time to search file cabinets for errant invoices.

    Searching and Locating – In a previous life, my office was right outside a file cabinet row for accounting. There was a nice lady named Joan, who spent her entire day walking back and forth, looking for invoices. During audit time, many others joined her, and the traffic was crazy. They would spend untold hours searching, copying, removing and replacing folders. To top it all off, they would typically have to “put off” the inquiring person, and call them back while they searched.

    Archive and Storage – Long term storage costs can quickly multiply, especially if you are using an off-site storage provider. For growing companies, floor space is a huge consideration, and with the average file cabinet taking up 10-12 square feet of space, costs can quickly add up. Finally, there is the concern of disaster recovery. You cannot backup paper, and all it takes is a fire or triggered sprinkler to destroy important records.

    In this post, I cover all the pains of paper and Invoice Processing. In my next post, we will cover the benefits of a digital AP workflow, and how scanning/imaging your invoices can lead to efficiency and higher productivity. If you would like to jump ahead and see how InForm can help you with its iCapture product, you can take a peek here: iCapture for Invoice Processing and AP Automation