Businesses across the UK are applying smart digital solutions to address inefficiencies in accounts payable.

Jamie Radford, CEO of the Accounts Payable Association highlighted this trend when he sighted several emerging technologies that can help accounts payable remain competitive and relevant in a constantly changing business landscape.

The first identified trend is the rise of automation, long heralded as a great enabler of efficiency in business. Already evident in accounts payable it automates tasks such as form filling, invoice management, invoice reviews, approvals, and record keeping. Used intelligently, automating key tasks in accounts payable frees up staff to perform additional duties and helps to streamline processes.

Alongside automating accounts payable, there is also the ongoing transition to cloud-based solutions. These give the advantage of less costly infrastructure and the ability to access the system from anywhere. This taps into a trend in the hybrid workplace and the rise of remote working.

These benefits are certainly not exclusive to accounts payable professionals. But certainly indicative of a more liberated view of home working and achieving a more productive work-life balance. The business might also benefit from a reduction in office space costs and lower staff turnover.

Another aspect of cloud-based solutions is the collaborative nature of many digital solutions. This helps to improve communication within teams and between departments, enabling everyone to work together more effectively. Helping to streamline processes such as approvals for key business activities.

Data security

Data is another major factor. Digitisation has many positive implications for enterprises, but it is critical that data security standards are strong enough to protect against the malevolent designs of cyber criminals. In his article, Jamie Radford commented that Accounts Payable teams can strengthen data security by adopting software that incorporates security measures, such as two-factor authentication or KYC (Know Your Customer) procedures. All members of finance teams should be trained with a strong understanding of cybersecurity principles, he added.

The data itself can be incredibly useful for Accounts Payable teams, and the tools introduced by automating accounts payable, such as intuitive online dashboards, allows a greater degree of intelligent, automated analysis. This information makes both finance reporting and spotting emerging trends in the data much simpler.

The final trend observed in the Association’s article was one that is probably close to any long-serving accounts payable professional’s heart: the ability to quickly set up digital payments. This makes the weekly cheque run a thing of the past, giving customers, suppliers, and employees confidence that cleared funds will be paid on time.

Delivering for customers

Many of these trends ring true for how Ricoh’s accounts payable solution delivers for customers. Integral UK Ltd, a JLL company, has talked recently about this impact. The building services firm employs 3,000 people in the UK. This includes suppliers and subcontractors who invoice for the products and services which enable Integral to meet its customers’ demands. The busy accounts payable department at Integral is consequently dealing with around 250,000 digital invoices every year.

Processing some 20,000 invoices each month using manual processes had become an increasingly complex and labor-intensive task. Arriving as PDFs they needed to be manually sorted into different folders for onward processing. But problems would arise from emails arriving without the invoice attached, or with multiple invoices and additional documents attached. There were concerns that invoices were going missing amidst the sheer volume, as well as some emails going straight into spam because suppliers were sending multiple emails simultaneously.

Smart accounts payable

Integral, therefore, needed a smart AP processing solution that was flexible and intelligent. Able to recognise an invoice and its content, and automatically route it to the appropriate next action. The solution needed to be able to identify different invoice outcomes and create a single document repository for validation and control.

At the same time, Integral was implementing a new ERP system, so the accounts payable system needed to be able to automatically populate the ERP with data from the processed invoices. This complication also necessitated a phased implementation approach.

As well as improving efficiency, reducing waste, and streamlining processes, a further driver for Integral was a desire to be less reliant on paper workflows in order to improve its sustainability.

Direct benefits of a smart accounts payable solution

Ricoh’s DocuWare-based accounts payable solution is now making a profound difference to the way that Integral processes its incoming invoices. As well as the improvements in efficiency, productivity, business agility, and customer service, this is reducing the incidence of late payments by some 17%.

Acting as a central repository for all supplier invoices and statements and associated documents, the solution reads incoming emails by using parameters such as the supplier’s name, to automatically categorise them. It also applies intelligence to document sorting, For example, a higher value or urgent invoice is prioritised. It has defined workflows to deal with inconclusive or exceptional invoices. Again, for example, those with invalid or incorrect details, those with high values that need secondary approvals, and those that do not require a Purchase Order number, such as utility bills.

