For many businesses, manual AP processing costs can be crippling due to labor costs and billing inaccuracies. If you are looking to streamline your AP operation and reduce department costs, switching to an automated electronic invoice provider like Datrose is the perfect solution.
Maverick spending refers to purchases that are made outside of agreed contracts. These purchases ignore defined procurement processes and can end up being very costly for businesses.
A key step in stopping maverick spending is making sure there’s a purchase order for each request and matching that purchase order to the associated invoice and receipt. This process occurs automatically with automated AP processing and eliminates Maverick spend.
Manual payment processing is one of the largest contributors to high AP processing costs. Manual payment processing involves downloading attachments, manually keying in data, scanning documents, hunting down lost invoices, reconciling supplier and PO information, manually entering invoice data, and more. Not only are these tasks tedious, they are time consuming and error prone.
Automated AP processing drastically reduces the amount of time needed to process invoices, and virtually eliminates the above-mentioned manual tasks through automation. With automated AP processing, invoice data is extracted, invoices are matched with purchase orders, GL distribution codes are assigned, and invoices are archived automatically. This takes a heavy burden off your employees and frees them up to do more valuable and revenue-generating activities.
These are just some examples of the common errors that can be seen with manual AP processing, and they all contribute to hidden and unnecessary costs. By automating your Accounts Payable processing, you are eliminating the risk for these errors to occur by taking human error out of the equation. Automated workflow and approval functions ensure that each and every transaction is documented and verified as it moves through the system. Double payment, late payments, and matching errors are all flagged and prevented with an automated AP system.
Datrose has been in business for over 44 years and works with some of the most recognizable brands in the world. We are experts in business process outsourcing and take a personalized and hands on approach with each of our clients. We get to know YOU, your business, and provide tailored solutions designed to make your business more efficient and competitive.