Streamlining the approval process is one of the greatest challenges for businesses across all industries. There’s a chain of steps involved in having an invoice authenticated and approved before payment. It is a sensitive process which takes time and a lot of counterchecking to avoid errors. Traditionally, this meant the business had to invest in a lot of personnel to get every bill approved.
In today’s fast-paced and volatile business environment, owners and managers are under immense pressure to reduce costs of operation and maintain efficiency. In the approval process, this translates to fewer people working on increasingly complex invoice approvals. Without the adoption of new technologies to deal with bill approval, your modern business risks getting overwhelmed by the growing volume of transactional data.
It is understandable that the initial cost of change is high and like with any business, your priority is on reducing operational costs. However, failure to adopt the latest approval workflow (PAW) solutions puts your investment at risk.
This guide highlights the importance of upgrading your old invoicing processes by integrating a reliable invoice workflow solution into your operations.
Common Traditional Bill Approval Problems
To appreciate the need for an overhaul of your invoice approval process, consider myriad challenges your team has to grapple with every day. These include:
- Unauthorized Purchases
- Late payments
- Tedious multiple-step invoice approval processes
- Double payments
- Duplicate invoices
- Lack of Transparency
- Problems in monitoring due to the long paper trail.
- Disorganized recordkeeping
- Data entry errors
- Ruined supplier relationships
- paying invoices before receipt of a product or service
These are only a few of the challenges you encounter when using the traditional invoice/ bill approval processes. On paper, they look like innocuous issues but many businesses have collapsed due to the escalation of these problems. To save your business and get a competitive edge, it is time to go digital with the best bill approval solutions.
Why Go For Automated Invoicing Process?
Most businesses processes are now digital and you can also integrate a reliable invoice approval management solution to your existing ERP system. Below are some of the benefits your business enjoys by adopting a good bill approval management system:
Reduce Payment Errors
Many businesses lose money due to payment errors and this is a problem you can avoid by using efficient invoice approval software. What’s more, you will not have issues with vendors by underpaying as the system streamlines the process and makes available supporting documents to help make an approval decision. Before any payments, the approving party has to review all accompanying documentation and remarks from other approvers to make the final decision.
The accounts payable process is fraught with risks of fraud and many businesses lose money this way. When you automate your invoice approval process, you empower your team to detect and avert fraud. The system provides a central source of all information regarding a bill payment and every party involved in the approval process will use the transaction. Any questionable payments will raise red flags early enough and an audit trail will provide visibility into the actions and decisions of the participants in the approval process.
Reduce Invoice Approval Time
The back and forth involved in traditional paper-based invoice approval leads to wastage of time and bad relationships with your suppliers. There are multiple decisions required in the traditional approval process and this requires a lot of time.
With an automated accounts payable system, you can save a lot of time as two-and three-way matching requires no human interaction, routing of payables to predetermined business processes is automated and information required for approval is readily available on the software.
It is important to stay on top of things when it comes to invoicing payments. This is one of the major expenses in your budget and your accountants will want to keenly monitor what’s happening. With an automated bill approval system, this is easy as every authorized party has log-in credentials.
Your team will stay on top of payments and avoid inordinate delays to vendors. Real-time monitoring is not possible when using paper-based invoice processing. With an automated invoice approval system, you can also share information in real-time with concerned parties for better decision making.
Better Insight and Transparency
With the greater visibility into all transactions in the invoicing process, your team as better insight required for decision making. It is possible to see the bigger picture, ensure compliance with company policies and transparency in all transactions.
A reliable invoice approval management solution eases pressure on the business, easily Integrates with existing finance systems, reduces the risk of loss through double payments, expedites bill approval and helps improve business relationships. It is a smart way to boost the performance of your business.