Using DocuWare’s OCR capabilities Integral is now able to transpose data automatically from invoices into its accounting and ERP systems. Ricoh has been working with Integral all the way, to support some of its bespoke needs. One example of this has been the customisation of DocuWare to handle DRC VAT, a construction industry VAT treatment, specific to Integral needs.

Integral’s future plans

Integral plans to roll out its new smart accounts payable solution across the business, unlocking more and more benefits as it does so. As well as more efficient responses to queries there are fewer data input errors, payment errors, email rules, addresses, and document folders. And, of course, the significant reduction in late payments as already mentioned. This all helps to enhance customer service.

In addition, the company says that it is benefiting from greater visibility of its accounts payable process, with easier and improved reporting. Integral’s Head of Finance Transactions and Controls, Sarah Pearson, refers to a “single source of truth” which has been established by the DocuWare solution. Enabling the firm to manage its once labour-heavy invoice processes more accurately and effectively.

For Sarah Pearson “the beauty of DocuWare is that it’s incredibly flexible and works with us and at our pace as we develop and improve how we operate. Our smarter accounts payable solution is core to enabling us to move to a paperless, automated process. Fundamentally, it is changing the way our accounts payable system operates and improving on-time payments.”

Read the full Integral case study:

Click to read Integral Case Study

 The direction of travel is clear. Accounts payable, alongside other finance functions, is becoming increasingly digitised. And businesses such as Integral are already learning that customers and suppliers appreciate enhanced levels of service and certainty. Whilst their own organisation also stands to gain a wealth of benefits around efficiency, staff productivity, and sustainability.

Show me more about automating accounts payable:

Click to read DocuWare Accounts Payable (GBR)

The post Smart accounts payable technology helps Integral reduce late payments by 17% appeared first on Insights - Empowering Digital Workplaces.

For finance professionals this isn’t simply about saying yes or no to proposed big ticket IT investments that profess to be a silver bullet for the company’s prospects. Digital transformation has been identified as the number one priority for CFOs in 2021*. So it’s time for finance and IT collaboration. This will ensure that digital financial management systems such as automated accounts payable and accounts receivable can be implemented in the smoothest possible way. This results in minimum disruption and maximum business benefit going forward.

See what you could save by automating your accounts payable – use our ROI calculator

Now is the right time for finance and IT collaboration

Increased remote and hybrid working has applied an accelerator to many finance technology investments. Many of these investments have long been aspired by finance departments to improve their efficiency and the financial performance of their organisations. But without the pressure of external influences these have never been realised. Increased automation in FinTech is a major trend that many of us want to embrace. Even more so as we look to move beyond paper-based workflows into a more agile digital future.

The benefit of finance and IT collaboration

Decisions on technology implementations should be taken in conjunction with the IT experts. Constructive finance and IT collaboration will reveal the existing state of systems within the enterprise, identify the best solutions and partners in the market to integrate with this infrastructure, and provide the right levels of ongoing support and training. With finance and IT in close collaboration you can plot the steps that need to be taken. For example, identifying the potential pitfalls that might arise as well as the additional opportunities that can arise with close collaboration.

Why finance and IT collaboration is so important

Latest statistics indicate that some 25 per cent of technology implementations are regarded as unsuccessful. This is a result of them failing to meet the originally defined project objectives and expectations.

If finance and IT teams apply genuine collaboration you are more likely to ensure you don’t join this lengthy list. With the right application of expertise and planning, combined with support from an expert integration partner, you can realise success and positive return on investment comparatively quickly.

The digital technology finance teams should adopting

Discover more about the technology finance departments need to adopt a hybrid working approach. Realise greater efficiency, accuracy as well as future continuity. Digital solutions such as automated accounts payable and accounts receivable are obvious first key steps. Learn more about these technologies by accessing useful reading and resources here.

Further reading and resources for finance teams

Further reading and resources for IT teams

The post How Finance and IT collaboration can accelerate digital transformation appeared first on Insights - Empowering Digital Workplaces.

