Creating a paperless account payable seems like a daunting task but it hosts numerous benefits that save time, money, and storage space. The saving of these three things proves a success for the businesses.
However, switching to a paperless account does not happen overnight nor it is easy. But it is definitely worth it which is why this article explains the process of going paperless.
In order to head towards the paperless accounts payable via software, the accounting process should be digitized. It is necessary to realize the paperless goals and take a record of the present process.
The software will implement an automation process and it is important to have a meeting on this with the team so that no conflicting opinion is raised.
Steps to Paperless Accounts Payable
Keep an eye on AP
Before planning to implement the paperless process, understand and familiarize the current account and where it stands. The present workflow should be monitored. Basically the things which need to be understood are the time taken to process an incoming invoice and the expenditure an invoice needs on average. Brainstorm and ask questions before jumping into the implementation step.
Have a meeting with the CFO, AP managers, and other staff members in order to have a better grip on the AP. Set the goals for automation and communicate with others. Ask for approval from everyone. Discuss the type of automation system to use for the account.
Things that need discussion are the amount of money that can be saved by automation, what the AP employees will do in the free time and the total sum of money required.
Take approval from everyone
Making a paperless accounts payable affects the whole company, not just an individual. Therefore, it is crucial to get everyone at the same level of understanding before actually doing it.
Mostly it is the upper management or the IT department which is not in favor of any changes so in order to avoid resistance, talk about their concerns. Moreover, the management team asks for
evidence in order to make sure that the paperless account is cheap and it improves the business. As for the IT team, it gets curious about how the compatibility, resources and security within the company will be affected. The staff is concerned whether they will be fired and how the business will be affected.
Base decisions about paper
The degree of automation which should be implemented is crucial to talk about. Therefore, understand where the process of your accounts payable stands and how many people are in favor of automation.
Eliminating the use of paper is not possible which is why it should be decided how far with automation the business will go.
Some options include making payments via paper checks like before but storing the AP information by digital means. Or the invoices can be digitized while the paper files of the incoming invoices are stored. Do note that all these decisions depend on the needs and requirements of the company.
Set Custom Tolerances
In order to process invoices, custom tolerances are set up in an automated system. A competent software for automation is the one which not only codes the incoming invoices automatically but also routes them for getting approval by electronic means. The user can enjoy full leverage and authority over the automation process.
Select an automation supplier
The software requires a good supplier. The software should implement the system as fast as possible. The cost expenditure on the implementation and if the system is compatible with the current ERPs are some of the concerns which need to be solved before practically doing it.
Also, inquire about how much the business can be expanded with the supplier and how efficient the reporting tools are. It is best if the software offers a free trial. The software which is the best at implementation is NextProcess.
Adapt to the new system
After the software is implemented, learn and get familiarized with the new system. Check to see if it is functioning properly. The invoices get processed
automatically and those invoices which are not compatible with the customized tolerances or need manual approval are sent to the respective manager.
Re-engineering the account processes to paperless is a huge milestone that every business should be prepared for. While there are many methods to go paperless, the software method is the most preferred one as it is safe and fast.