Managing a successful business requires a workflow that ensures consistent capturing and routing of information, especially when it comes to the invoicing process. As the accounts payable and invoicing departments regularly interface with customers and suppliers, any deficiency may reflect poorly on the company. If the company relies on paper-based processing, mistakes and errors are likely to occur, which can lead to a loss in revenue or increased costs. Adopting a document management software solution can streamline the workflows for invoicing customers.
For companies to remain competitive in the modern business landscape, they should make every effort to improve efficiencies and drive up productivity. Using traditional or manual tools such as spreadsheets adds unnecessary overhead to the process and increases processing times, introduces errors, and requires more considerable effort from staff. With an electronic system, fast and accurate processing of all invoices is possible while also reducing the costs associated with the tasks.
What is a Document Management System?
Sometimes also called an Enterprise Content Management (ECM) system, a document management solution allows for the electronic capture, storage, and transmission of documents throughout the company. Document management systems evolved from large enterprise solutions to cost-effective and easily configurable software that adapt to any company’s specific workflows. While it’s not entirely possible to remove all paper processes from a company, the number of physical copies is reducible by implementing the right software solutions.
For invoicing processes specifically, timely and accurate processing of all incoming documents is essential for every business. With a document management system, the company can free up resources from the tedious data entry tasks to focus on more productive activities.
The Benefits of a Document Management System for Invoicing
Modern document management solutions come with a host of features that improve the office’s workflows and processes. It not only reduces the need for physical document processing and printing, but also guarantees that staff completes tasks accurately and efficiently. The benefits from these solutions go beyond just processing invoices by improving communication and streamlining all administrative business processes.
Centralized Storage and Searching of Related Documents
Every minute an employee spends looking for a document is time wasted that could have been spent on more valuable activities. If an invoice relates to another document, and the clerk needs to locate the record from a cabinet or storage area, the company increases its labor overhead.
Document management systems make it easy to quickly search and retrieve the electronic document from a centralized repository. Using the metadata associated with the document to search the entire library means staff can find the right record every time. Document management systems can also create relationships between documents, so staff can easily navigate through the system when investigating issues.
Improved Information Security
Financial documents are some of the most sensitive information that flows through a company. With a document management solution, every document receives a type and disclosure classification. As the system integrates with existing user-profiles and the Active Directory (AD), only authorized staff members have access to sensitive documents. Similarly, by moving to an electronic system, it reduces the risk of accidental disclosures from documents left on a desk or uncollected from a printer. Opting for an entirely managed solution will ensure a company secures all information against an inadvertent breach or dedicated cyber attack.
Complete Audit History and Reduced Cost of Compliance
Document management software includes a full audit history of every document. By using an electronic workflow, every change to a document, and the context behind the change, is available for future investigations. Workflows also enforce the approval cycles for the invoices, ensuring that they reach the right authority within the organization before processing them for payment. With a complete history of each processed invoice, the company can significantly reduce the cost of demonstrable compliance with financial regulations and legislation.
Automated Capturing and Financial System Integrations
Current document management systems can use Optical Character Recognition (OCR) technology to capture invoices directly from a scan. By mapping the invoice templates to data fields in the financial software solutions, staff can scan regular invoices and automatically upload the electronic data into the financial or accounting system. With modern Application Programing Interfaces (APIs), the document management system can interface directly with other software systems the company may already have implemented. The company can also improve disaster recovery by backing up the entire electronic library locally or to the cloud, enabling them to restore the system if a major issue occurs.
Streamline Invoicing Processes with DOCUmation Software Solutions
DOCUmation provides managed services and technology solutions that increases productivity and reduces deficiencies for clients. For almost three decades, DOCUmation has served customers with expert advice and state-of-the-art software systems to streamline their processes. DOCUmation provides managed IT, print, and software services that ensure companies can reduce costs and speed up all their information processing tasks.
If you need to implement a document management system that helps the company with invoicing clients seamlessly, get in touch with one of DOCUmation’s software experts today.