Enterprise organisations achieve several proven benefits by automating their accounts payable, these are; 

• Dramatically reduces costs: 71% of organisations maintain a fully manual accounts payable process. The savings costs gained by moving to an automated process can be as much as 80%. Enabling organisations to allocate this expenditure into other areas.

• Reduces processing time: 70% of time is typically spent trying to reconcile invoices and as many as 62% of organisations experience inaccuracies. So a reduction in manual intervention means fewer errors, emails and phone calls. Resulting in a time saving of up to 95%.

• Limits fraud: Replacing manual intervention with automation makes fraud much less likely, and greatly reduces the pool of potential suspects, should fraud occur. 

• Scope for scalability: The potential to scale up, or potentially down, is unlimited and comes with a minimal cost implication, plus it avoids the financial implications of hiring, training or layoffs.

• Real-time data visibility: Automation brings accurate and timely data by digitising all physical invoices and simultaneously updating records, budgets and forecast projections.

• Improved cash management: As data updates in real time, cash management becomes more accurate, meaning you know the exact cash position, what’s still owed, and the ability to confidently embark on new financial opportunities.

All of these are major advantages over the time-consuming and clunky manual systems that many companies have traditionally employed.

Use our ROI calculator to see what you can save by automating your accounts payable

Choosing the right partner for automating accounts payable

But to realise these benefits you need to make sure you adopt the right accounts payable solution and choose the right partner to implement it into your business accurately. Get it wrong and your new automated accounts payable process could suffer from system problems or poor support.

If an implementation isn’t handled correctly, the realisation of improved cash flow, reporting and supplier relationships can quickly evaporate. This can also cause serious damage to your business performance and reputation so must be managed carefully.

These are prime reasons for choosing a technology partner very carefully, when looking at automated accounts payable systems. This partner will have one of your critical business functions in its hands; you need to be able to trust it implicitly. 

Hear from Ricoh CFO, Rachel Stokes on the importance of accounts payable

The questions you should be asking when automating accounts payable

There are many software solutions available that promise the efficiencies of a digital accounts payable system. Who are the companies behind these solutions though? It is always worth digging a little deeper to establish the answers to a number of important questions. Consider the following questions:

• What is the history and background of the company in question? Locating an experienced and larger accounts payable partner will provide many benefits. Not only will they have the scale and resources required, they will also have knowledge gained across many industries and a depth of experience.
• What experience does the company have in this field? You want a supplier that doesn’t just say it understands your business needs, but has shown that it can understand and meet such needs over many years and for many customers. A proven track record in financial IT should be a key requirement.
• What capabilities does the supplier have in terms of support and training? This will be important both during the initial scoping and implementation stages, and also on an ongoing basis, as you use the accounts payable system. An experienced partner with real scale should have existing solutions in place for support and training. Indeed many have dedicated change management solutions as part of their service offering.
• What is the culture of the prospective partner like? Companies approach the market in different ways. Some adopt an aggressive sales-based approach; others look to be more consultative and are keen to get to grips with your specific requirements. This should become apparent when speaking with a sales rep, plus it should also be reflected in your entire experience with the partner.

Seek reassurance from a partner you can trust

Your first priority should be finding a partner that can demonstrate the right degree of experience. They need to know the ground well and be able to steer you clear of potential pitfall. Have the ability to look beyond just implementing a system to give you the support you need going forward. It comes down to trust – no partnership works without it. 

Learn more and identify the potential ROI before taking your next step

As a global digital services organisation with a broad portfolio of services and solutions Ricoh are able to support customers through every stage of a project. From the initial discovery process to identify critical needs through to training and change management to ensure success, we support organisations every step of the way.

Learn more about how we help finance teams improve visibility, control costs, improve security and achieve greater accuracy.

Use our ROI calculator to see what you can save by automating your accounts payable

The post Six reasons why you should consider automating accounts payable and how to find the right implementation partner appeared first on Insights - Empowering Digital Workplaces.

Many forward-thinking organisations are looking to the future and working on plans to facilitate growth. Yet to make mission-critical decisions in a challenging world, leaders with a growth mindset need a clear financial picture. Without a real-time view of their cash position, investment decisions are difficult to make. A manual accounts payable process cannot provide CFOs with this vital information in real-time.

Automating the accounts payable process will not just provide immediate access to cash visibility, forecasting, and reporting. It will also transform what has historically been a very manual, time-consuming business administration process. 

Staying competitive in this new economic environment requires smart practices in all areas, even the unobvious ones. This is where our automated accounts payable system comes in.

Where’s the real value in accounts payable? 

Most likely you have a dedicated accounts payable function or employees who take care of this process. It is their job to receive purchase orders, delivery notes, invoices, process payments, and remittances. In some organisations, this all still exists on paper with records kept in messy in-trays and bulging filing cabinets. 

Neither of these approaches provides you with a real-time view of what’s really going on in your business and an actual cash position that you can rely on getting, anytime you need it. And this is exactly what’s required if your business is to make better quality investments, see better ROI on those investments and make better savings. 

What can Ricoh’s automated accounts payable system offer you?

Investing in a robust and resilient accounts payable system now will unlock massive value within your business. Helping you to scale up your internal operations for a robust future. And if the quantum leaps made in digitisation recently have proven anything; transformation doesn’t take as long as we may think. 

Within each step towards digital accounts payable, there are also opportunities to save money, time, and resources. Costly mistakes and miscalculations are the last things any growing business needs. Especially if a slip-up leads to an easily avoidable risk. 

Complete visibility for your executives 

Automated accounts payable revolutionises cash visibility, forecasting, and reporting. Users are given access to a dashboard, which offers a real-time view of their cash position, allowing leaders to make high-level business decisions with all the knowledge at their fingertips. 

The system implements seamlessly with business operations within a few weeks at no delay – a big selling point for your C-Suite. Finance teams are also trained ahead of the system going live, giving the right people immediate value.

All-around cost saving

Investing in an automated system means a lower cost across the lifetime of your business. There may be an upfront price to pay, but in the future, it will cut processing time and labour requirements. We found our system makes the process twice as fast, from 48 hours plus to under 24 hours. 

Having a system in place can also empower accounting staff to focus more on strategic business goals and cost-saving activities. Which can only stimulate growth and fill individuals within your organisation. 

Streamlined remote working

Suppose your accounting team has been fighting a losing battle with paper-based remote working. In that case, our secure cloud-based solution can offer you flexibility and continuity, no matter where your team members are based. And let’s be honest, it seems unlikely that we’ll be 100% office-based ever again.

As the system uses self-learning technology it also automates live feeds and batch approvals, easing workloads for your team. Task lists, notifications, and recorded version control also make the process faster and easier to manage from multiple locations. Keeping the entire team updated and on task. 

The technology 

Our process automation allows you to digitally receive and process invoices and purchase orders with complete efficiency. With a powerful search function for instant retrieval of information when needed regardless of the source. The technology makes it possible for everyone to access the exact version of the same document anytime and anywhere.

The self-learning data input also means the system is able to auto-extract and populate invoice data. Therefore, it can be indexed against its original purchase order. No scrolling through endless records, no scope for human error, and certainly no need for staples. 

And it doesn’t stop there if the system works well in your accounting department. You can also consider integrating the same solution to other departments within your organisation. In manufacturing, and especially sales, this technology provides huge potential for growth.

Integrating automated accounts payable into your business

We’re confident our solution can help a range of sectors. But we don’t operate with a one-size-fits-all approach. We tailor the solution to you and put together a package that fits your needs. 

Once we have the solution in place. Our team will provide training to all who require the use and visibility of the system. And if issues and queries pop up, there will be reliable, and reachable after-sales care on hand. 

Find out more 

Are you ready to ramp up those processes that are ‘done that way, because they’ve always been done that way?’ 

The gap between those keeping up and those falling behind is growing. It’s time to match your internal operations with your external growth ambitions.

Use our ROI calculator and find out what this means to you

The post Why automating accounts payable should be your next strategic goal appeared first on Insights - Empowering Digital Workplaces.